(Reuters) -Keurig Dr Pepper raised its forecast for annual sales on Monday, banking on resilient demand for its energy drinks and carbonated soft beverages in markets including the United States.
Shares of the company, which also beat third-quarter sales estimates, were up about 4% in premarket trading.
U.S. beverage makers are seeing a boost in sales, especially for healthier drinks and low-calorie juices, as consumers opt for wellness-focused options amid the growing popularity of weight-loss drugs and the ‘Make America Healthy Again’ movement under the Trump administration.
“Strong innovation and in-market execution drove market share gains across key categories, with sales momentum, along with disciplined actions to offset inflationary pressures, contributing to solid earnings and free cash flow growth,” CEO Tim Cofer said.
Net sales in Keurig Dr Pepper’s U.S. refreshment beverages segment rose 14.4% in the reported quarter, while U.S. coffee segment saw 1.5% increase.
Price hikes in recent quarters helped the company protect margins from rising tariff-related costs, including on coffee.
Its total prices were up about 4.2%, while volumes grew 6.4%, compared to a year ago.
Activist investor Starboard Value has been building a stake in Keurig Dr Pepper after the beverage maker in August announced plans to buy European coffee maker JDE Peet’s for about $18 billion.
The deal would partly reverse the 2018 merger that created Keurig Dr Pepper, allowing investors to focus on a single segment instead of a diverse product mix.
The company now expects 2025 full-year net sales to grow in a high-single-digit, up from its earlier mid-single-digit range, while keeping its profit forecast unchanged.
Keurig Dr Pepper’s quarterly sales of $4.31 billion beat analysts’ estimates of $4.15 billion, according to data compiled by LSEG.
Its adjusted profit of 54 cents per share came in line with Wall Street estimates.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shailesh Kuber)
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