Keurig Dr Pepper(US:KDP)2024-07-25 13:23Financial Performance - Basic earnings per share increased to $0.38 from $0.36 year-over-year, while diluted earnings per share also rose to $0.38 from $0.36[10]. - Net income for the quarter was $503 million, compared to $467 million in the previous quarter, reflecting a growth of approximately 7.7%[11]. - The company reported a net income of $515 million for Q2 2024, compared to $503 million in Q2 2023, marking a 2.4% increase[79]. - For the first six months of 2024, net income totaled $969 million, slightly down from $970 million in the same period of 2023[184]. - Basic and diluted EPS for Q2 2024 were both $0.38, compared to $0.36 in Q2 2023, representing a 5.6% increase[79]. - Basic earnings per share for the first half of 2024 was $0.71, compared to $0.69 in the previous period, showing an increase[10]. - Diluted earnings per share also improved to $0.70 from $0.69, reflecting enhanced profitability per share[10]. Revenue and Sales - Total net sales for the company in Q2 2024 were $3,922 million, compared to $3,789 million in Q2 2023, marking an increase of 3.5%[70]. - U.S. Refreshment Beverages segment net sales reached $2,407 million in Q2 2024, up from $2,330 million in Q2 2023, representing a growth of 3.3%[70]. - U.S. Coffee segment net sales decreased to $950 million in Q2 2024 from $970 million in Q2 2023, a decline of 2.1%[70]. - International segment net sales increased to $565 million in Q2 2024 from $489 million in Q2 2023, reflecting a growth of 15.6%[70]. - For the first six months of 2024, net sales increased by $248 million, or 3.5%, to $7,390 million compared to $7,142 million in the prior year[146]. - Net sales increased by 3.8% to $4,500 million in the first six months of 2024, compared to $4,337 million in the prior year period, driven by a favorable net price realization of 4.2%[162]. Expenses and Costs - Selling, general and administrative expenses increased by $23 million, or 1.8%, to $1,295 million for Q2 2024 compared to Q2 2023[129]. - Total lease costs for the first six months of 2024 amounted to $180 million, compared to $149 million in the same period of 2023, an increase of 20.8%[62]. - Interest expense increased by $32 million, or 18.6%, to $204 million for Q2 2024, reflecting increased weighted average borrowings[131]. - Interest expense rose by $187 million to $382 million for the first six months of 2024, primarily due to increased borrowings[150]. Assets and Liabilities - Total stockholders' equity as of June 30, 2024, was $25,268 million, up from $25,126 million as of January 1, 2023, indicating an increase of 0.6%[11]. - Total current assets increased to $3,819 million as of June 30, 2024, compared to $3,375 million at the end of 2023[174]. - Total liabilities increased to $27,626 million as of June 30, 2024, compared to $26,454 million at the end of 2023[174]. - Current liabilities decreased to $5,662 million from $6,749 million, suggesting better short-term financial health[203]. - Non-current liabilities increased to $19,423 million from $16,689 million, which may require monitoring[203]. Cash Flow and Investments - Net cash provided by operating activities was $742 million for the first six months of 2024, compared to $452 million in the prior year period[176]. - Cash and cash equivalents increased to $438 million at the end of the first six months of 2024, up from $278 million at the end of the same period in 2023[185]. - Investments in unconsolidated affiliates increased to $1,468 million as of June 30, 2024, up from $1,387 million at the end of 2023[83]. Shareholder Returns - The company declared dividends of $0.20 per share, totaling $279 million for the quarter[11]. - The company repurchased 35 million shares of its common stock for a total of $1,012 million in March 2024[108]. Operational Metrics - Income from operations for the U.S. Refreshment Beverages segment rose to $717 million in Q2 2024, up from $629 million in Q2 2023, a growth of 14%[70]. - The company reported an income from operations of $861 million in Q2 2024, compared to $769 million in Q2 2023, reflecting a growth of 11.9%[70]. - Income from operations increased by $213 million, or 19.0%, to $1,332 million for the first six months of 2024, compared to $1,119 million for the prior year period, with an operating margin improvement of 380 bps to 29.6%[163]. Taxation - The effective tax rate for Q2 2024 was 23.4%, up from 17.9% in Q2 2023, primarily due to a shift in income mix[84]. - The effective tax rate increased to 23.4% for Q2 2024, up from 17.9% in the prior year, primarily due to a non-cash adjustment and a shift in income mix[132].