Keurig Dr Pepper, Inc (KDP) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this company would post earnings of $0.57 per share when it actually produced earnings of $0.58, delivering a surprise of 1.75%.Over the last four quarters, the comp ...

Financial Performance - Net sales for the first quarter of 2025 were $3,635 million, an increase of 4.8% compared to $3,468 million in the first quarter of 2024[11] - Gross profit for the first quarter of 2025 was $1,985 million, up from $1,940 million in the same period last year, reflecting a gross margin of approximately 54.6%[11] - Net income for the first quarter of 2025 was $517 million, representing a 14% increase from $454 million in the first quarter of 2024[11] - Earnings per share (EPS) for the first quarter of 2025 were $0.38, compared to $0.33 in the first quarter of 2024, indicating a 15.2% year-over-year growth[11] - Income from operations for the first quarter of 2025 was $801 million, compared to $765 million in the same period of 2024, reflecting a 4.7% increase[71] - The U.S. Refreshment Beverages segment generated net sales of $2,323 million in Q1 2025, up from $2,093 million in Q1 2024, representing an increase of 11%[72] - The U.S. Coffee segment reported net sales of $877 million in Q1 2025, a decrease of 3.7% from $911 million in Q1 2024[72] - The International segment's net sales were $435 million in Q1 2025, compared to $464 million in Q1 2024, indicating a decline of 6.3%[72] Assets and Liabilities - Total assets as of March 31, 2025, were $53,699 million, a slight increase from $53,430 million as of December 31, 2024[16] - The company’s total liabilities were $29,252 million as of March 31, 2025, compared to $29,187 million at the end of 2024[16] - Long-term obligations decreased to $11,927 million as of March 31, 2025, from $12,912 million at the end of 2024, showing a reduction of approximately 7.6%[28] - The current portion of long-term obligations was $1,027 million as of March 31, 2025, slightly up from $1,026 million at the end of 2024[28] - Outstanding obligations under supplier financing arrangements were $1,759 million as of March 31, 2025, compared to $1,740 million as of December 31, 2024[86] Cash Flow and Dividends - Cash and cash equivalents increased to $653 million as of March 31, 2025, up from $510 million at the end of 2024[16] - The company reported a net cash provided by operating activities of $209 million for the first quarter of 2025, compared to $85 million in the first quarter of 2024[17] - Net cash provided by financing activities was $(7) million in Q1 2025, compared to $158 million in Q1 2024, indicating a significant decrease[19] - Cash dividends paid increased to $312 million in Q1 2025 from $299 million in Q1 2024, reflecting a rise of approximately 4.3%[19] - The company declared cash dividends of $312 million in the first quarter of 2025, slightly up from $299 million in the same period last year[19] Investments and Acquisitions - The company entered into a definitive agreement to acquire a controlling interest in GHOST for $999 million, with an initial purchase of a 60% stake completed on December 31, 2024[40] - As of March 31, 2025, investments in unconsolidated affiliates totaled $1,568 million, up from $1,543 million as of December 31, 2024, with Nutrabolt being the largest investment at $1,120 million[79] Tax and Compliance - The effective tax rate for the first quarter of 2025 was 21.7%, a decrease from 23.6% in the same quarter of 2024, primarily due to a non-cash revaluation of state deferred tax liabilities[80] - The company maintained compliance with its minimum interest coverage ratio of 3.25 to 1.00 under the 2025 Revolving Credit Agreement as of March 31, 2025[35] Restructuring and Litigation - The restructuring program initiated in March 2024 is expected to incur pre-tax charges between $125 million and $145 million through the second half of 2025[93] - The company plans to continue its restructuring efforts, including the closure of the Windsor, Virginia manufacturing facility, expected to be completed in the second quarter of 2025[92] - Litigation reserves remained at $2 million as of both March 31, 2025, and December 31, 2024, with ongoing antitrust litigation claims exceeding $5 billion[87][90] - Keurig reached a settlement agreement for $31 million in the Multidistrict Antitrust Litigation, resolving claims from indirect purchasers[89] Stock and Compensation - Stock-based compensation expense for Q1 2025 was $22 million, down from $28 million in Q1 2024[74] - As of March 31, 2025, the company had 12,522,161 outstanding Restricted Share Units (RSUs) with an intrinsic value of $429 million[75] - The company recognized $205 million of unrecognized compensation cost related to unvested RSUs, expected to be recognized over a weighted average period of 3.3 years[76] - The company granted 443,933 Performance Share Units (PSUs) with a fair value of $30.71, resulting in a balance of 442,619 PSUs as of March 31, 2025[78]

Core Viewpoint - Keurig Dr Pepper has appointed two new independent directors, Mike Van de Ven and Lawson Whiting, and Bob Gamgort has transitioned to the role of non-executive Chairman of the Board, effective April 24, 2025 [1][2]. Group 1: Board Changes - The appointments of Mike Van de Ven and Lawson Whiting are aimed at strengthening the Board of Directors with their extensive experience in business management and brand leadership [2]. - Bob Gamgort's transition from Executive Chairman to non-executive Chairman reflects the company's evolution and strategic direction [2]. Group 2: Profiles of New Directors - Mike Van de Ven has 32 years of experience at Southwest Airlines, including roles as President and Chief Operating Officer, and he holds a Bachelor of Business Administration in Accounting [2][3]. - Lawson Whiting has over 25 years at Brown-Forman Corporation, serving as President and CEO since January 2019, and he holds degrees in Finance and Business Administration [3]. Group 3: Company Overview - Keurig Dr Pepper is a leading North American beverage company with over 125 brands and annual revenue exceeding $15 billion, holding leadership positions in various beverage categories [5].

EXHIBIT 99.1 Company Reaffirms 2025 Constant Currency Net Sales and Adjusted EPS Outlook BURLINGTON, MA and FRISCO, TX (April 24, 2025) – Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the first quarter of 2025 and reaffirmed its full year guidance. | | Reported GAAP Basis | 1 Adjusted Basis | | --- | --- | --- | | | Q1 | Q1 | | Net Sales | $3.64 bn | $3.64 bn | | % vs prior year | 4.8% | 6.4% | | Diluted EPS | $0.38 | $0.42 | | % vs prior year | 15.2% | 10.5% | Commenting on the results, CE ...

Group 1 - The core viewpoint of the article highlights the uncertainty in the economic situation due to multiple policy adjustments, leading to a cooling trend in both primary and secondary markets in the US stock market during Q1 2025 [1] - The Dow Jones Industrial Average fell by 1.28%, the Nasdaq index dropped by 10.42%, and the S&P 500 index decreased by 4.59% in Q1 2025 [1] - The total amount raised through equity financing in Q1 2025 was $44.4 billion, a decrease of 11.80% compared to $50.3 billion in the same period last year [1][4] Group 2 - In Q1 2025, there were 88 successful IPOs, an increase of 36 compared to the same period last year, with a total financing amount of $11.4 billion, up 18.21% year-on-year [1][16] - The largest IPO was by Venture Global, raising $1.75 billion [31] - SPAC IPOs saw 19 companies listed, an increase of 11 from the previous year, raising $2.6 billion, which is a 57.45% increase [34] Group 3 - The refinancing events in Q1 2025 totaled 209, a decrease of 35 from the previous year, with a total amount of $33 billion, down 18.93% [1][39] - The non-bank financial sector led in refinancing amounts with $16.2 billion, followed by the oil and petrochemical sector at $4.9 billion [10][45] - The top refinancing project was Charles Schwab, raising $13.111 billion [50] Group 4 - Goldman Sachs led the IPO underwriting rankings with an underwriting amount of $1.431 billion from 8 deals [2][53] - TD Securities topped the refinancing underwriting scale with $8.289 billion from 10 deals [57] - The most active refinancing underwriter was H.C. Wainwright, participating in 27 events [58]

Core Insights - Keurig Dr Pepper Inc. will release its financial results for Q1 2025 on April 24, 2025, before market opens [1] - A conference call to discuss the results will be held on the same day at 7:30 AM (ET), hosted by the CEO and CFO [1] - The company has a strong beverage portfolio with over 125 brands and annual revenue exceeding $15 billion [4] Financial Results Announcement - The financial results for the first quarter ended March 31, 2025, will be disclosed before market opens on April 24, 2025 [1] - A conference call will take place on April 24, 2025, at 7:30 AM (ET) to discuss these results [1][2] Access Information - Investors can access the conference call by dialing specific numbers for the U.S., Canada, and international participants [2] - A replay of the call will be available from April 24, 2025, at 11:00 AM (ET) until May 8, 2025 [2] Company Overview - Keurig Dr Pepper is a leading beverage company in North America with a diverse portfolio and strong distribution capabilities [4] - The company holds leadership positions in various beverage categories, including carbonated soft drinks, coffee, and tea [4] - The company employs approximately 29,000 individuals and is committed to making a positive impact on communities and the planet [4]

Core Viewpoint - The Coca-Cola Company (KO) is experiencing upward momentum in its stock price, supported by a strong brand portfolio, business investments, innovation, and digital initiatives, alongside positive market trends [1][5][24]. Stock Performance - KO stock closed at $71.45, trading above its 50-day and 200-day simple moving averages (SMA) of $65.44 and $66.11, indicating a potential sustained upward trend [2][4]. - Over the past year, KO shares have increased by 18.2%, outperforming the broader industry’s 1.1% rise and the S&P 500's growth of 12.5% [5][8]. Competitive Position - KO's performance is notably stronger than competitors like PepsiCo Inc. (PEP) and Monster Beverage (MNST), which declined by 5.7% and 4.8%, respectively, in the past year [8]. - The current stock price reflects a 2.8% discount from its 52-week high of $73.53, indicating potential for further growth [8]. Strategic Initiatives - Coca-Cola is focusing on innovation and expansion, aiming to become a total beverage company by diversifying its product offerings beyond traditional sugary drinks to include healthier options and energy drinks [9][10]. - The company plans to enter the ready-to-drink (RTD) alcoholic beverages market with Bacardi Mixed with Coca-Cola cocktails in 2025, building on existing RTD products [11]. Financial Outlook - Management anticipates organic revenue growth of 5-6% in 2025, with comparable currency-neutral EPS projected to rise by 8-10% year-over-year [13]. - The Zacks Consensus Estimate for KO's 2025 EPS has increased by 0.7% in the last 30 days, indicating analysts' confidence in the stock [16]. Valuation Analysis - KO trades at a forward 12-month price-to-earnings (P/E) multiple of 23.79X, which is above the broader industry's multiple of 19.15X, suggesting a premium valuation [22]. - The current valuation is below its five-year high of 26.61X, raising questions about its justification amid competitive pressures and economic uncertainty [21][23]. Challenges - Despite positive trends, Coca-Cola faces macroeconomic challenges, including low consumer confidence in China and high inflation in Argentina, which could impact revenues [18][19]. - Currency headwinds are expected to reduce 2025 revenues by 3-4%, with comparable EPS growth projected to face a 6-7% impact from currency fluctuations [20].

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]