Dr Pepper Snapple (DPS) saw net income decline and revenue increase during the first quarter of 2018, according to a Form 10-Q filed with the Securities and Exchange Commission (SEC) this morning.
The Plano, Texas-based beverage giant also beat analysts’ projections by posting $1.59 billion in revenue for the three months ended on March 31, a positive sign as it prepares to complete its $19 billion merger with specialty coffee company Keurig Green Mountain, which is expected to be sometime in the second quarter.
The company did not hold a webcast or conference call for investors.
Net income fell to $159 million in the quarter, down from $177 million during the same period last year.
Packaged carbonated soft drink (CSD) volumes were up approximately 2 percent over Q1 2017, with Canada Dry gaining 16 percent over the past three months. Dr Pepper and A&W saw increases of 1 percent each, helping to offset a 3 percent decline in 7Up. Overall soda sales were up 4.2 percent to $883 million.
Non-carbonated beverages performed even better, recording 7 percent growth in volume and 4.2 percent growth in sales totaling $516 million for the quarter.
Distribution gains by sports drink BodyArmor and premium water Core also helped drive 32 percent growth within DPS’s allied brands portfolio, which had total sales of $147 million. Innovation and promotional activity, along with expanded distribution, saw Bai increase by 54 percent in the quarter. Mott’s (+5 percent), Snapple (+3 percent) and Clamato (+5 percent) all saw growing volumes; other non-carbonated drinks, including AriZona, an independent brand which is distributed by DPS, saw a 2 percent drop.
DPS also reported cash used for investment activities for the quarter, which primarily consisted of an $18 million investment in Core in January for 5.1 percent equity interest in the company, as well as purchases of property, plant and equipment totaling $41 million. It also listed cash paid in connection with its 2016 acquisition of Bai and $16 million spent on purchases of property, plant and equipment.