Keurig Dr Pepper Inc., which is bringing hundreds of jobs to Lehigh County, said Thursday that third-quarter sales rose 5.1% to $2.87 billion.
KDP was formed by the 2018 merger of Keurig Green Mountain and Dr Pepper Snapple Group. The sales increase was primarily a result of that combination.
Net income more than doubled to $304 million, up from $149 million in the year-ago quarter, also reflecting the merger. Net income under Generally Accepted Accounting Principles was 21 cents per share.
After removing the effects of one-time items, adjusted diluted net income per share was 32 cents, just above the analysts' estimate of 31 cents compiled by Zacks Investment Research. Company shares (NYSE: KDP) rose after Thursday's report.
Chief Executive Robert Gamgort said on a conference call Thursday morning that the company's goal is to provide "a beverage for every need," hot or cold, carbonated or still. The strategy in hot drinks is to convert drip coffee customers to single-serve K-cup pods.
KDP's coffee systems unit sales in the third quarter were $1.07 billion, packaged beverage sales were $1.31 billion, beverage concentrate sales were $360 million and Latin America beverage revenue totaled $138 million, the company said in a statement on its website.
The beverage company reaffirmed its 2019 year adjusted diluted earnings per share forecast of $1.20 to $1.22.
KDP will occupy about 1.5 million square feet for manufacturing and distribution operations at the former Kraft Heinz site in Upper Macungie Township, creating almost 400 jobs. That $220 million project was announced in September.
The company's many brands include Evian water, Mott's apple juice, Hires Root Beer, Hawaiian Punch, Swiss Miss, ReaLemon and 7Up. KDP has dual headquarters in Massachusetts and Texas.
KDP shares traded at $30.80, up about 9%, at 10:05 a.m. Thursday.