Dr Pepper Snapple Group Inc. reported better-than-expected
profit and revenue growth in its first quarter, helped again by
growing volumes in noncarbonated beverages.
The Plano, Texas, company has enjoyed recent growth in soda
volume while rivals have suffered as increasingly health-conscious
consumers shift away from soda. Dr Pepper, whose portfolio also
includes Hawaiian Punch and Clamato, among others, is also
benefiting from less overseas exposure than its peers.
In the latest quarter, its was noncarbonated beverages that
drove results. The category posted a 3% volume improvement as
Snapple volume jumped 11% and water volume grew 5%. Earlier this
week, rival Coca-Cola Co. similarly attributed second-quarter
improvement to noncarbonated drinks.
Carbonated soft drink volume, meanwhile, rose 1% as the
company's namesake soda brand's volume grew at a similar rate. A 6%
increase in Squirt volume and an 8% rise in Schweppes were offset
by mid-single digit volume declines in soda brands including 7UP
and Sunkist, the company said.
Sales volumes rose 1%. Overall bottler-case sales volume—which
reflects beverages sold by the company and its bottling
partners—also increased 1%, or 2% when adjusted for currency
fluctuations.
In all for the quarter ended June 30, Dr Pepper reported a
profit of $220 million, or $1.14 a share, up from $210 million, or
$1.06, a year earlier. Excluding a gain from an accounting
adjustment, per-share profit rose to $1.13. Revenue edged 1.5%
higher to $1.66 billion.
Analysts predicted $1.10 in earnings per share on $1.65 billion
in revenue.
The company lifted its full-year guidance, now projecting
earnings of $3.85 to $3.93 a share, up from its earlier view of
$3.80 to $3.88.
Shares in the company, up about 34% over the past 12 months,
were inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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