Core Insights - Keurig Dr Pepper Inc. will release its financial results for Q1 2025 on April 24, 2025, before market opens [1] - A conference call to discuss the results will be held on the same day at 7:30 AM (ET), hosted by the CEO and CFO [1] - The company has a strong beverage portfolio with over 125 brands and annual revenue exceeding $15 billion [4] Financial Results Announcement - The financial results for the first quarter ended March 31, 2025, will be disclosed before market opens on April 24, 2025 [1] - A conference call will take place on April 24, 2025, at 7:30 AM (ET) to discuss these results [1][2] Access Information - Investors can access the conference call by dialing specific numbers for the U.S., Canada, and international participants [2] - A replay of the call will be available from April 24, 2025, at 11:00 AM (ET) until May 8, 2025 [2] Company Overview - Keurig Dr Pepper is a leading beverage company in North America with a diverse portfolio and strong distribution capabilities [4] - The company holds leadership positions in various beverage categories, including carbonated soft drinks, coffee, and tea [4] - The company employs approximately 29,000 individuals and is committed to making a positive impact on communities and the planet [4]

It has been about a month since the last earnings report for Keurig Dr Pepper, Inc (KDP) . Shares have added about 1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Keurig Dr Pepper due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Sin ...

The Zacks Beverages – Soft Drinks industry offers a dynamic investment landscape shaped by promising growth opportunities and persistent cost pressures. On the growth front, evolving consumer preferences for healthier, functional and sustainable beverages present companies with opportunities to expand market share. Additionally, the industry is embracing digital transformation, with brands leveraging direct-to-consumer platforms, subscription models, and data-driven personalization to enhance consumer engag ...

Keurig Dr Pepper Inc. (KDP) has been gaining from brand strength and pricing for a while. The company’s expansion initiatives and efforts to innovate its products have been yielding. KDP has been making substantial strides to reshape its portfolio in a bid to deliver growth. The company is making significant progress on its multi-year strategic agenda. Strength in the International and U.S. Refreshment Beverages segments has been aiding results.KDP’s Growth Strategies AidThe company’s growth reflects a stra ...

Core Viewpoint - Keurig Dr Pepper (KDP) is undergoing a significant change in its board composition following a public offering of shares by JAB Holding Company, which will reduce JAB's ownership stake in KDP to approximately 10.7% [1][2][3] Group 1: Offering Details - JAB Holding Company will sell a total of 73,000,000 shares of KDP common stock, with an additional 10,950,000 shares available for purchase by the underwriter within 30 days [1] - Following the offering, JAB will be subject to a 90-day lock-up agreement regarding the remaining shares it holds [2] Group 2: Board Changes - Three board members affiliated with JAB, Joachim Creus, Frank Engelen, and Olivier Goudet, will resign from KDP's Board of Directors upon completion of the offering [3] - The resignation reflects JAB's reduced ownership stake and marks a transition in KDP's governance structure [3] Group 3: Company Outlook - JAB's CEO, Joachim Creus, expressed gratitude for KDP's performance over the past decade, highlighting the investment as one of JAB's most successful [4] - KDP's Executive Chairman, Bob Gamgort, emphasized the company's strong foundation and positive future outlook, noting the importance of this transaction in KDP's evolution as a public company [4] Group 4: Company Profile - KDP is a leading beverage company in North America with over 125 brands and annual revenue exceeding $15 billion [7] - The company holds leadership positions in various beverage categories, including carbonated soft drinks, coffee, tea, and water, and is known for its innovative partnership model [7]

Keurig Dr Pepper Inc. (NASDAQ:KDP) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Jane Gelfand - Senior Vice President, Finance Tim Cofer - Chief Executive Officer Sudhanshu Priyadarshi - Chief Financial Officer and President, International Conference Call Participants Chris Carey - Wells Fargo Peter Grom - UBS Steve Powers - Deutsche Bank Andrea Teixiera - JPMorgan Kaumil Gajrawala - Jefferies Filippo Falorni - Citi Operator Good morning, ladies and gentlemen and thank y ...

Core Insights - Keurig Dr Pepper exceeded market expectations in Q4 2024, reporting adjusted EPS of $0.58 and total revenue of $4.07 billion, surpassing estimates of $0.57 and $4.02 billion respectively [2][3] - The company faced challenges in its U.S. coffee segment, which saw a 2.4% decline in net sales, while the U.S. refreshment beverages segment experienced a 10.3% increase in net sales [6][8] Financial Performance - Adjusted EPS increased by 5.5% year-over-year from $0.55 in Q4 2023 to $0.58 in Q4 2024 [3] - Total net sales rose by 5.2% year-over-year from $3.87 billion in Q4 2023 to $4.07 billion in Q4 2024 [3] - Adjusted operating income was reported at $1.129 billion, a 2.5% increase from the previous year [3] - Free cash flow reached $687 million, marking a significant 380% increase year-over-year from $143 million [3][8] Business Overview and Strategy - Keurig Dr Pepper operates in a competitive beverage market, focusing on product innovation, strategic partnerships, and distribution network reinforcement to maintain its competitive edge [4] - Recent acquisitions, such as the energy drink brand Ghost, and partnerships have strengthened the company's position in high-growth categories [5][9] Segment Analysis - The U.S. refreshment beverages segment showed strong growth with a 10.3% increase in net sales, driven by positive volume/mix growth and favorable pricing [6] - The U.S. coffee segment faced a decline in net sales and a 5.7% drop in adjusted operating income due to pricing challenges and competitive pressures [6] - The international segment experienced a slight 0.8% increase in net sales, with an 8.5% growth when adjusted for currency effects, although adjusted operating income decreased by 8.6% due to inflationary pressures [7] Future Outlook - Management anticipates mid-single-digit net sales growth and high-single-digit adjusted EPS growth in constant currency for 2025, with a focus on the energy drink sector and other high-growth segments [11] - The company plans to continue investing in product innovation and market penetration, particularly in international markets, while adjusting pricing strategies in the U.S. coffee segment to address margin pressures [12]

Core Insights - Keurig Dr Pepper, Inc (KDP) reported revenue of $4.07 billion for the quarter ended December 2024, reflecting a 5.3% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.58, up from $0.55 in the same quarter last year, with an EPS surprise of +1.75% compared to the consensus estimate of $0.57 [1] Financial Performance - The reported revenue exceeded the Zacks Consensus Estimate of $4.03 billion by +0.96% [1] - Net Sales in U.S. Refreshment Beverages reached $2.44 billion, surpassing the three-analyst average estimate of $2.37 billion, with a year-over-year increase of +10.3% [4] - Net Sales in International markets were $499 million, slightly below the three-analyst average estimate of $515.04 million, showing a year-over-year change of +0.8% [4] - U.S. Coffee Net Sales were reported at $1.13 billion, which was below the three-analyst average estimate of $1.14 billion, reflecting a year-over-year decline of -2.4% [4] Stock Performance - Over the past month, shares of Keurig Dr Pepper have returned +7.2%, contrasting with the Zacks S&P 500 composite's -1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Retail and Sales Performance - KDP's largest retailer, Walmart, accounted for approximately 16% of consolidated net sales in 2024[37]. - Net sales increased by $537 million, or 3.6%, to $15,351 million for the year ended December 31, 2024, compared to $14,814 million in the prior year[172]. - Total net sales increased by 3.6% to $15,351 million for the year ended December 31, 2024, compared to $14,814 million in the prior year[182]. - U.S. Refreshment Beverages segment net sales rose by 5.8% to $9,331 million, while income from operations decreased by 24.4% to $1,878 million[183]. - U.S. Coffee segment net sales decreased by 2.6% to $3,967 million, with income from operations down by 6.8% to $1,079 million[186]. - International segment net sales increased by 6.8% to $2,053 million, with income from operations rising by 14.7% to $545 million[189]. Acquisitions and Investments - KDP acquired a controlling interest in GHOST, initially purchasing a 60% stake, with an agreement to buy the remaining 40% by 2028[32]. - The company entered into a definitive agreement to acquire a controlling interest in GHOST for approximately $1 billion, purchasing a 60% stake[165][166]. - The company actively evaluates investments in companies to fill whitespace in its beverage portfolio[19]. - The company is focused on future mergers and acquisitions to extend geographic coverage and enhance its product portfolio[211]. Product Innovation and Development - The company launched the Keurig K-Brew+Chill brewer featuring Quick Chill Technology, allowing iced beverages below 60 degrees[33]. - KDP's innovation pipeline includes new brewers and K-Cup pods to enhance household penetration and meet consumer preferences[31]. - The company is committed to innovation and product development to differentiate its offerings and maintain competitive positioning in the market[82]. Financial Performance - Gross profit rose by $449 million, or 5.6%, to $8,529 million for the year ended December 31, 2024[172]. - Net income decreased by $740 million, or 33.9%, to $1,441 million for the year ended December 31, 2024[172]. - Earnings per diluted share fell by $0.50, or 32.3%, to $1.05 for the year ended December 31, 2024[172]. - The effective tax rate increased to 24.7% for the year ended December 31, 2024, compared to 20.9% in the prior year[172]. - The company reported a gross margin of 55.6% and an operating margin of 16.9% for the year ended December 31, 2024[172]. - Income from operations decreased by $601 million, or 18.8%, to $2,591 million for the year ended December 31, 2024, primarily due to non-cash impairment charges[178]. Operational Challenges - The company faces risks related to supply chain disruptions, including increased commodity and transportation costs, which may adversely affect financial results[74]. - Labor market challenges, including shortages and increased turnover, could significantly impact the company's ability to attract and retain a skilled workforce[100]. - Rising employee benefit costs, particularly in healthcare and retirement programs, are expected to pressure profitability[102]. - The company is exposed to risks related to acquisitions and investments, which could affect expected revenue increases and operational results if not managed effectively[90]. - The company must successfully manage its information systems to avoid disruptions that could negatively affect business operations and financial performance[96]. Market and Consumer Trends - Consumer preferences are evolving, and failure to respond to these changes could adversely affect sales and growth[81]. - The beverage market experiences seasonal variations, with cold beverage sales peaking in warmer months and hot beverage sales in cooler months[58]. - The company faces intense competition in the beverage industry, which may negatively impact sales if unable to maintain or increase prices or effectively promote products[80]. Sustainability and Governance - The company is committed to transparency in its environmental, social, and governance initiatives, focusing on areas such as climate action and consumer health[66]. - The company is focusing on sustainability, particularly in packaging, to meet consumer demands and avoid potential sales declines[83]. - Concerns regarding plastic use and disposal may lead to increased costs and regulatory compliance, impacting product demand and overall business performance[127]. Risk Management - The company’s risk management system includes oversight from executive leadership and the Audit and Finance Committee regarding cybersecurity risks[142]. - The company is subject to ongoing cybersecurity risk assessments and training to mitigate potential threats and vulnerabilities[141]. - Cybersecurity risks from third-party service providers could disrupt business operations and adversely affect financial reporting and reputation[129]. - The company faces potential significant liabilities from ongoing litigation and legal proceedings, which could adversely affect its reputation and financial performance[125]. Employee and Workforce Management - The company has approximately 29,400 employees, with 22,400 in the U.S., 5,300 in Mexico, and 1,400 in Canada[59]. - The company’s employee benefits programs are designed to support the physical, mental, and financial health of employees, including access to medical and retirement benefits[62]. Capital Expenditures and Financial Commitments - Capital expenditures for property, plant, and equipment were $563 million in 2024, up from $425 million in 2023, indicating a 32.5% increase[205]. - The company authorized a share repurchase program of up to $4 billion over a four-year period starting January 1, 2022, aimed at returning value to shareholders[104]. - As of December 31, 2024, $1,810 million remained available for repurchase under the authorized share repurchase program of up to $4 billion[155].

Core Viewpoint - Keurig Dr Pepper, Inc (KDP) reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing an increase from $0.55 per share a year ago, indicating a positive earnings surprise of 1.75% [1][2] Financial Performance - The company achieved revenues of $4.07 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.96%, and up from $3.87 billion in the same quarter last year [2] - Over the last four quarters, KDP has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - KDP shares have increased approximately 6.2% since the beginning of the year, outperforming the S&P 500, which gained 1.7% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.40 on revenues of $3.67 billion, and for the current fiscal year, it is $2.03 on revenues of $16.21 billion [7] Industry Context - The Beverages - Soft drinks industry, to which KDP belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential challenges ahead [8]