Keurig Dr Pepper(US:KDP)2025-02-25 12:02Financial Performance - Net sales for full year 2024 increased 3.6% to $15.35 billion, with constant currency growth of 3.9% driven by volume/mix growth of 2.7% and favorable net price realization of 1.2%[3]. - Adjusted diluted EPS for full year 2024 increased 7.8% to $1.92, supported by adjusted operating income growth of 9.0% to $4.0 billion, which accounted for 25.9% of net sales[5]. - For Q4 2024, net sales increased 5.2% to $4.07 billion, with constant currency growth of 6.2% driven by volume/mix growth of 5.3%[14]. - The company expects mid-single-digit net sales growth and high-single-digit adjusted EPS growth for 2025 on a constant currency basis, including contributions from the GHOST acquisition[24]. - The total change in net sales for 2024 was 3.9%, with U.S. Refreshment Beverages growing by 5.8% and International sales increasing by 9.2%[74]. Cash Flow and Capital Allocation - Operating cash flow for full year 2024 increased 67% to $2.2 billion, while free cash flow grew 82% to $1.7 billion, enabling balanced capital allocation[4]. - Free cash flow for the year ended December 31, 2024, was $2,219 million, an increase from $1,329 million in 2023[46]. - The net cash provided by operating activities for 2024 was $2,219 million, compared to $1,329 million in 2023[78]. Segment Performance - U.S. Refreshment Beverages segment net sales for full year 2024 increased 5.8% to $9.3 billion, driven by volume/mix growth of 2.7% and favorable net price realization of 3.1%[7]. - International segment net sales for full year 2024 increased 6.8% to $2.1 billion, with constant currency growth of 9.2% driven by volume/mix growth of 6.2% and favorable net price realization of 3.0%[11]. - For Q4 2024, total net sales increased by 5.2%, with U.S. Refreshment Beverages up 10.3% and U.S. Coffee down 2.4%[63]. - The U.S. Coffee segment experienced a decline in sales of 2.6% for the year ended December 31, 2024[74]. Profitability and Margins - Adjusted operating income for Q4 2024 increased 3.4% to $1.13 billion, totaling 27.7% of net sales, reflecting net sales growth and productivity savings[15]. - For Q4 2024, reported gross profit was $2,277 million with a gross margin of 55.9%[58]. - For the year ended December 31, 2024, reported gross profit was $8,529 million, with a gross margin of 55.6%[65]. - The company reported a total operating margin of 1.5% for Q4 2024, with an adjusted margin of 27.7%[63]. - The operating margin for U.S. Refreshment Beverages in 2024 was 30.7%, while the total operating margin was 25.9%[74]. Impairments and Restructuring - The company recognized an impairment of goodwill and other intangible assets amounting to $718 million in Q4 2024[60]. - The company incurred restructuring expenses related to the 2023 CEO succession totaling $24 million in Q4 2024[60]. - The company incurred restructuring costs of $51 million related to the 2024 Network Optimization[75]. - Adjusted EBITDA for the year ended December 31, 2024, was significantly impacted by impairments totaling $718 million, including $306 million for goodwill and $412 million for other intangible assets[41][46]. Assets and Liabilities - Total assets increased to $53,430 million as of December 31, 2024, up from $52,130 million in 2023[44]. - Total liabilities rose to $29,187 million in 2024, compared to $26,454 million in 2023[44]. - The company’s cash and cash equivalents increased to $510 million in 2024, compared to $267 million in 2023[44]. Tax and Income - The effective tax rate for the year ended December 31, 2024, was 24.7%[68]. - Adjusted net income for the year ended December 31, 2024, was $2,632 million, with diluted earnings per share of $1.92[68]. - For the year ended December 31, 2023, adjusted net income was $2,518 million, reflecting a 7.3% increase year-over-year[71]. - The company reported a net loss of $144 million for Q4 2024, compared to a net income of $693 million in Q4 2023[41].