Keurig Dr Pepper: ‘Strong start’ to 2021
Net sales advanced approximately 11% on both a GAAP and constant currency basis, with each of the company’s business segments reporting strong growth. Net sales reached $2.9bn, up from $2.51bn in the year-prior period.
The company has also increased its outlook for 2021 net sales growth to 4% to 6% (up from prior guidance of 3% to 4%).
“We delivered an exceptional first quarter, driving double-digit net sales and earnings growth, behind outstanding in-market execution,” said Chairman and CEO Bob Gamgort.
“Looking forward, we see an improving, but volatile, macro environment marked by increasing consumer mobility and rising inflationary headwinds.”
In the coffee systems division, net sales rose 17.4% to $1.14bn, compared to $0.97bn in the comparable period. “The pod volume growth was driven by strong at-home consumption, partially offset by continued softness in the away-from-home business, as return to offices and hospitality has been slow,” says Keurig Dr Pepper.
In packaged beverages, net sales for the quarter increased 7.4% to $1.31bn, compared to $1.22bn in the year-ago period. Leading the net sales performance were Dr Pepper, A&W, Canada Dry, Sunkist, 7UP, and Squirt CSDs, as well as growth of Snapple and Clamato, partially offset by a decline in antioxidant-infused beverage brand Bai, which KDP acquired in 2016.