Aug 6 (Reuters) – Keurig Dr Pepper on Thursday left its annual forecasts unchanged after beating analysts’ estimates for second-quarter sales and profit, helped by strength in its sodas and energy drinks portfolios, even as it navigates weakness in its coffee business.
Shares of the beverage company rose about 2% in premarket trading. The stock has gained nearly 10% this year.
The better-than-expected results come as Keurig Dr Pepper works to reshape its business following its $18 billion acquisition of Dutch coffee and tea maker JDE Peet’s in April and prepares to separate its coffee and beverage operations into two U.S.-listed public companies.
CEO Tim Cofer said the company remained on track to meet its 2026 financial and operational targets and was continuing preparations for its planned separation in early 2027.
Sales in the U.S. Refreshment Beverages division, its primary growth driver, jumped 10% in the quarter, supported by strong demand for Dr Pepper, Ghost energy drinks and Electrolit hydration products.
The company’s U.S. coffee business remained under pressure from weakening demand and rising costs. Segment sales fell 3.2% in the quarter, hurt by an 8.2% decline in volume that more than offset a 5% increase in prices.
Like several packaged food and beverage companies, Keurig Dr Pepper has leaned on a combination of price hikes and cost-savings efforts to offset inflation at a time when consumers remain cautious about spending.
Keurig Dr Pepper’s net sales surged 75.6% to $7.31 billion, helped by the JDE Peet’s acquisition. Analysts on average expected $7.24 billion, according to data compiled by LSEG.
It earned a profit of 57 cents per share on an adjusted basis, above expectations of 54 cents per share.
Keurig Dr Pepper expects 2026 net sales in the range of $25.9 billion to $26.4 billion and adjusted earnings per share growth in a low double-digit range.
(Reporting by Savyata Mishra in Bengaluru; Editing by Joyjeet Das)
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