Keurig Dr Pepper Inc. (Nadaq: KDP) on Oct. 28 reported strong and balanced financial results for its third quarter, ended Sep. 30, 2021, and raised its guidance for net sales growth, now expected in the 7% to 8% range. The beverage company reaffirmed its guidance for adjusted diluted EPS growth in the 13% to 15% range for the year.
KDP's net sales for the third quarter of 2021 increased 7.6% to $3.25 billion, compared with $3.02 billion in the year-ago period, driven by growth in each business segment, with beverage concentrates and Latin America beverages posting double-digit growth. On a constant currency basis, net sales advanced 6.8% in the quarter, reflecting higher volume/mix of 3.2% and favorable net price realization of 3.6%. On a two-year basis, year-to-date constant currency net sales advanced 13.3% versus the first nine months of 2019.
KDP's in-market performance in the liquid refreshment beverages category remained strong in the quarter, with retail dollar consumption advancing 6.8% across the company's cold beverage retail base, reflecting strength in CSDs, premium unflavored water, enhanced flavored water, coconut water, apple juice and apple sauce. This performance was driven by Dr Pepper, Sunkist, Canada Dry, A&W and Squirt CSDs, Evian, Bai, Vita Coco, Polar and Mott's apple juice and apple sauce. On a two-year stacked basis, KDP gained market share in nearly 75% of its cold beverage retail base and grew consumption of its cold beverage portfolio by 23%.
In coffee, retail consumption of single-serve pods manufactured by KDP in IRi tracked channels increased 4.3% and dollar market share remained strong, advancing to 83% in the quarter. Performance in the away-from-home business improved versus the year-ago shelter-in-place environment, although the increase in overall consumer mobility has not yet fully translated into a broad return to offices. On a two-year stacked basis, retail consumption of single-serve pods manufactured by KDP increased 16% in IRi tracked channels.
"In the quarter, we continued to effectively manage through macro challenges to deliver strong and balanced results," said KDP chairman and chief executive Bob Gamgort. "We are now entering the final quarter of our three-year, post-merger period with excellent top-line momentum and are on track to deliver or exceed our original merger commitments. Our outlook for the business remains strong, as we look forward to our next chapter of transformation and growth."
See Keurig Dr Pepper Inc. full third-quarter news announcement on PR Newswire.