(Reuters) - Keurig Dr Pepper (NASDAQ:KDP) missed market expectations for fourth-quarter sales on Thursday as higher product prices deterred demand for the beverage maker's sodas and tonic water.
Beverage makers have been hiking prices in a bid to counter soaring costs of commodities like coffee and sugar, but sticky inflation has turned consumers frugal, leading to softer volumes for soda makers including Keurig and bigger rival Pepsico (NASDAQ:PEP).
Keurig Dr Pepper posted quarterly net sales of $3.87 billion, compared with analysts' average estimate of $3.91 billion, according to LSEG data, its first quarterly sales miss in five.
In fiscal 2023, its volumes fell 2.1%, while prices were up 7%, resulting in adjusted gross profit margin growth of 150 basis points.
The 7UP soda maker's quarterly adjusted profit came in at 55 cents per share, compared with estimates of 54 cents.
Net sales at its U.S. coffee business, one of its core segments, fell 9.9% to $1.2 billion, as volumes fell 10.7% amid a slowdown in at-home coffee consumption globally.
The company also forecast fiscal 2024 adjusted profit per shares above estimates.