BURLINGTON, Mass. and FRISCO, Texas, April 29, 2021 /PRNewswire/ — Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported financial results for the first quarter ended March 31, 2021 and increased its outlook for 2021 net sales growth to 4% to 6%, from the Company’s prior net sales guidance of 3% to 4%. KDP also reaffirmed its guidance for full-year Adjusted diluted EPS growth of 13% to 15%.
Net sales in the first quarter of 2021 advanced approximately 11% on both a GAAP and constant currency basis, with each of the Company’s business segments reporting strong growth. GAAP diluted earnings per share more than doubled to $0.23 and Adjusted1 diluted EPS grew to $0.33, a double-digit increase versus year-ago.
Commenting on the announcement, Chairman and CEO Bob Gamgort stated, “We delivered an exceptional first quarter, driving double-digit net sales and earnings growth, behind outstanding in-market execution. Looking forward, we see an improving, but volatile, macro environment marked by increasing consumer mobility and rising inflationary headwinds. We remain focused on delivering our business plan, with increased net sales growth expectations and growing confidence in achieving our Adjusted diluted EPS growth target of 13% to 15% for the year, and we plan to reinvest any earnings upside in the business to drive future growth.”
First Quarter Consolidated Results
Net sales for the first quarter of 2021 increased 11.1% to $2.90 billion, compared to $2.61 billion in the year-ago period, driven by strong growth in each business segment, particularly Coffee Systems. On a constant currency basis, net sales advanced 10.8%, reflecting higher volume/mix of 10.3% and favorable net price realization of 0.5%.
KDP in-market performance in the quarter remained strong, with retail dollar consumption2 advancing 9.4% across the Company’s cold beverage retail base, with particular strength in CSDs3, premium unflavored water, teas, juice drinks, apple juice, vegetable juice, mixers, and coconut water. This performance reflected the strength of Dr Pepper, Canada Dry, A&W, 7UP, and Sunkist CSDs, CORE hydration, Snapple teas and fruit drinks, Clamato vegetable juice, Motts apple juice, and Vita Coco. On a two-year stacked basis, consumption of KDP’s cold beverage portfolio increased 17%.
In coffee, retail consumption of single-serve pods manufactured by KDP in IRi tracked channels increased 3.9% in the quarter and dollar market share advanced to 83%. In untracked channels, accelerated e-commerce growth of K-Cup pods continued in the quarter, more than offsetting declines in the away-from-home office and hospitality businesses. On a two-year stacked basis, retail consumption of single-serve pods manufactured by KDP increased 11% in IRi tracked channels.
GAAP operating income increased 37% to $640 million in the first quarter of 2021, compared to $466 million in…