Core Insights - Keurig Dr Pepper Inc. (KDP) reported third-quarter 2024 results with earnings per share of 51 cents, in line with estimates, while sales of $3.89 billion missed expectations [1][2] - The company experienced year-over-year growth in both adjusted earnings and sales, driven by strong performance in the International and U.S. Refreshment Beverages segments [1][2] Financial Performance - Adjusted earnings per share grew 6.3% year over year, supported by increased adjusted operating income and a reduced share count, despite higher interest expenses [1] - Net sales increased 2.3% year over year but fell short of the Zacks Consensus Estimate, with a constant-currency improvement of 3.1% [2] - Adjusted gross profit rose 2.5% to $2.18 billion, with an adjusted gross margin expansion of 20 basis points to 56% [3] - Adjusted operating income increased 7.5% to $1.05 billion, with an adjusted operating margin expanding 110 basis points to 27% [3] Segment Performance - U.S. Refreshment Beverages segment sales reached $2.39 billion, up 5.3% year over year, driven by a 4% growth in volume/mix [4] - U.S. Coffee segment sales declined 3.6% to $976 million, with a volume/mix improvement of 2.7% offset by a 6.3% unfavorable net price realization [5] - International segment sales increased 0.4% to $525 million, with a constant-currency growth of 6.5% [5] Financial Health - As of September 30, 2024, KDP had cash and cash equivalents of $552 million, long-term obligations of $12.4 billion, and total stockholders' equity of $25 billion [6] - Net cash provided by operating activities for the first nine months of 2024 was $1.4 billion, with free cash flow amounting to $973 million [6] Forward Outlook - KDP reaffirmed its fiscal 2024 guidance, expecting mid-single digits constant-currency net sales growth and high single digits adjusted earnings per share growth [7]

For the quarter ended September 2024, Keurig Dr Pepper, Inc (KDP) reported revenue of $3.89 billion, up 2.3% over the same period last year. EPS came in at $0.51, compared to $0.48 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.92 billion, representing a surprise of -0.82%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.51.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number 001-33829 Keurig Dr Pepper Inc. (Exact name of registrant as specified in its charter) Delaware 98-0517725 (State or other jurisdiction of ...

Keurig Dr Pepper, Inc (KDP) came out with quarterly earnings of $0.51 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.45 per share when it actually produced earnings of $0.45, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Keurig Dr Pepper, which belongs to ...

Financial Data and Key Metrics Changes - Constant currency net sales grew by 3.1% in Q3 2024, with operating income increasing in the high single digits and EPS growing by 6% [11][37][40] - Consolidated volume mix improved by 3.5%, with gross margin expanding by 20 basis points year-over-year [11][39][40] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages net sales increased by 5.3%, driven by a 4% growth in volume mix and a 1.3% contribution from pricing [21][41] - U.S. Coffee segment experienced a decline in net revenue and operating income by 3.6% and 7.2% respectively, despite a 2.7% growth in volume mix [27][43][44] - International segment saw constant currency net sales growth of 6.5%, with volume mix increasing by 3.1% and net price realization adding 3.4% [33][47] Market Data and Key Metrics Changes - The energy drink category is valued at $23 billion and is one of the fastest-growing segments in beverages, appealing to a wide demographic including Gen Z [8][9] - In Mexico, market share grew in almost every category, with notable performance from the Penafiel and Squirt brands [34] Company Strategy and Development Direction - The company is focused on enhancing its portfolio through strategic acquisitions, such as the majority stake in Ghost, to strengthen its position in the energy drink category [6][10] - The strategy includes a portfolio approach to address distinct consumer needs and occasions, leveraging existing brands like C4 and Black Rifle [60][62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of the coffee category despite current sluggishness, emphasizing a focus on controllable factors [73][74] - The company anticipates a strong finish to 2024 and is preparing for continued growth in 2025, with a balanced view of opportunities and risks [55][56] Other Important Information - The company announced a 7% dividend increase, marking its fourth consecutive year of dividend growth [50][51] - The transition of Ghost's distribution from Anheuser Busch to KDP is expected to begin in mid-2025 [98] Q&A Session Summary Question: Can you discuss how the portfolio works together in Energy? - Management highlighted the complementary nature of brands like C4 and Ghost, addressing different consumer needs and occasions while generating scale [60][62] Question: What does KDP bring to Ghost that can enhance its market position? - KDP's strengths include increased distribution points, marketing capabilities, and operational efficiencies, which have previously doubled the business for C4 [66][68] Question: How durable are the current industry headwinds in the coffee segment? - Management remains bullish on coffee's long-term prospects, focusing on market share gains and strategic pricing to offset current challenges [73][74] Question: Were there any impacts from storms on shipments during the quarter? - Management acknowledged that hurricanes affected operations at the end of the quarter, particularly impacting coffee segment performance [84] Question: How is the company prepared to handle increased complexity from new acquisitions? - Management expressed confidence in their infrastructure and past investments, indicating readiness to integrate new brands like Ghost [92][96]

Financial Performance - Q3 2024 net sales increased 2.3% to $3.89 billion, with constant currency growth of 3.1% driven by volume/mix growth of 3.5%[3] - Diluted EPS for Q3 2024 was $0.45, reflecting a 21.6% increase year-over-year, while adjusted diluted EPS rose 6.3% to $0.51[5] - GAAP operating income for Q3 2024 increased 0.7% to $902 million, with adjusted operating income up 7.5% to $1,050 million, representing 27.0% of net sales[4] - Net sales for Q3 2024 reached $3,891 million, a 2.3% increase from $3,805 million in Q3 2023[22] - Gross profit for Q3 2024 was $2,140 million, compared to $2,111 million in Q3 2023, reflecting a gross margin improvement[22] - Net income for the first nine months of 2024 was $1,585 million, up from $1,488 million in the same period of 2023, representing a 6.5% increase[26] - The company’s total net sales for the first nine months of 2024 were $11,281 million, compared to $10,947 million in the same period of 2023, indicating a 3.0% increase[28] - For Q3 2024, reported gross profit was $2,140 million with a gross margin of 55.0%[36] - Adjusted gross profit for Q3 2024 increased to $2,178 million, reflecting a gross margin of 56.0%[36] - Net income for Q3 2024 was $616 million, translating to diluted earnings per share of $0.45[38] - Adjusted net income for Q3 2024 was $694 million, with diluted earnings per share of $0.51[38] - For the first nine months of 2024, reported net income was $1,585 million, with diluted earnings per share of $1.16, reflecting a 23.4% effective tax rate[48] - Adjusted diluted earnings per share for the first nine months of 2024 was $1.34, compared to $1.24 in the same period of 2023[48] Segment Performance - U.S. Refreshment Beverages segment net sales grew 5.3% to $2.4 billion, driven by volume/mix growth of 4.0% and higher net price realization of 1.3%[7] - U.S. Coffee segment net sales decreased 3.6% to $1 billion, with unfavorable net price realization of 6.3% offsetting volume/mix growth of 2.7%[8] - International segment net sales increased 0.4% to $0.5 billion, with constant currency growth of 6.5% driven by volume/mix growth of 3.1%[9] - U.S. Refreshment Beverages segment net sales for Q3 2024 were $2,390 million, up from $2,270 million in Q3 2023, a growth of 5.3%[28] - U.S. Refreshment Beverages segment reported a 4.3% increase in net sales for the first nine months of 2024, while U.S. Coffee segment experienced a decline of 2.6%[52] - The International segment saw a net sales increase of 8.9%, with a constant currency adjusted growth of 9.5% for the first nine months of 2024[52] Cash Flow and Expenses - Operating cash flow for Q3 2024 was $628 million, with free cash flow totaling $503 million[5] - The company incurred interest expense of $106 million in Q3 2024, a decrease from $237 million in Q3 2023, reflecting improved debt management[22] - The company incurred $24 million in restructuring costs related to network optimization in Q3 2024[40] - The company incurred $111 million in productivity-related costs during the first nine months of 2024, impacting adjusted income from operations[50] - Free cash flow for the first nine months of 2024 is $973 million, compared to $770 million for the same period in 2023[61] - The company reported a net cash provided by operating activities of $1,370 million for the first nine months of 2024[61] - The company has made purchases of property, plant, and equipment totaling $398 million during the first nine months of 2024[61] Guidance and Future Outlook - The company reaffirmed its fiscal 2024 guidance for constant currency net sales growth in a mid-single-digit range and adjusted diluted EPS growth in a high-single-digit range[10] - The company anticipates continued growth in the International segment, projecting a 22.3% increase in adjusted income from operations[50] Debt and Liabilities - Total current assets increased to $4,102 million as of September 30, 2024, up from $3,375 million at the end of 2023[24] - Total liabilities rose to $27,749 million as of September 30, 2024, compared to $26,454 million at the end of 2023[24] - Cash and cash equivalents increased significantly to $552 million from $267 million at the end of 2023[24] - Total principal amounts of commercial paper notes and senior unsecured notes are $15,036 million, with cash and cash equivalents of $552 million[56] Operational Efficiency - The company emphasized disciplined overhead expense management and productivity savings as key drivers of adjusted operating income growth[4] - The total operating margin for Q3 2024 improved to 27.0%, up from 25.9% in Q3 2023[43][44] - Adjusted income from operations for the first nine months of 2024 was $2,528 million, representing a 11.3% increase compared to the previous year[50] - Keurig Dr Pepper's adjusted income from operations for the first nine months of 2024 was $2,845 million, with an operating margin of 25.2%[46] - The management leverage ratio stands at 3.2 as of September 30, 2024[56] Other Financial Metrics - Adjusted EBITDA for the last twelve months is $4,560 million, reflecting an increase from $4,251 million[58] - Net income for the last twelve months is $2,278 million, with interest expense at $552 million and provision for income taxes at $689 million[58] - Depreciation expense for the last twelve months is $413 million, with other amortization at $185 million[58] - Items affecting comparability in the adjusted EBITDA include restructuring costs of $24 million and productivity improvements of $154 million[58]

Q3 Performance Led by Strong U.S. Refreshment Beverages and International MomentumAnnounced Acquisition of GHOST Advances Position in Attractive Energy Drink SpaceCompany Reaffirms 2024 Constant Currency Net Sales and Adjusted EPS OutlookBURLINGTON, MA and FRISCO, TX, Oct. 24, 2024 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the third quarter of 2024 and reaffirmed its full year guidance.Reported GAAP Basis Adjusted Basis1 Q3 YTD Q3 YTD Net Sales $3.89 bn $11.28 bn $3.89 b ...

Addition of fast-growing brand accelerates KDP's portfolio evolution towards consumer-preferred spacesDisciplined transaction creates win-win alignment between GHOST and KDPBURLINGTON, Mass., and FRISCO, Tex., and LAS VEGAS and CHICAGO, Oct. 24, 2024 /PRNewswire/ -- Keurig Dr Pepper (NASDAQ: KDP) today announced that it has entered into a definitive agreement to acquire GHOST Lifestyle LLC and GHOST Beverages LLC (collectively "GHOST"). Founded in 2016, GHOST® is a lifestyle sports nutrition business with a ...

Keurig Dr Pepper Inc. (KDP) is set to release third-quarter 2024 results on Oct. 24, before the market opens. Analysts are anticipating another decent performance from this beverage and coffee company, with revenues and earnings per share expected to increase year over year. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. For third-quarter revenues, the Zacks Consensus Estimate is pegged at $3.9 billion, indicating a 3.2% increase from the prior-year quarter's figure. The consensus ...

Keurig Dr Pepper, Inc (KDP) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 24, 2024, might help the stock move higher if these key numbers are ...