- Keurig Dr Pepper Inc (NASDAQ:KDP) reported first-quarter FY22 sales growth of 6.1% year-on-year to $3.08 billion, above the consensus of $3.01 billion.
- Net sales growth was driven by favorable net price realization of 6.3%, slightly offset by a lower volume/mix of 0.2%.
- On a two-year basis, constant currency net sales advanced 17.5% versus 2020.
- Net sales for Coffee Systems declined 4.3% Y/Y, Packaged Beverages increased 13.2%, Beverage Concentrates grew 9.5%, and Latin American Beverages climbed 16.8%.
- Gross profit rose 3.1% Y/Y to $1.7 billion, with the margin at 53.6%. The operating margin was 31.4%, and operating income for the quarter jumped 50.9% to $966 million.
- Adjusted EPS of $0.33 was in line with the analyst consensus.
- The company held $594 million in cash and equivalents as of March 31, 2022.
- “Margins were impacted by accelerating inflation, which outpaced the timing of pricing actions, and the previously discussed coffee supply chain disruption,” said Chairman and CEO Bob Gamgort.
- Outlook: Keuring Dr Pepper raised FY22 constant currency net sales growth outlook to a high-single-digit range (prior view mid-single-digit range)
- The company reaffirmed FY22 adjusted EPS growth guidance in the mid-single-digit range.
- Price Action: KDP shares traded higher by 0.33% at $37.99 on the last check Thursday.
