Keurig Dr Pepper Inc ( KDP ) shares are trading higher after the company reported first-quarter FY24 sales growth of 3.5% year-on-year to $3.47 billion, beating the analyst consensus estimate of $3.407 billion.

U.S. Coffee sales decreased 2.1% to $0.9 billion, U.S. Refreshment Beverages rose 4.3% to $2.1 billion, and International climbed 11.8% to $0.5 billion.

Gross profit increased 11% to $1.94 billion, with the margin expanding from 52% to 55.9%. Selling, general and administrative expenses grew 1% to $1.2 billion.

Operating margin was 22%, and operating income for the quarter increased 31% to $765 million.

The company held $317 million in cash and equivalents as of March-end. Operating cash flow for the quarter totaled $85 million. Inventories as of March totaled $1.2 billion.

Adjusted EPS of $0.38 beat the consensus estimate of $0.35. 

As announced earlier, Tim Cofer assumed the CEO role and board member effective April 26; Bob Gamgort will serve as executive chairman.

Outlook: Keurig reaffirmed FY24 constant currency net sales growth in a mid-single-digit range and Adjusted diluted EPS growth in a high-single-digit range. 

Price Action: KDP shares are trading higher by 5.16% at $34.01 in premarket at the last check Thursday.