Dr Pepper Snapple Group Inc reported a much higher-than-expected jump in quarterly profit on Thursday and raised its full-year outlook, citing lower costs for packaging and ingredients.

The company's higher-end noncarbonated drinks, such as Snapple, continued to suffer as consumers cut back. Still, overall beverage volume rose 4 percent in the United States and Canada, and Dr Pepper's soft drinks gained market share.

Shares of the maker of Sunkist, 7UP, Canada Dry and A&W sodas rose more than 7 percent.

Net income increased to $158 million, or 62 cents per share, in the second quarter, from $108 million, or 42 cents per share, a year earlier.

Analysts on average were expecting 50 cents per share, according to Reuters Estimates.

Dr Pepper Snapple's report follows better-than-expected quarterly results from larger rivals Coca-Cola Co and PepsiCo Inc.

Net sales fell 4 percent to $1.48 billion. Excluding the impacts of currency fluctuations and lost sales from no longer distributing Hansen Natural Corp drinks, sales rose 3 percent, helped by price increases and a 3 percent gain in volume.

Volume rose 4 percent for Dr Pepper and fell less than 1 percent for 7UP, Canada Dry and A&W. Sunkist volume declined at a high-single-digit percentage rate.

Snapple's volume fell 15 percent, but that was not as steep as the first quarter's 22 percent drop.

The company now expects 2009 earnings of $1.88 to $1.96 per share, excluding items, up from a prior forecast for $1.70 to $1.78.

The new outlook reflects lower costs, a reduction in the company's full-year tax rate and certain investments in the second half of the year. Dr Pepper also said it expected to reduce its debt obligations by at least $475 million this year, $75 million more than it previously anticipated.

Canada