Keurig Dr Pepper got a major sales and profit hike in Q2, on the back of higher prices and increased marketing spend across product segments.
Net profit spiked to $503 million USD compared, with $218 million USD for the same period a year earlier. Net sales increased by 6.6% to $3.79 billion USD.
For the international business, which includes Canada, net sales for Q2 increased 10.9% to $489 million USD. The strong performance was driven by higher net price realization of 6.1% and volume/mix growth of 0.9%, and reflected “broad-based momentum” in Canada, fueled by low- and no-alcohol beverages, as well as gains in its coffee market share.
The maker of Keurig, Dr Pepper, Canada Dry, Clamato, Mott’s and Snapple is also reporting “marketing increases across all segments,” and is promising to further boost the value of its core brands through marketing and brand innovation, while heightening omnichannel selling effectiveness.
In this morning’s earnings call, Chairman and CEO Bob Gamgort called its beverage performance “outstanding,” with “strong momentum” for zero sugar beverages.
The company is also reporting that its iced coffee maker performance was boosted by “strong marketing across all media,” and that the iced coffee portfolio is resonating with younger consumers.
However, net Q2 sales for Keurig’s U.S. coffee decreased 5.7% as the company reports at-home coffee consumption in the quarter continued to be impacted by year-over-year changes in mobility.
Looking forward, the company is raising its net sales growth outlook for 5-6%.
