(Reuters) - Beverage maker Keurig Dr Pepper (NASDAQ:KDP) beat Wall Street expectations for first-quarter sales and profit on Thursday, helped by steady demand for its high-priced sodas and tonic water.
Shares of the Burlington (NYSE:BURL), Massachusetts-based company were up about 3% in premarket trading.
Demand for the company's popular soft drinks like 7UP and Sun Drop citrus soda, and Schweppes tonic water held steady as lower-income consumers stretched their budgets to spend on at-home meals and beverages.
Price increases undertaken over the past quarters have helped beverage makers like Keurig Dr Pepper shield their margins from rising costs of coffee, a key source of the caffeine in their beverages.
The company's prices were up 3.1%, while volumes were flat in the quarter. Larger peer PepsiCo (NASDAQ:PEP) reported better-than-expected quarterly results earlier this week, but still saw volumes decline.
Keurig Dr Pepper posted adjusted profit of 38 cents per share for the quarter ended March 31, marginally above analysts' estimates of 35 cents per share.
The company posted net sales of $3.47 billion, compared to analysts' estimate of $3.41 billion according to LSEG data.
The ready-to-drink tea maker appointed Tim Cofer as CEO, succeeding Bob Gamgort, effective April 26.
Keurig Dr Pepper also reaffirmed its annual sales and profit forecast.