Becle, S.A.B. de C.V. (OTCPK:BCCLF) Q2 2025 Earnings Call July 24, 2025 11:00 AM ET Company Participants Juan Legorreta - CEO, GM & Proprietary Chairman Mauricio Vergara - Managing Director, Proximo US & Canada, Becle, S.A.B. de C.V. Olga Montano - Managing Director of Mexico & Latim Shane Hoyne - Managing Director of Emea & Apac Rodrigo de la Maza Serrato - General Director of Administration & Finance Conference Call Participants Ricardo Alves - Morgan Stanley, Research Division Fernando Froylan Mendez Sol ...

Core Insights - Coca-Cola Consolidated, Inc. reported solid second quarter results with a focus on top-line growth and margin management, leading to steady profit growth and substantial cash flow [2][3] - The company experienced a volume decline of 0.8% in Q2 2025 and 3.5% in the first half of 2025, attributed to two fewer selling days compared to the previous year [3][4] - Net sales increased by 3.3% to $1.9 billion in Q2 2025 and by 1.4% to $3.4 billion in the first half of 2025, driven by growth in both Sparkling and Still beverage categories [4][5] Financial Performance - Gross profit for Q2 2025 was $742.5 million, a 3.6% increase from Q2 2024, with a gross margin of 40.0% [4][6] - Income from operations in Q2 2025 rose to $272.1 million, a 5.0% increase year-over-year, while the operating margin improved to 14.7% [8][9] - Net income for Q2 2025 was $187.4 million, an increase of 8.4% compared to the same quarter in 2024 [9] Beverage Sales Breakdown - Sparkling beverage sales in Q2 2025 reached $1.08 billion, up 3.0% from Q2 2024, while Still beverage sales increased by 4.8% to $626.1 million [4][5] - The decline in volume was noted in Coca-Cola Original taste, while zero-sugar and flavored offerings saw solid growth [3][5] Cost Management - Selling, delivery, and administrative (SD&A) expenses increased by 2.8% in Q2 2025, primarily due to higher labor costs, but as a percentage of net sales, they decreased to 25.4% [7][8] - The company has made ongoing investments in supply chain capabilities to respond to changing consumer preferences for value [7] Cash Flow and Investments - Cash flows from operations for the first half of 2025 were $406.2 million, down from $437.1 million in the same period of 2024 [11] - The company invested approximately $157 million in capital expenditures in the first half of 2025, with expectations of around $300 million for the fiscal year [11]

Keurig Dr Pepper exceeded earnings and revenue estimates, boosted by sales of energy drinks. https://t.co/dJf1Qv0OYe ...

Keurig Dr Pepper, Inc (KDP) reported $4.16 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 6.1%. EPS of $0.49 for the same period compares to $0.45 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.14 billion, representing a surprise of +0.65%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.49.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Core Insights - Celsius Holdings, Inc. (CELH) and PepsiCo, Inc. (PEP) are significant players in the beverage industry, with CELH focusing on functional, sugar-free energy drinks and PEP being a diversified multinational with a broad portfolio [1][2] Group 1: Celsius Holdings (CELH) - Celsius Holdings is strengthening its position in the energy beverage market, with the acquisition of Alani Nu contributing to approximately 20% of the total dollar growth in the energy drink category in Q1 2025 [3][4] - The company's strategy emphasizes sugar-free, better-for-you products, with sugar-free energy drinks accounting for 86% of the total growth in the energy category during the same period [4] - Innovation is key for CELH, as it launched new Vibe and ESSENTIALS flavors and CELSIUS HYDRATION, targeting the $1.4 billion hydration powder market [5] - Retail expansion is a growth driver, with distribution increased through over 1,800 Home Depot locations and 18,000 Subway restaurants [6] - Despite strong brand momentum, CELH faces operational and financial pressures, including rising costs and competition [7] Group 2: PepsiCo (PEP) - PepsiCo generated net revenues of $22.7 billion in Q2 2025, maintaining a strong market share in carbonated soft drinks, hydration, and sports beverages [8][9] - The company is integrating its North American businesses to enhance operational efficiency through investments in AI and unified data platforms [9][10] - PepsiCo is repositioning key brands to elevate real-food credentials, with growth in the $2 billion permissible snack segment and innovations in no-sugar colas and functional hydration platforms [11][12] - The company is targeting a return to the low end of its long-term top-line growth algorithm, supported by strong international momentum [12] Group 3: Financial Performance and Valuation - The Zacks Consensus Estimate for CELH's 2025 earnings per share (EPS) remains at 82 cents, while PEP's EPS estimate has increased by 13 cents to $8.00 [13][14] - Over the past month, CELH shares fell 0.7%, underperforming the S&P 500 Index, while PEP's stock surged 13.8% [16] - CELH trades at a forward price-to-earnings (P/E) ratio of 44.59X, compared to PEP's more modest forward P/E of 17.95X [17]

Keurig Dr Pepper logged higher second-quarter sales as it sold more beverages at higher prices and made sequential progress with its U.S. coffee business https://t.co/Man8YIkJkK ...

Market Trends & Earnings Analysis - McGra Hill raised $414 million in its IPO [1] - Tesla's Q2 performance met expectations, while Alphabet's earnings call showed bullish commentary on cloud demand and AI monetization [2] - IBM had a good quarter, but the stock is getting hit, while Chipotle had an unsavory quarter, and that stock is getting shredded [3] - Chipotle shares opened down 13% after a disappointing earnings report with a larger-than-expected drop in same-store sales and traffic, prompting a cut to its full-year outlook [5][6] - The Dow opened around 300 points lower, S&P 500 is up around 02%, and the NASDAQ is up roughly 03% [9] - Alphabet raised its capex guidance by $10 billion [25][29] Company Performance & Strategies - Future Standard (formerly FS Investments) highlights a bifurcated earning season, noting investors are becoming more comfortable with AI investments despite potential margin impacts [15][16][17] - Alphabet's AI spend is strong, benefiting the hyperscalers and the broader industry [19] - Pivotal Research raised its price target on Alphabet shares to $245 [22] - Keurig Dr Pepper's US refreshment beverage business is up double digits, driven by core carbonated soft drinks and newer additions like Ghost Energy, which is now a $1 billion business [48][49][50][51] - Keurig Dr Pepper is confident in delivering mid-single-digit topline growth and high-single-digit EPS growth [62] Economic Factors & Challenges - Lower-income consumers are pulling back on spending, impacting the fast-food casual space [7] - Tariffs are a headwind for Keurig Dr Pepper's business, particularly concerning green coffee, but the company has built that into its outlook [59][60][61] - Additional spending in the AI complex will contribute approximately 045% of GDP next year [33] Tesla Analysis - Tesla is in a transition phase, not just an EV play but not yet a robo-taxi company, facing challenges with broken promises and delayed launches [36][37] - Tesla's EV sales are slowing in the US and facing competition in Europe, with potential impact from the removal of EV tax credits [40][41]

Core Insights - Keurig Dr Pepper Inc. (KDP) reported second-quarter 2025 results with both revenue and earnings showing year-over-year improvement, exceeding the Zacks Consensus Estimate [1][6] - Adjusted earnings per share (EPS) reached 49 cents, reflecting an 8.9% increase year over year, aligning with expectations [1][6] - The growth in adjusted operating income was a key driver for the bottom-line improvement [1] Financial Performance - Net sales for the quarter were $4.16 billion, a 6.1% increase year over year, surpassing the Zacks Consensus Estimate of $4.14 billion [6][9] - On a constant-currency basis, net sales improved by 7.2%, supported by a 5% increase in volume/mix and a favorable net price realization of 2.2% [6] - Adjusted gross profit rose 4.0% year over year to $2.29 billion, while the adjusted gross margin decreased by 110 basis points to 55% [6] - Adjusted operating income increased by 5.9% year over year to $1.028 billion, driven by higher sales and productivity savings [7] Segment Performance - U.S. Refreshment Beverages segment sales increased by 10.5% year over year to $2.7 billion, supported by market share gains and the acquisition of GHOST [10][9] - U.S. Coffee segment sales slightly declined by 0.2% to $948 million, with pricing actions indicating early recovery signs despite a volume/mix decline [11][9] - International segment sales fell by 1.8% year over year to $555 million, but increased by 5.7% on a constant-currency basis [12] Financial Health - As of June 30, 2025, KDP had cash and cash equivalents of $509 million, long-term obligations of $13.9 billion, and total stockholders' equity of $24.9 billion [13] - Net cash provided by operating activities was $640 million, with free cash flow amounting to $427 million [13] 2025 Outlook - KDP reaffirmed its guidance for 2025, projecting mid-single-digit net sales growth and high-single-digit adjusted EPS growth on a constant currency basis [14] - Foreign currency translation is expected to be a nearly one percentage point headwind on growth for both top and bottom lines [14]

Group 1: Bond Market Outlook - The yield on the 10-year treasury is expected to remain in the low-to-mid 4% range in 2025, with the FOMC on track to reduce interest rates by approximately 2% over time, suggesting a similar decline in bond yields [1] Group 2: High-Yield Stocks - Mid-2025 is identified as an opportune time to invest in high-yield stocks, with companies like Verizon, Stanley Black & Decker, J.M. Smucker, and PepsiCo trading near historically low valuations and offering yields of at least 4% [2] - Verizon's dividend yield is projected to be 6.5% in mid-2025, supported by a mid-single-digit equity gain and a modest single-digit growth pace expected in 2025 [4][5] - Stanley Black & Decker's shares have hit a decade low, presenting a generational buying opportunity, with a dividend yield of 4.42% and a strong dividend increase track record of 58 years [7] - J.M. Smucker Company has a dividend yield of 3.96%, with a solid balance sheet and a share price expected to rebound strongly in the latter half of the year [10][12] - PepsiCo's dividend yield is substantial at 3.91%, with a diversified growth strategy that has allowed it to maintain a healthy balance sheet while covering capital returns [14][16]

Financial Data and Key Metrics Changes - The company reported a 7.2% increase in net sales in constant currency for Q2 2025, driven by both price and volume mix [30][31] - Gross margin contracted by 110 basis points due to inflationary pressures, despite pricing and productivity savings [32] - Operating income grew by 7% with operating margins remaining steady compared to the prior year [32] Business Line Data and Key Metrics Changes - U.S. Refreshment Beverages segment saw net sales grow by 10.5%, primarily driven by volume mix and the Ghost acquisition contributing 6.6 percentage points [33] - The U.S. Coffee segment experienced a slight decline of 0.2% in net sales, although there was notable sequential improvement from the first quarter [35] - International segment net sales increased by 5.7%, supported by net price realization and a slight volume mix increase [37][28] Market Data and Key Metrics Changes - The energy portfolio achieved a market share of 7%, up from below 1% just a few years ago, with a 30% retail sales growth in Q2 [19][20] - Electrolite, a sports hydration brand, registered over 30% retail sales growth and gained market share in its category [10] - The carbonated soft drink category remains strong, with Doctor Pepper and 7UP contributing to market share gains [50] Company Strategy and Development Direction - The company is focused on five strategic pillars aimed at long-term value creation, including brand building and portfolio reshaping [6] - The acquisition of Diala brands aims to expand KDP's presence in the powdered drink mixes and liquid water enhancers category [10] - The company is investing in its direct store delivery (DSD) network to enhance distribution efficiency and market presence [75][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising cost pressures and consumer caution but remains confident in achieving the full-year outlook [5][30] - The company expects some margin pressure in the second half of 2025 due to inflation and tariffs, but plans to manage these dynamics effectively [41][62] - There is optimism regarding the U.S. Coffee segment's long-term growth potential despite short-term challenges [62] Other Important Information - The company generated $325 million in free cash flow in Q2, with expectations for further acceleration in the second half [38] - The capital allocation strategy remains balanced, focusing on organic and inorganic investments, strengthening the balance sheet, and returning cash to shareholders [39] Q&A Session Summary Question: Evolution of U.S. Refreshment Portfolio - Management highlighted strong contributions from both the base business and new partner additions, with expectations for continued robust growth in the U.S. Refreshment Beverages segment [49][51] Question: Outlook for Coffee Segment - Management expressed satisfaction with sequential improvement in U.S. Coffee but noted challenges ahead due to commodity inflation and tariffs [56][60] Question: Top Line Growth Without Acquisitions - Management reaffirmed confidence in achieving mid-single-digit growth through existing business strategies and operational efficiencies [67][70] Question: Infrastructure for Doctor Pepper Brand - Management emphasized the importance of DSD and ongoing investments to enhance capabilities and support the addition of Doctor Pepper in new regions [75][78] Question: Pricing Dynamics in U.S. Liquid Refreshment Beverages - Management indicated positive net price realization driven by carbonated soft drinks and ongoing pricing strategies to address consumer affordability [84][88] Question: Marketing Changes and ROI - Management discussed a marketing transformation focused on data and digital strategies to enhance consumer engagement and drive demand [92][94] Question: Protein Beverage Space and Diala Acquisition - Management acknowledged the growing consumer interest in health and wellness, including protein beverages, and highlighted the strategic fit of the Diala acquisition in this context [99][102]