Keurig Dr Pepper reports strong earnings in its first quarter as a combined company
Keurig Dr Pepper reported net sales of US$2.73bn in its third-quarter, its first results following the merger of Keurig Green Mountain and Dr Pepper Snapple.
During the quarter, the beverage firm completed its acquisition of soft drink Big Red, and it also inked a deal to acquire Core Nutrition, a fast-growing brand in the enhanced water segment.
Net sales more than doubled compared to a year ago, partly reflecting the impact of the merger.
Meanwhile, operating income also increased by 45% to US$4mn, compared to US4238mn during the same period last year.
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Since the end of the merger, Keurig Dr Pepper said it has repaid around US$550mn of debt “due to strong operating profit results and effective working capital management.”
CEO Bob Gamgort said that Keurig Dr Pepper was "off to a great start as a combined company.”
He added: “Our new organization is working well and delivered a strong quarter, with both top- and bottom-line growth and market share strength across our major categories.
“We also repaid approximately $550 million of debt since the merger close.
“We remain confident in our outlook for 2018 and the long-term value creation framework we shared at the time of the announcement of the merger."
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