Keurig Dr Pepper (KDP -4.03%) is ready to push its soda and coffee portfolio to the next level. The consumer beverage giant on Thursday reported solid sales and profit results for fiscal 2019 while predicting faster gains to come thanks to robust demand for many of its key franchises.
Sales rose 3.2% for the full year after accounting for currency exchange shifts and the temporary impact of merger charges. That result included market share gains in the core soft drink portfolio and in niches like bottled water, fruit juices, and coffee.
Keurig Dr Pepper achieved significant gains in its manufactured coffee pods thanks in part to major distribution agreements with McDonald's and Starbucks. "We delivered strong performance for 2019," CEO Bob Gamgort said in a press release, "with sales growth in all four segments and [earnings per share] growth above our ... target range ."
The strong finish to the year has given management confidence to predict more improvements, with sales slated to rise between 3% and 4% in 2020. The company is expecting a busy year for partnerships and for investments throughout its supply chain and manufacturing footprint. Yet adjusted earnings should still rise between 13% and 15%, supported by rising prices and continued cost savings from the 2018 merger that brought Keurig and Dr Pepper under the same corporate umbrella.