Keurig Dr Pepper Q4 Earnings Top Estimates, Coffee Segment Sales Down

Core Insights - Keurig Dr Pepper Inc. (KDP) reported fourth-quarter 2024 results with earnings and revenues exceeding the Zacks Consensus Estimate, showing year-over-year improvement in both metrics [1][2] Financial Performance - Adjusted earnings per share (EPS) reached 58 cents, a 5.5% increase year over year, surpassing the Zacks Consensus Estimate of 57 cents [1] - Net sales amounted to $4.07 billion, reflecting a 5.2$4.03 billion [3] - On a constant-currency basis, net sales improved by 6.2%, driven by a 5.3% increase in volume/mix and a favorable net price realization of 0.9% [3] - Adjusted gross profit rose 3.2% year over year to $2.29 billion, while adjusted gross margin decreased by 120 basis points to 56.3$1.13 billion, supported by higher sales and productivity savings, although partially offset by inflation and increased selling, general, and administrative costs [4] - Adjusted operating margin contracted by 80 basis points year over year to 27.7% [4] Segment Performance - U.S. Refreshment Beverages segment sales reached $2.44 billion, up 10.3$1.13 billion, with a volume/mix improvement of 0.7% offset by a 3.1% unfavorable net price realization [6] - International segment sales increased by 0.8% year over year to $499 million, with a constant-currency increase of 8.5$510 million, long-term obligations of $12.9 billion, and total stockholders' equity of$24.2 billion [8] - Net cash provided by operating activities for 2024 totaled $2.22 billion, with free cash flow amounting to$1.66 billion [9] Outlook - For 2025, management anticipates mid-single-digit net sales growth and high-single-digit adjusted EPS growth on a constant currency basis, including contributions from the GHOST acquisition [10] - Foreign currency translation is expected to pose a headwind of nearly one to two percentage points to top and bottom-line growth in the current year [10]