(Reuters) -Keurig Dr Pepper reported second-quarter slightly revenue above Wall Street expectations on Thursday, driven by strong demand for its energy drinks and soft beverages, especially in the U.S.
WHY IT IS IMPORTANT
The Snapple maker enjoyed resilient demand for its higher-priced ready-to-drink beverages, including Yoo-Hoo and Crush, and through the popularity of its majority-owned energy-drink maker, Ghost.
The company's results mirror those of bigger rivals PepsiCo's and Coca-Cola's, both of which
recently beat quarterly estimates on strong demand.
KEY QUOTE
"Though the back half will present new challenges, we are on track to deliver our 2025 outlook," said CEO Tim Cofer.
MARKET REACTION
Shares of Keurig Dr Pepper, which rose about 4% so far this year, were flat in premarket trading.
CONTEXT
Instability arising from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions has led to a decline in consumer spending.
Keurig also faces a direct risk from tariffs on its business in Canada and Mexico, especially due to the Canadian boycott of U.S. products, and the impact of tariff-driven coffee prices.
BY THE NUMBERS
Net sales for the quarter rose 6.1% to $4.16 billion, compared with estimates of $4.14 billion, according to data compiled by LSEG.
Keurig Dr Pepper posted an adjusted profit of 49 cents per share, in line with analysts' estimates.
The Sun Drop maker's volumes grew 5% compared to a 1.8% rise a year ago, with Ghost contributing 4 percentage points to the volume growth.
Net sales in the U.S. beverages segment rose 10.5% compared to a 3.3% rise in the year-ago quarter.
The company continues to expect annual net sales to grow in the mid-single-digit range and adjusted profit to grow in the high-single digits.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber)
