Keurig Dr Pepper, the renowned soft drinks company, has announced a more-than-doubling of its profits in the second quarter. This impressive growth can be largely attributed to a substantial increase in sales following a price hike of over 8%.
During this period, net profit skyrocketed to $503 million, or 36 cents per share, an immense rise from $218 million, or 15 cents per share, recorded in the same quarter of the previous year.
When excluding one-time items, the company's earnings per share reached an impressive 42 cents. Analysts polled by FactSet had anticipated adjusted earnings per share to be slightly lower at 40 cents.
Notably, Keurig Dr Pepper experienced a 6.6% increase in sales, totaling $3.79 billion, surpassing the projected revenue of $3.69 billion forecasted by analysts.
The sales growth achieved by Keurig Dr Pepper can be attributed to a strategic price increase of 8.2% during this period, which effectively offset a minor 2.1% decline in volumes.
Furthermore, the company provided reaffirmed guidance for the entirety of the year.
Chairman and Chief Executive Bob Gamgort expressed optimism about the company's performance, stating, "We observed sustained momentum in the U.S. refreshment beverages and international segments, as well as positive developments in U.S. coffee throughout the quarter. We expect a sequential recovery in revenue and a significant improvement in margins in the latter half of the year."
In pre-market trading, shares of Keurig Dr Pepper rose by 0.9% to $32.84.