US – Keurig Dr Pepper Inc (KDP)., the Burlington-based beverage company, has released its financial results for the first quarter of 2023, showcasing a sequential improvement in its US Coffee segment despite challenges.  

The report also marks a significant leadership change as Robert J. Gamgort steps down as CEO and Timothy P. Cofer assumes the role of CEO. 

In the first quarter ended March 31, Keurig Dr Pepper’s US Coffee segment experienced a sales decline of 2.1 percent and a dip of 0.3 percent in volume/mix.  

However, the results represent an improvement from the previous fiscal year, with Timothy P. Cofer highlighting five reasons why the segment’s performance is expected to continue improving. 

Despite the decline in the US Coffee segment, KDP reported a net income of US$454 million, with sales companywide increasing by 3.5 percent to US$3.47 billion.  

Robert J. Gamgort, outgoing CEO said, “Momentum in our US Refreshment Beverages and International segments remained healthy, and US Coffee results showed meaningful sequential recovery.” 

As part of a previously announced leadership change, Gamgort transitioned to the role of executive chairman of the board of directors, effective April 26, while Cofer, previously the chief operating officer, assumed the position of CEO.  

Following the announcement, KDP’s stock on the Nasdaq closed at US$33.84 per share, up 4.6 percent from the previous day’s close. 

In the US Coffee segment, sales declined to US$911 million from US$931 million, driven by a net price decline and a slight drop in volume/mix.  

However, Cofer highlighted a sequential improvement in pod shipment trends and the growing market share of owned and licensed brands as positive indicators for the segment’s future performance. 

Additionally, Keurig and Keurig-compatible brewers continued to gain share in the coffee maker category, contributing to the company’s overall growth strategy.  

Cofer emphasized the importance of productivity in driving margin expansion and funding reinvestment, while also highlighting the strength of partnerships with brands like Lavazza Group, Brooklyn Roasting Co., and Kicking Horse. 

Earlier this year, KDP launched new proprietary K-Rounds plastic- and aluminum-free pods and Keurig Alta brewers, offering consumers a sustainable brewing option for a variety of hot and cold beverages. 

Gamgort said, “This system has the potential to redefine how consumers brew coffee for decades to come, and we’re excited to begin beta testing later this year.” 

While the US Coffee segment showed signs of improvement, KDP’s US Refreshment Beverages segment reported a 4.3 percent increase in sales, driven by new product launches like Dr Pepper Creamy Coconut and the restage of Bai WonderWater.  

In the International segment, net sales increased by 12 percent to US464 million from US$415 million, driven by volume/mix growth and net price realization.  

Overall, Keurig Dr Pepper remains focused on driving growth and innovation across its beverage portfolio, with Cofer expressing optimism for the company’s future performance in the coming quarters. 


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