Keurig Dr Pepper (NASDAQ: KDP) Inc announced on Thursday that its quarterly performance exceeded Wall Street expectations and forecasted that its annual sales would grow, as the soda manufacturer benefited from several rounds of price increases that helped offset a slowdown in demand due to inflation.
This performance indicates that consumer goods companies can pass on the premium to retailers and consumers.
According to NielsenIQ data, the average price per 192 ounces of soda by Keurig Dr Pepper in the United States rose from $7.45 in 2021 to $8.50 in 2022, reaching $9.64 as of June 17.
The share price of the Texas-based company slightly rose by 1.1% in pre-market trading.
According to Refinitiv data, Keurig Dr Pepper's revenue for the second quarter was $3.79 billion, exceeding the expected $3.69 billion.
The company said it expects net sales to grow by 5% to 6% for the full year of 2023, an improvement from the previously forecast 5% growth. It reiterated its forecast for adjusted earnings per share to grow by 6% to 7%.
In the US coffee business, CEO Bob Gamgort stated in a release that he expects sequential revenue recovery in the second half of the year and a significant improvement in profit margins.
Excluding some deductions, the company's earnings per share were 42 cents, exceeding the expected 40 cents.
