Dr Pepper Snapple Group logged better-than-expected profit and
revenue growth in its first quarter, boosted by growing volumes
despite a drop-off in its namesake brand.
Dr Pepper has enjoyed recent growth in soda volume, somewhat
bucking the declines its rivals have suffered as consumers have
shied away from soda. Dr Pepper is also benefiting from less
overseas exposure than its peers.
In the latest quarter, Dr Pepper's sales volumes grew 2%. Its
overall bottler-case sales volume--which reflects beverages sold by
the company and its bottling partners--increased 3%, boosted in
part by a 13% increase in the Caribbean.
The company said its soda volume increased 3%. Its namesake soda
brand's volume declined 1% amid a drop-off in diet, while the
Squirt brand saw volumes increase 15%.
Noncarbonated beverages also posted a 5% volume improvement as
Snapple volume improved 5% and Hawaiian Punch volume increased
7%.
The results come as many soda companies struggle with
increasingly health-conscious consumers who are turning away from
soda.
Overall, for the period ended March 31, the company posted
earnings of $157 million, or 81 cents a share, up from $155
million, or 78 cents a share, a year earlier.
Sales rose 3.8% to $1.45 billion.
Analysts had projected 76 cents a share in earnings and $1.42
billion in revenue.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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