Keurig Dr Pepper posts strong financialsPlastics in Packaging


Keurig Dr Pepper (KDP) has reported strong financial results for the third quarter ended September 30, 2020 and strengthened guidance for the full year.

The beverage group’s net sales in the third quarter of 2020 increased 5.2 per cent to $3.02 billion, compared with $2.87bn in the year-ago period. On a constant currency basis, net sales advanced 5.8 per cent, reflecting strong volume/mix growth of 6.6 per cent, partially offset by lower net price realisation of 0.8 per cent. Covid-19 continued to have a significant impact on the beverage industry, requiring KDP to navigate the challenging environment to deliver growth in the quarter.

In Coffee Systems, double-digit dollar growth in K-Cup coffee pods for at-home consumption was partially offset by weakness in the office coffee channel, as elevated work-from-home trends persisted throughout the quarter. Keurig brewers posted exceptional growth, driven by successful innovation and retailer inventory stocking ahead of the holiday season.

Net sales in the division were $1.10bn, compared with $1.07bn a year ago, primarily reflecting higher volume/mix of 6 per cent, partially offset by lower net price realisation of 2.8 per cent.

Broad-based market share expansion drove net sales in the majority of the segment’s Packaged Beverages portfolio. Growth in large-format channels continued to be strong, and performance in the convenience and gas channels improved sequentially during the quarter, as consumer mobility increased.

Net sales for the quarter in Packaged Beverages advanced 10.7 per cent to $1.45bn, compared with $1.31bn a year ago, reflecting strong volume/mix growth of 11.4 per cent, partially offset by lower net price realisation of 0.7 per cent. The net sales performance was driven by market share growth across the portfolio with particular strength in CSDs, premium unflavoured water, juice and juice drinks, apple sauce and mixers, partially offset by enhanced flavoured premium water, due to continued softness in convenience and gas channels.

Performance improved significantly from the previous quarter in Beverage Concentrates, declining slightly versus the prior year, reflecting a sequential reopening of quick-serve and other fast-casual restaurants, which are serviced by the fountain foodservice component of the business.

Net sales for the third quarter in Beverage Concentrates decreased 2.2 per cent to $352m, compared with $360m a year ago, reflecting unfavourable volume/mix of 4.8 per cent.

Commenting on the announcement, chief executive Bob Gamgort said: “Since the beginning of the pandemic, our broad beverage portfolio, unique route to market capabilities and resilient and dedicated team members have enabled KDP to successfully navigate through the challenging and volatile operating environment.

“In the third quarter, we…



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