Feb 25 (Reuters) - Keurig Dr Pepper ( KDP ) on Tuesday

forecast annual profit above Wall Street expectations, after

beating fourth-quarter revenue and profit estimates, aided by

strong demand for its higher-priced beverages including sodas

and sports drinks.

WHY IT IS IMPORTANT

The Yoo-hoo chocolate drink maker enjoyed steady sales as

consumers indulged in its pricier products, swayed by the

burgeoning popularity of its energy drinks and keen promotional

efforts.

Keurig Dr Pepper ( KDP ) has been introducing new flavor variants to

its lineup, including the recently launched Dr Pepper Blackberry

and 7 Up Tropical, to hold consumer attention amid dense

competition.

Earlier this month, larger rival Coca-Cola had

surpassed its profit and revenue expectations on the back of

price hikes.

MARKET REACTION

Shares of Keurig Dr Pepper ( KDP ), which fell about 4% in 2024,

were up nearly 3% in premarket trading.

BY THE NUMBERS

Keurig Dr Pepper ( KDP ) expects its annual adjusted profit to grow

in the high-single digits, compared with analysts' average

estimate of a 6.2% growth, according to data compiled by LSEG.

The company expects mid-single digits growth in annual net

sales, compared with estimates of a 5.6% rise.

The Sun Drop maker posted an adjusted profit of 58 cents per

share for the quarter ended December 31, narrowly beating

estimates of 57 cents.

Net sales rose 5.2% to $4.07 billion in the fourth quarter,

topping estimates of $4.02 billion.

The company's average selling prices rose 0.9%, while its

unit case volumes increased 5.3%.

However, high prices of coffee have affected the company's

U.S. coffee segment, its second largest unit.

The unit's net sales were down 2.4% in the fourth quarter.