After the market closed on Monday, beverage giant Keurig Dr Pepper (KDP 1.34%) released first-quarter 2020 results that were good enough to excite investors. Quarterly net sales grew 4% year over year to $2.6 billion, and non-GAAP (adjusted) earnings per share (EPS) increased 16% to $0.29. Both numbers were slightly ahead of guidance.

While Q1 was good, shares are up after hours for a different reason. In a rare move this earnings season, Keurig Dr Pepper reaffirmed its guidance for 2020, citing the strength of its diversified beverage portfolio.

A carbonated soft drink is poured into a glass.

Image source: Getty Images.

A diversified business

With restaurant sales volume falling because of COVID-19, Keurig Dr Pepper's concentrate shipment volume was mildly impacted during the quarter. But the company has the advantage that only 12% of Q1 sales were concentrate sales. For perspective, 56% of Coca-Cola's first-quarter sales came from concentrates, with the rest coming from finished product.

Any weakness on the concentrate side of the business was made up in packaged beverages. Keurig Dr Pepper's packaged beverage sales increased 9% for the quarter, as consumer-discretionary spending gravitated toward pantry items like bottled water, juice, and soda. Coffee sales held steady.

While some might expect an impact on sales in coming quarters, Keurig Dr Pepper's management doesn't see it that way. It reaffirmed guidance for 2020, specifically mentioning its goals of $1.38 to $1.40 non-GAAP EPS and paying down debt throughout the year.