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Investing.com -- Keurig Dr Pepper Inc. reported second-quarter earnings that exceeded analyst expectations, but shares fell 2.1% following the announcement.
The beverage giant posted adjusted earnings per share of $0.49, beating the analyst consensus of $0.47, while revenue reached $4.16 billion, slightly above the $4.14 billion estimate and up 7.2% YoY on a constant currency basis. The company’s top-line growth was driven by volume/mix growth of 5.0% and favorable net price realization of 2.2%.
Despite the overall positive results, KDP’s U.S. Coffee segment continued to struggle, with quarterly net sales decreasing 0.2% to $0.9 billion. While the segment benefited from favorable pricing actions of 3.6%, this was offset by a volume/mix decline of 3.8%, reflecting ongoing challenges with pod and brewer shipments.
"Our Q2 results cemented a strong first half of the year, as we drove robust performance in U.S. Refreshment Beverages, good growth in International, and sequential progress in U.S. Coffee," said CEO Tim Cofer. "Today’s dynamic environment puts a premium on operational excellence, which we are demonstrating while pushing ahead on our multi-year strategic agenda."
The company’s strongest performance came from its U.S. Refreshment Beverages segment, which saw net sales increase 10.5% to $2.7 billion, driven by market share gains in carbonated soft drinks, energy, and sports hydration categories. The acquisition of GHOST contributed 4.0 percentage points to overall volume/mix growth.
KDP reaffirmed its fiscal 2025 guidance, projecting mid-single-digit constant currency net sales growth and high-single-digit adjusted EPS growth. The company noted that foreign currency translation is expected to create approximately a half percentage point headwind to full-year top and bottom-line growth at current rates.