0001628280-26-031302
SEC filingQ1 results showed revenue and profitability growth from strong volume performance and annual pricing actions, plus an Easter holiday shift, delivering operating leverage despite Still category price/mix headwinds from Dasani and Protein supply constraints.
Net sales grew 16.9% to $1.8 billion in Q1 2026 from $1.6 billion in the prior year, primarily driven by strong volume performance and annual pricing actions executed during the quarter, along with a favorable shift in the Easter holiday timing. This topline expansion reflects our revenue management strategy, which optimizes pricing across brands, packages, categories, and channels while fostering strong customer relationships and disciplined decision-making.
Gross profit increased 15.9% to $727.1 million, representing a 39.4% margin on the higher revenue base. While topline momentum supported profitability, price/mix in the Still category faced unfavorable impacts from elevated Dasani casepack volumes and slowing Protein category volumes due to supply constraints. These dynamics highlight ongoing category-specific challenges amid robust overall volume growth.
Operating income advanced 25.1% to $237.5 million, achieving a 12.9% margin, as the company realized meaningful operating leverage from revenue gains that outpaced expense growth. Selling, delivery, and administrative expenses rose partly due to labor cost increases from annual wage adjustments and investments in front-line teammate base wages effective since Q3 2025. This discipline underscores effective cost management relative to topline expansion.
Net income rose 7.7% to $111.6 million from $103.6 million, reflecting the operating strength tempered by non-operating factors. The results demonstrate resilience in core operations amid a dynamic input and macroeconomic environment.