Keurig Dr Pepper beat Wall Street expectations for first-quarter sales, it was reported on Thursday.
Steady demand in spite of price hikes for its soft drinks and tonic water buoyed the drinks manufacturer.
Shares for the company were up about 3% in pre-market trading.
Branded Products In Place Of Dining Out
Demand for the company’s drinks, which include 7UP and Schweppes tonic water, held steady, as lower-income households stretched their budgets for pricier branded products in place of dining out.
Price increases over the past quarters have helped beverage-makers such as Keurig Dr Pepper and PepsiCo shield their margins against higher production costs.
The company’s prices went up by 3.1%, while volumes stayed flat in the measured quarter.
PepsiCo earlier this week reported better-than-expected quarterly results, but it saw volumes decline.
Other companies have not been as successful, with Nestlé reporting that price hikes caused the packaged-goods giant to miss sales estimates.
Cents Per Share
Keurig Dr Pepper posted an adjusted profit of 38 cents per share for the quarter ending 31 March.
This was marginally above analysts’ expectations of 35 cents per share.
The company posted net sales of $3.57 billion, above analysts’ forecast of $3.41 billion, according to the London Stock Exchange.
Keurig Dr Pepper has appointed Tim Cofer as its chief executive, effective from today, 26 April.
The company also reaffirmed its annual sales-and-profit forecast.
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