Keurig Dr Pepper(US:KDP)2024-10-24 13:28Financial Performance - Net sales for Q3 2024 reached $3,891 million, a 2.3% increase from $3,805 million in Q3 2023[7] - Gross profit for Q3 2024 was $2,140 million, compared to $2,111 million in Q3 2023, reflecting a gross margin improvement[7] - Net income for Q3 2024 increased to $616 million, up from $518 million in Q3 2023, representing a 19% year-over-year growth[7] - Earnings per share (EPS) for Q3 2024 was $0.45, compared to $0.37 in Q3 2023, indicating a 21.6% increase[7] - Comprehensive income for Q3 2024 was $553 million, compared to $392 million in Q3 2023[9] - Net income for the first nine months of 2024 was $1,585 million, an increase of 6.5% compared to $1,488 million in 2023[14] - Net cash provided by operating activities increased to $1,370 million from $1,032 million, reflecting a growth of 32.7%[14] - For Q3 2024, net income increased by $98 million, or 18.9%, to $616 million, primarily driven by reduced interest expense[120] Assets and Liabilities - Total assets as of September 30, 2024, were $52,718 million, up from $52,130 million at the end of 2023[12] - The company reported a decrease in long-term obligations to $12,413 million from $9,945 million[12] - The company’s total liabilities increased to $27,749 million from $26,454 million[12] - Current liabilities decreased to $5,730 million as of September 30, 2024, down from $6,749 million at the end of 2023[166] - The fair value of the company's notes was $12,531 million as of September 30, 2024, up from $10,486 million as of December 31, 2023[35] Cash Flow and Investments - Total cash used in investing activities was $538 million, a decrease from $623 million in the previous year, indicating improved cash management[17] - Cash dividends paid increased to $883 million from $842 million, representing a rise of 4.9%[17] - The company repurchased common stock worth $1,105 million, significantly higher than $457 million in the previous year, indicating a strong commitment to returning value to shareholders[17] - Cash and cash equivalents increased to $552 million as of September 30, 2024, compared to $267 million at the end of 2023[12] - The company reported cash flow hedge losses totaling $(4) million for the first nine months of 2024, compared to gains of $2 million for the same period in 2023[85] Segment Performance - The U.S. Refreshment Beverages segment generated $2,390 million in sales for the third quarter of 2024, up from $2,270 million in the third quarter of 2023, reflecting a growth of 5.3%[72] - The U.S. Coffee segment reported sales of $976 million in the third quarter of 2024, a decrease of 3.6% compared to $1,012 million in the same quarter of 2023[72] - The International segment's sales were $525 million for the third quarter of 2024, slightly up from $523 million in the same quarter of 2023[72] - U.S. Refreshment Beverages segment net sales increased by $120 million, or 5.3%, to $2,390 million for Q3 2024[123] - U.S. Coffee segment net sales decreased by $36 million, or 3.6%, to $976 million for Q3 2024, reflecting unfavorable net price realization of 6.3%[126] Shareholder Returns - Dividends declared per share increased to $0.23, up from $0.215, reflecting the company's ongoing commitment to returning capital to shareholders[20] - The annualized dividend rate was increased by 7.0% to $0.92 per share, effective September 12, 2024[113] - Total dividends declared were $0.66 per share for the first nine months of 2024, compared to $0.615 per share for the same period in 2023[158] Acquisitions and Strategic Initiatives - The company completed the acquisition of Kalil for a total consideration of $103 million, enhancing its distribution capabilities in Arizona[36] - The preliminary allocation of consideration exchanged in the Kalil Acquisition resulted in $10 million of goodwill, primarily attributable to the assembled workforce[38] - A definitive agreement was made to acquire a 60% stake in GHOST for $990 million, with plans to acquire the remaining 40% in 2028[103] Tax and Interest Rates - The effective tax rate for Q3 2024 was 23.2%, compared to 22.0% in Q3 2023, reflecting a shift in income mix[82] - Interest expense decreased by $131 million, or 55.3%, to $106 million for Q3 2024 compared to $237 million in Q3 2023[120] - The weighted average commercial paper borrowings for the third quarter of 2024 were $2,163 million, with a borrowing rate of 5.50%[33] Other Financial Metrics - The total stockholders' equity as of September 30, 2024, was $24,969 million, an increase from $24,718 million[20] - The company reported a total of $743 million in prepaid expenses and other current assets as of September 30, 2024, compared to $598 million at the end of 2023, representing a 24.2% increase[86] - The balance of finished goods inventory rose to $826 million as of September 30, 2024, compared to $742 million at the end of 2023, reflecting an 11.3% increase[86]