KDP Keurig Dr Pepper Inc

   By Micah Maidenberg 
 

Keurig Dr Pepper Inc. said sales volumes rose in the first quarter as consumers stayed home and stocked up because of the coronavirus pandemic.

The maker of carbonated drinks, including Dr. Pepper, 7UP and Squirt, as well as Keurig coffee systems, on Monday reported sales of $2.61 billion for the quarter, up from $2.5 billion last year.

Analysts polled by FactSet predicted the company would generate $2.55 billion in sales for the latest period.

First-quarter profit fell to $156 million, or 11 cents a share, from $230 million, or 16 cents a share, last year. An $86 million non-cash impairment charge on an equity investment weighed on operating profit, the company said.

Excluding restructuring expenses, the investment impairment and some other costs, the company reported an adjusted profit of 29 cents a share for the latest quarter, 2 cents more than Wall Street forecasts.

Keurig Dr. Pepper said volumes sold during the first quarter rose 5%, but prices slipped 0.5%.

The volume growth "reflected particular strength in the packaged beverages segment, which included a benefit from the impact of Covid-19 late in the quarter," the company said.

However, those gains were offset in part by a slowdown in demand from its foodservice business within its beverage concentrates unit.

Consumers have been filling their pantries to eat and drink more at home as restaurant dining rooms remain closed because of the coronavirus pandemic.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

April 27, 2020 16:49 ET (20:49 GMT)

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