Keurig Dr Pepper has reaffirmed its guidance after reporting net sales growth of 8.9% year-on-year, to $3.35 billion (€3.04 billion), in the first quarter of 2023.
The company now expects net sales growth of 5% and adjusted diluted EPS growth of 6% to 7% for the full-year at constant currency.
The American multinational soft drink company reported favourable net price realisation of 9.9% drove the consolidated net sales growth.
It was slightly offset by lower volume/mix of 1.0%, which it says reflects the strength of the company's brand portfolio and continued modest elasticities across most categories.
Net sales for the first quarter increased 12.7% to $2.01 billion (€1.82 billion), compared to $1.78 billion (€1.62 billion) in the year-ago period, reflecting favourable net price realisation of 12.5% and a 0.2% increase in volume/mix.
The company attributed this performance to traction from recent innovation, most notably Dr Pepper Strawberries & Cream, and effective in-market execution, as well as the contribution from recently announced sales and distribution partnership for C4 Energy.
GAAP operating income decreased 30.4% to $490 million (€446 million), compared to $704 million (€640 million) last year, largely reflecting the unfavourable year-over-year impact of items affecting comparability.
Keurig Dr Pepper noted that its performance was also impacted by continued broad-based inflationary pressure and a net $32 million year-over-year headwind from the company's strategic asset investment programme, partially offset by net sales growth and productivity.
Excluding items affecting comparability, adjusted operating income increased 11.6% to $508 million (€462 million).
'Confident 2023 Outlook'
"Our results were led by strong revenue growth, supported by successful innovation, increased marketing and modest brand elasticities," said chairman and CEO, Bob Gamgort.
"On a consolidated basis and against the backdrop of persistent inflation, we are driving healthy bottom-line growth while reinvesting in our business, and we remain confident in our 2023 outlook," Gamgort added.
Read More: Keurig Dr Pepper Rejigs Supply Chain Structure
© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.