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Yahoo
24-07-2025
- Business
- Yahoo
Energy Drink Demand Helps Keurig Dr Pepper Beat Profit and Sales Estimates
Coffee machine and beverage maker Keurig Dr. Pepper (KDP) posted better-than-expected results on higher demand for energy drinks. The company reported second-quarter adjusted earnings per share (EPS) of $0.49, with revenue rising 6.1% to $4.16 billion. Both were slightly above the average estimates of analysts surveyed by Visible Alpha. Sales at the U.S. Refreshment Beverages unit were 10.5% higher to $2.7 billion on a 9.5% jump in volume/mix and 1% increase in prices. The 'performance reflected market share gains in carbonated soft drinks, energy, and sports hydration, as well as the acquisition of GHOST,' the company said, noting that Ghost, the energy drink firm it purchased for more than $1 billion in October 2024, added 4 percentage points to the volume/mix gain. U.S. Coffee division sales declined 0.2% to $900 million, as K-Cup pod and brewer shipments fell, even as the company raised prices to offset inflation. Sales at the International segment were down 1.8% to $600 million. CEO Tim Cofer said Keurig Dr Pepper faced a 'dynamic environment,' and while the second half of the year 'will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead." The company reaffirmed its full-year guidance of adjusted EPS climbing in the high-single-digit percent range. Shares of Keurig Dr Pepper are little changed in morning trading and are up about 5% year-to-date. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
24-07-2025
- Business
- Yahoo
Keurig Dr Pepper Q2 Volume Growth Obscured By Margin Cut, Currency Headwind
Keurig Dr Pepper Inc. (NASDAQ:KDP) shares are trading slightly lower on Thursday after the company reported second-quarter results. Keurig registered second quarter adjusted earnings per share of 49 cents, which aligns with the analyst consensus estimate. Quarterly sales of $4.16 billion (up 6.1% year over year) beat the Street view of $4.13 billion. Adjusted net income increased 10.5% to $673 million, while gross profit increased to $2.255 billion from $2.172 billion in the year-ago gross margin contracted to 55% from 56.1% in the year-ago period. On a constant currency basis, net sales advanced 7.2%, driven by volume/mix growth of 5.0% and favorable net price realization of 2.2%. The acquisition of GHOST contributed 4.0 percentage points to volume/mix growth. Adjusted operating income increased 7.0% to $1.028 billion. Adjusted operating margin remained flat on a year-over-year basis to 24.7%. View more earnings on KDP Net sales for the second quarter in the U.S. Refreshment Beverages increased 10.5% to $2.7 billion, U.S. Coffee decreased 0.2% to $0.9 billion, and International decreased 1.8% to $0.6 billion. 'Though the back half will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead,' CEO Tim Cofer stated. Operating cash flow for the second quarter was $431 million, and free cash flow totaled $325 million. Keurig exited the quarter with cash and equivalents worth $509 million, Outlook The beverage giant reaffirmed its fiscal 2025 guidance for constant currency net sales growth in a mid-single-digit range and Adjusted diluted EPS growth in a high-single-digit range. At current rates, foreign currency translation is forecasted to approximate a one-half of one percentage point headwind to full year top and bottom-line growth. Price Action: KDP shares are trading lower by 0.50% to $33.30 at last check Thursday. Read Next:Photo by The Image Party via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Keurig Dr Pepper Q2 Volume Growth Obscured By Margin Cut, Currency Headwind originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
24-07-2025
- Business
- Yahoo
Keurig Dr Pepper Reports Q2 2025 Results and Reaffirms Guidance for 2025
Strong Q2 Results Fueled by Healthy Top-Line Growth and Cost Discipline Momentum in U.S. Refreshment Beverages and International, with Improving U.S. Coffee Trends Company Reaffirms 2025 Constant Currency Net Sales and Adjusted EPS Outlook BURLINGTON, Mass. and FRISCO, Texas, July 24, 2025 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2025 and reaffirmed its full year guidance. Reported GAAP BasisAdjusted Basis1 Q2YTDQ2YTD Net Sales$4.16 bn$7.80 bn$4.16 bn$7.80 bn % vs prior year6.1 %5.5 %7.2 %6.8 % Diluted EPS$0.40$0.78$0.49$0.91 % vs prior year5.3 %11.4 %11.1 %9.5 % Commenting on the quarter, CEO Tim Cofer stated, "Our Q2 results cemented a strong first half of the year, as we drove robust performance in U.S. Refreshment Beverages, good growth in International, and sequential progress in U.S. Coffee. Today's dynamic environment puts a premium on operational excellence, which we are demonstrating while pushing ahead on our multi-year strategic agenda. Though the back half will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead." Second Quarter Consolidated Results Net sales for the second quarter increased 6.1% to $4.2 billion. On a constant currency basis, net sales advanced 7.2%, driven by volume/mix growth of 5.0% and favorable net price realization of 2.2%. The acquisition of GHOST contributed 4.0 percentage points to volume/mix growth. GAAP operating income increased 4.3% to $898 million, including an unfavorable year-over-year impact of items affecting comparability. Adjusted operating income increased 7.0% to $1,028 million and totaled 24.7% of net sales. GAAP and Adjusted operating income growth were driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures. GAAP net income increased 6.2% to $547 million, or $0.40 per diluted share, including an unfavorable year-over-year impact of items affecting comparability. Adjusted net income increased 10.5% to $673 million and Adjusted diluted EPS increased 11.1% to $0.49. Adjusted diluted EPS growth was driven by the Adjusted operating income growth. Operating cash flow for the second quarter was $431 million and free cash flow totaled $325 million. _______________________ 1 Adjusted financial metrics presented in this release are non-GAAP, excluding items affecting comparability. Adjusted growth rates are non-GAAP, excluding items affecting comparability and presented on a constant currency basis. See reconciliations of GAAP results to Adjusted results on a constant currency basis in the accompanying tables. Second Quarter Segment Results U.S. Refreshment Beverages Net sales for the second quarter increased 10.5% to $2.7 billion, driven by volume/mix growth of 9.5% and favorable net price realization of 1.0%. Segment growth reflected market share gains in carbonated soft drinks, energy, and sports hydration, as well as the acquisition of GHOST. GAAP operating income increased 4.0% to $746 million, which included an unfavorable year-over-year impact of items affecting comparability. Adjusted operating income increased 8.0% to $781 million and totaled 29.4% of net sales. GAAP and Adjusted operating income growth were driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures. U.S. Coffee Net sales for the second quarter decreased 0.2% to $0.9 billion. Favorable net price realization of 3.6% was offset by a volume/mix decline of 3.8%. The approximately flat net sales result reflected K-Cup pricing actions taken to combat inflation, offset by pod and brewer shipment declines. GAAP operating income increased 2.2% to $233 million. Adjusted operating income increased 2.0% to $299 million and totaled 31.5% of net sales. GAAP and Adjusted operating income growth were driven by net price realization and cost efficiency measures, partially offset by the impact of inflationary pressures. International Net sales for the second quarter decreased 1.8% to $0.6 billion. On a constant currency basis, net sales increased 5.7%, driven by favorable net price realization of 5.3% and volume/mix growth of 0.4%. Performance was led by market share gains in key categories such as mineral water in Mexico and single serve coffee in Canada. GAAP operating income decreased 4.7% to $143 million, including an unfavorable impact from foreign exchange translation. Adjusted operating income increased 2.6% to $145 million and totaled 26.1% of net sales. Adjusted operating income growth was driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures. 2025 Guidance The 2025 guidance provided below is presented on a constant currency, non-GAAP basis. The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as non-cash gains or losses resulting from mark-to-market adjustments of derivative instruments, among others, which could be material. Reconciling such items would require unreasonable efforts. KDP reaffirmed its fiscal 2025 guidance for constant currency net sales growth in a mid-single-digit range and Adjusted diluted EPS growth in a high-single-digit range. At current rates, foreign currency translation is forecasted to approximate a one half of one percentage point headwind to full year top- and bottom-line growth. Investor Contact: Investor Relations T: 888-340-5287 / IR@ Media Contact: Katie Gilroy T: 781-418-3345 / ABOUT KEURIG DR PEPPER Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenue of more than $15 billion, we hold leadership positions in beverage categories including carbonated soft drinks, coffee, tea, water, juice and mixers, and have the #1 single serve coffee brewing system in the U.S. and Canada. Our innovative partnership model builds emerging growth platforms in categories such as premium coffee, energy, sports hydration and ready-to-drink coffee. Our brands include Keurig®, Dr Pepper®, Canada Dry®, Mott's®, A&W®, Peñafiel®, Snapple®, 7UP®, Green Mountain Coffee Roasters®, GHOST®, Clamato®, Core Hydration® and The Original Donut Shop®. Driven by a purpose to Drink Well. Do Good., our 29,000 employees aim to enhance the experience of every beverage occasion and to make a positive impact for people, communities and the planet. For more information, visit and follow us @KeurigDrPepper on LinkedIn and Instagram. FORWARD LOOKING STATEMENTS Certain statements contained herein are "forward-looking statements" within the meaning of applicable securities laws and regulations. These forward-looking statements can generally be identified by the use of words such as "outlook," "guidance," "anticipate," "enable," "expect," "believe," "could," "confident," "estimate," "feel," "forecast," "intend," "may," "on track," "plan," "positioned," "potential," "project," "should," "target," "will," "would," and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially. Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the SEC. Our actual financial performance could differ materially from those projected in the forward-looking statements due to a variety of factors, including the inherent uncertainty of estimates, forecasts and projections, global economic uncertainty or economic downturns, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions and related uncertainty, and the possibility that we are unable to successfully integrate GHOST Lifestyle LLC ("GHOST") into our business, and our financial performance may be better or worse than anticipated. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law. NON-GAAP FINANCIAL MEASURES This release includes certain non-GAAP financial measures, which differ from results using U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures should be considered as supplements to and should not be considered replacements for, or superior to, the GAAP measures. These measures may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define the non-GAAP financial measure in the same way. Non-GAAP financial measures typically exclude certain charges, including one-time costs that are not expected to occur routinely in future periods, described by the Company as "items affecting comparability". Refer to page A-5 for the Company's description of items affecting comparability for each period presented. The Company uses non-GAAP financial measures to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Additionally, we use non-GAAP financial measures in making operational and financial decisions and in our budgeting and planning process. We believe that providing non-GAAP financial measures to investors helps investors evaluate our operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance. Adjusted gross profit. Adjusted gross profit is defined as Net sales less Cost of sales, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted gross profit is useful for investors in evaluating the Company's operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Adjusted operating income. Adjusted operating income is defined as Income from operations, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted operating income is useful for investors in evaluating the Company's operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Adjusted net income. Adjusted net income is defined as Net income, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted net income is useful for investors in evaluating the Company's operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Adjusted diluted EPS. Adjusted diluted EPS is defined as Diluted EPS, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted diluted EPS is useful for investors in providing period-to-period comparisons of the results of our operations since it adjusts for certain items affecting overall comparability. Adjusted gross margin. Adjusted gross margin is defined as Adjusted gross profit divided by Net sales. Management believes that Adjusted gross margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs. Adjusted operating margin. Adjusted operating margin is defined as Adjusted Income from operations divided by Net sales. Management believes that Adjusted operating margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs. Adjusted interest expense. Adjusted interest expense is defined as Interest expense, net, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted interest expense is useful for investors in evaluating our performance and establishing expectations for the impacts of interest expenses. Adjusted EBITDA. Adjusted EBITDA is defined as EBITDA, as adjusted for items affecting comparability as described on page A-5. EBITDA is defined as Net income as adjusted for interest expense, net; provision for income taxes; depreciation expense; amortization of intangibles; and other amortization. Management believes that Adjusted EBITDA is useful for investors in evaluating the Company's operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability. Management leverage ratio. Management leverage ratio is defined as KDP's total principal amounts of debt less cash and cash equivalents, divided by Adjusted EBITDA. Management believes that the Management leverage ratio is useful for investors in evaluating the Company's liquidity and assessing the Company's ability to meet its financial obligations. Free cash flow. Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant and equipment, proceeds from sales of property, plant and equipment, and certain items excluded for comparison to prior year periods. Management uses this measure to evaluate the company's performance and make resource allocation decisions. Financial measures presented on a constant currency basis. Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates. Because our reporting currency is the U.S. Dollar, the value of financial measures presented in U.S. Dollar will be affected by changes in currency exchange rates. Therefore, we present certain financial measures on a constant currency basis for greater comparability. KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Second QuarterFirst Six Months (in millions, except per share data) 2025202420252024 Net sales $ 4,163$ 3,922$ 7,798$ 7,390 Cost of sales 1,9081,7503,5583,278 Gross profit 2,2552,1724,2404,112 Selling, general, and administrative expenses 1,3561,2952,5482,471 Other operating expense (income), net 116(7)15 Income from operations 8988611,6991,626 Interest expense, net 180204328382 Other income, net —(15)(7)(22) Income before provision for income taxes 7186721,3781,266 Provision for income taxes 171157314297 Net income $ 547$ 515$ 1,064$ 969 Earnings per common share:Basic $ 0.40$ 0.38$ 0.78$ 0.71 Diluted 0.400.380.780.70 Weighted average common shares outstanding:Basic 1,358.31,355.61,357.71,368.2 Diluted 1,362.81,361.21,362.61,374.4 KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30,December 31, (in millions, except share and per share data) 20252024 Assets Current assets:Cash and cash equivalents $ 509$ 510 Restricted cash and restricted cash equivalents 5680 Trade accounts receivable, net 1,4981,502 Inventories 1,7411,299 Prepaid expenses and other current assets 802606 Total current assets 4,6063,997 Property, plant, and equipment, net 2,9962,964 Investments in unconsolidated affiliates 1,5661,543 Goodwill 20,22820,053 Other intangible assets, net 23,84123,634 Other non-current assets 1,0951,200 Deferred tax assets 3639 Total assets $ 54,368$ 53,430 Liabilities and Stockholders' Equity Current liabilities:Accounts payable $ 3,113$ 2,985 Accrued expenses 1,3241,584 Structured payables 3141 Short-term borrowings and current portion of long-term obligations 1,9762,642 Other current liabilities 777835 Total current liabilities 7,2218,087 Long-term obligations 13,92012,912 Deferred tax liabilities 5,4875,435 Other non-current liabilities 2,7552,753 Total liabilities 29,38329,187 Commitments and contingenciesStockholders' equity:Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued —— Common stock, $0.01 par value, 2,000,000,000 shares authorized, 1,358,413,413 and 1,356,664,609 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 1414 Additional paid-in capital 19,72919,712 Retained earnings 5,2324,793 Accumulated other comprehensive income (loss) 10(276) Total stockholders' equity 24,98524,243 Total liabilities and stockholders' equity $ 54,368$ 53,430 KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) First Six Months (in millions) 20252024 Operating activities:Net income $ 1,064$ 969 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation expense 217207 Amortization of intangibles 6867 Other amortization expense 63101 Provision for sales returns 2429 Deferred income taxes 417 Employee stock-based compensation expense 4552 (Gain) loss on disposal of property, plant, and equipment (6)18 Unrealized (gain) loss on foreign currency (6)16 Unrealized (gain) loss on derivatives (56)36 Equity in earnings of unconsolidated affiliates (27)(17) Earned equity from distribution arrangements (10)(45) Other, net (5)5 Changes in assets and liabilities, excluding the effects of business acquisitions:Trade accounts receivable 3(67) Inventories (416)(119) Income taxes receivable and payables, net (86)(34) Other current and non-current assets (136)(180) Accounts payable and accrued expenses (93)(314) Other current and non-current liabilities (7)1 Net change in operating assets and liabilities (735)(713) Net cash provided by operating activities 640742 Investing activities:Acquisitions of businesses, net of cash acquired (111)— Purchases of property, plant, and equipment (226)(273) Proceeds from sales of property, plant, and equipment 131 Purchases of intangibles (16)(49) Investments in unconsolidated affiliates (1)(7) Other, net 63(1) Net cash used in investing activities (278)(329) Financing activities:Proceeds from issuance of Notes 2,0003,000 Repayments of Notes (529)(1,150) Net repayment of commercial paper (139)(226) Repayment of term loan (990)— Proceeds from structured payables 1631 Repayments of structured payables (26)(60) Cash dividends paid (625)(591) Repurchases of common stock, inclusive of excise tax obligation (9)(1,105) Tax withholdings related to net share settlements (28)(43) Payments on finance leases (63)(56) Other, net (16)(22) Net cash used in financing activities (409)(222) Cash, cash equivalents, restricted cash, and restricted cash equivalents:Net change from operating, investing, and financing activities (47)191 Effect of exchange rate changes 4(20) Beginning balance 608267 Ending balance $ 565$ 438 KEURIG DR PEPPER INC. RECONCILIATION OF SEGMENT INFORMATION (UNAUDITED) Second QuarterFirst Six Months (in millions) 2025202420252024 Net SalesU.S. Refreshment Beverages $ 2,660$ 2,407$ 4,983$ 4,500 U.S. Coffee 9489501,8251,861 International 5555659901,029 Total net sales $ 4,163$ 3,922$ 7,798$ 7,390 Income from OperationsU.S. Refreshment Beverages $ 746$ 717$ 1,400$ 1,332 U.S. Coffee 233228435476 International 143150233262 Unallocated corporate costs (224)(234)(369)(444) Total income from operations $ 898$ 861$ 1,699$ 1,626 KEURIG DR PEPPER OF GAAP TO NON-GAAP INFORMATIONCERTAIN LINE ITEMS - CONSOLIDATED(UNAUDITED) The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures that reflect the way management evaluates the business may provide investors with additional information regarding the Company's results, trends and ongoing performance on a comparable basis. Specifically, investors should consider the following with respect to our financial results: Adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability. Items affecting comparability: Defined as certain items that are excluded for comparison to prior year periods, adjusted for the tax impact as applicable. Tax impact is determined based upon an approximate rate for each item. For each period, management adjusts for (i) the unrealized mark-to-market impact of derivative instruments not designated as hedges in accordance with U.S. GAAP that do not have an offsetting risk reflected within the financial results, as well as the unrealized mark-to-market impact of our Vita Coco investment prior to its sale in the first quarter of 2025; (ii) the amortization associated with definite-lived intangible assets; (iii) the amortization of the deferred financing costs associated with the DPS Merger; (iv) the amortization of the fair value adjustment of the senior unsecured notes obtained as a result of the DPS Merger; (v) stock compensation expense and the associated windfall tax benefit attributable to the matching awards made to employees who made an initial investment in KDP; (vi) transaction costs for significant business combinations (completed or abandoned); and (vii) other certain items that are excluded for comparison purposes to prior year periods. For the first six months of 2025, the other certain items excluded for comparison purposes include (i) productivity expenses; (ii) restructuring adjustments associated with the 2023 CEO Succession and Associated Realignment; (iii) costs related to significant non-routine legal matters, including the antitrust litigation; (iv) restructuring expenses associated with the Network Optimization program; (v) the impact of the step-up of acquired inventory associated with the GHOST and Dyla acquisitions; (vi) integration expenses associated with the GHOST and Dyla acquisitions; (vii) the change in our mandatory redemption liability for GHOST; and (viii) non-cash changes in deferred tax liabilities related to goodwill and other intangible assets as a result of tax rate or apportionment changes. For the first six months of 2024, the other certain items excluded for comparison purposes include (i) productivity expenses; (ii) restructuring expenses associated with the 2023 CEO Succession and Associated Realignment; (iii) costs related to significant non-routine legal matters, including the antitrust litigation; and (iv) restructuring expenses associated with the Network Optimization program. Constant currency adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates. For the second quarter and first six months of 2025 and 2024, the supplemental financial data set forth below includes reconciliations of adjusted and constant currency adjusted financial measures to the applicable financial measure presented in the unaudited condensed consolidated financial statements for the same period. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED)(in millions, except %) Gross profitGross marginIncome from operationsOperating margin Second Quarter of 2025Reported $ 2,25554.2 %$ 89821.6 % ... Items Affecting Comparability:Productivity 3547 Mark to market (4)(6) Amortization of intangibles —34 Stock compensation —4 Non-routine legal matters —5 Transaction costs —5 Restructuring - 2023 CEO Succession and Associated Realignment —1 Restructuring - Network Optimization —10 Integration of acquisitions 128 Inventory step-up 22 Adjusted $ 2,28955.0 %$ 1,02824.7 % Impact of foreign currency — %— % Constant currency adjusted 55.0 %24.7 % Second Quarter of 2024Reported $ 2,17255.4 %$ 86122.0 % Items Affecting Comparability:Productivity 2045 Mark to market 6(5) Amortization of intangibles —34 Stock compensation —3 Non-routine legal matters —1 Transaction costs —1 Restructuring - 2023 CEO Succession and Associated Realignment —11 Restructuring - Network Optimization 219 Adjusted $ 2,20056.1 %$ 97024.7 %Refer to pages A-9 and A-10 for reconciliations of reported net sales to constant currency net sales and adjusted income from operations to constant currency adjusted income from operations. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED)(in millions, except % and per share data) Interest expense, netIncome before provision for income taxesProvision for income taxesEffective tax rateNet incomeDiluted earnings per share Second Quarter of 2025Reported $ 180$ 718$ 17123.8 %$ 547$ 0.40 Items Affecting Comparability:Productivity —4712350.03 Mark to market (2)(4)(3)(1)— Amortization of intangibles —3410240.02 Stock compensation —422— Amortization of fair value debt adjustment (4)413— Amortization of deferred financing costs (1)1—1— Non-routine legal matters —523— Transaction costs —514— Restructuring - 2023 CEO Succession and Associated Realignment —1—1— Restructuring - Network Optimization —10370.01 Integration of acquisitions —286220.02 Change in mandatory redemption liability for GHOST —298210.02 Inventory step-up —22—— Change in deferred tax liabilities related to goodwill and other intangible assets ——(4)4— Adjusted $ 173$ 884$ 21123.9 %$ 673$ 0.49 Impact of foreign currency (0.2) % Constant currency adjusted 23.7 % Second Quarter of 2024Reported $ 204$ 672$ 15723.4 %$ 515$ 0.38 Items Affecting Comparability:Productivity —4510350.03 Mark to market (32)224180.01 Amortization of intangibles —348260.02 Stock compensation —312— Amortization of fair value of debt adjustment (3)3—3— Amortization of deferred financing costs (1)1—1— Non-routine legal matters —11—— Transaction costs —11—— Restructuring - 2023 CEO Succession and Associated Realignment —11290.01 Restructuring - Network Optimization —194150.01 Change in deferred tax liabilities related to goodwill and other intangible assets ——6(6)— Adjusted $ 168$ 812$ 19423.9 %$ 618$ 0.45 Change - adjusted 3.0 %8.9 %8.9 % Impact of foreign currency (0.6) %1.6 %2.2 % Change - constant currency adjusted 2.4 %10.5 %11.1 %Diluted earnings per common share may not foot due to rounding. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION INCOME FROM OPERATIONS - CONSOLIDATED AND SEGMENTS (UNAUDITED)(in millions, except %) U.S. Refreshment BeveragesU.S. CoffeeInternationalUnallocated corporate costsTotal Second Quarter of 2025Reported - Income from Operations $ 746$ 233$ 143$ (224)$ 898 Items Affecting Comparability:Productivity —35—1247 Mark to market ———(6)(6) Amortization of intangibles 9232—34 Stock compensation ———44 Non-routine legal matters ———55 Transaction costs ———55 Restructuring - 2023 CEO Succession and Associated Realignment ———11 Restructuring - Network Optimization 18—110 Integration of acquisitions 23——528 Inventory step-up 2———2 Adjusted - Income from Operations $ 781$ 299$ 145$ (197)$ 1,028 Second Quarter of 2024Reported - Income from Operations $ 717$ 228$ 150$ (234)$ 861 Items Affecting Comparability:Productivity 120—2445 Mark to market ——(1)(4)(5) Amortization of intangibles 5263—34 Stock compensation ———33 Non-routine legal matters ———11 Transaction costs ———11 Restructuring - 2023 CEO Succession and Associated Realignment ———1111 Restructuring - Network Optimization —19——19 Adjusted - Income from Operations $ 723$ 293$ 152$ (198)$ 970 Change - adjusted 8.0 %2.0 %(4.6) %(0.5) %6.0 % Impact of foreign currency — %— %7.2 %0.5 %1.0 % Change - constant currency adjusted 8.0 %2.0 %2.6 %— %7.0 % KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CHANGE IN NET SALES AND OPERATING MARGIN - CONSOLIDATED AND SEGMENTS (UNAUDITED)ReportedImpact of Foreign CurrencyConstant Currency Second Quarter of 2025 Change in net sales U.S. Refreshment Beverages10.5 %— %10.5 % U.S. Coffee(0.2)—(0.2) International(1.8)7.55.7 Total change in net sales6.11.17.2 ReportedItems Affecting ComparabilityAdjustedImpact of Foreign CurrencyConstant Currency Adjusted Second Quarter of 2025 Operating margin U.S. Refreshment Beverages28.0 %1.4 %29.4 %— %29.4 % U.S. Coffee24.66.931.5—31.5 International25.80.326.1—26.1 Total operating margin21.63.124.7—24.7 ReportedItems Affecting ComparabilityAdjusted Second Quarter of 2024 Operating margin U.S. Refreshment Beverages29.8 %0.2 %30.0 % U.S. Coffee24.06.830.8 International26.50.426.9 Total operating margin22.02.724.7 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED)(in millions, except %) Gross profitGross marginIncome from operationsOperating margin First Six Months of 2025Reported $ 4,24054.4 %$ 1,69921.8 % Items Affecting Comparability:Productivity 6079 Mark to market (43)(49) Amortization of intangibles —68 Stock compensation —6 Non-routine legal matters —8 Transaction costs —4 Restructuring - Network Optimization 112 Integration of acquisitions 131 Inventory step-up 1717 Adjusted $ 4,27654.8 %$ 1,87524.0 % Impact of foreign currency — %— % Constant currency adjusted 54.8 %24.0 % First Six Months of 2024Reported $ 4,11255.6 %$ 1,62622.0 % Items Affecting Comparability:Productivity 3481 Mark to market 3(24) Amortization of intangibles —67 Stock compensation —7 Non-routine legal matters —2 Transaction costs —2 Restructuring - 2023 CEO Succession and Associated Realignment —13 Restructuring - Network Optimization 221 Adjusted $ 4,15156.2 %$ 1,79524.3 %Refer to pages A-13 and A-14 for reconciliations of reported net sales to constant currency net sales and adjusted income from operations to constant currency adjusted income from operations. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CERTAIN LINE ITEMS - CONSOLIDATED (UNAUDITED)(in millions, except % and per share data) Interest expense, netIncome before provision forincome taxesProvision for income taxesEffective tax rateNet incomeDiluted earnings per share First Six Months of 2025Reported $ 328$ 1,378$ 31422.8 %$ 1,064$ 0.78 Items Affecting Comparability:Productivity —7918610.04 Mark to market 21(38)(4)(34)(0.03) Amortization of intangibles —6816520.04 Stock compensation —624— Amortization of fair value debt adjustment (8)826— Amortization of deferred financing costs (1)1—1— Non-routine legal matters —826— Transaction costs —413— Restructuring - Network Optimization —12390.01 Integration of acquisitions —317240.02 Change in mandatory redemption liability for GHOST —4010300.02 Inventory step-up —174130.01 Change in deferred tax liabilities related to goodwill and other intangible assets ——(2)2— Adjusted $ 340$ 1,614$ 37323.1 %$ 1,241$ 0.91 Impact of foreign currency (0.1) % Constant currency adjusted 23.0 % First Six Months of 2024Reported $ 382$ 1,266$ 29723.5 %$ 969$ 0.70 Items Affecting Comparability:Productivity —8120610.04 Mark to market (67)406340.02 Amortization of intangibles —6717500.04 Stock compensation —725— Amortization of fair value of debt adjustment (7)716— Amortization of deferred financing costs (1)1—1— Non-routine legal matters —211— Transaction costs —211— Restructuring - 2023 CEO Succession and Associated Realignment —133100.01 Restructuring - Network Optimization —215160.01 Change in deferred tax liabilities related to goodwill and other intangible assets ——6(6)— Adjusted $ 307$ 1,507$ 35923.8 %$ 1,148$ 0.84 Change - adjusted 10.7 %8.1 %8.3 % Impact of foreign currency (0.3) %1.5 %1.2 % Change - Constant currency adjusted 10.4 %9.6 %9.5 %Diluted earnings per common share may not foot due to rounding. KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION INCOME FROM OPERATIONS - CONSOLIDATED AND SEGMENTS (UNAUDITED)(in millions, except %) U.S. Refreshment BeveragesU.S. CoffeeInternationalUnallocated corporate costsTotal First Six Months of 2025Reported - Income from Operations $ 1,400$ 435$ 233$ (369)$ 1,699 Items Affecting Comparability:Productivity —60—1979 Mark to market ———(49)(49) Amortization of intangibles 16475—68 Stock compensation ———66 Non-routine legal matters ———88 Transaction costs ———44 Restructuring - Network Optimization 110—112 Integration of acquisitions 23——831 Inventory step-up 17———17 Adjusted - Income from Operations $ 1,457$ 552$ 238$ (372)$ 1,875 First Six Months of 2024Reported - Income from Operations $ 1,332$ 476$ 262$ (444)$ 1,626 Items Affecting Comparability:Productivity 334—4481 Mark to market ——(7)(17)(24) Amortization of intangibles 10516—67 Stock compensation ———77 Non-routine legal matters ———22 Transaction costs ———22 Restructuring - 2023 CEO Succession and Associated Realignment ———1313 Restructuring - Network Optimization —21——21 Adjusted - Income from Operations $ 1,345$ 582$ 261$ (393)$ 1,795 Change - adjusted 8.3 %(5.2) %(8.8) %(5.3) %4.5 % Impact of foreign currency — %— %8.4 %0.5 %1.1 % Change - constant currency adjusted 8.3 %(5.2) %(0.4) %(4.8) %5.6 % KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION CHANGE IN NET SALES AND OPERATING MARGIN - CONSOLIDATED AND SEGMENTS (UNAUDITED)ReportedImpact of Foreign CurrencyConstant Currency First Six Months of 2025 Change in net sales U.S. Refreshment Beverages10.7 %— %10.7 % U.S. Coffee(1.9)—(1.9) International(3.8)9.35.5 Total change in net sales5.51.36.8 ReportedItems Affecting ComparabilityAdjustedImpact of Foreign CurrencyConstant Currency AdjustedFirst Six Months of 2025 Operating margin U.S. Refreshment Beverages28.1 %1.1 %29.2 %— %29.2 % U.S. Coffee23.86.430.2—30.2 International23.50.524.0(0.1)23.9 Total operating margin21.82.224.0—24.0 ReportedItems Affecting ComparabilityAdjusted First Six Months of 2024 Operating margin U.S. Refreshment Beverages29.6 %0.3 %29.9 % U.S. Coffee25.65.731.3 International25.5(0.1)25.4 Total operating margin22.02.324.3 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION ADJUSTED EBITDA AND MANAGEMENT LEVERAGE RATIO (UNAUDITED)(in millions, except for ratio) Last Twelve Months Net income $ 1,536 Interest expense, net 681 Provision for income taxes 490 Depreciation expense 432 Other amortization 140 Amortization of intangibles 134 EBITDA $ 3,413 Items affecting comparability:Productivity $ 114 Mark to market (7) Stock compensation 13 Non-routine legal matters 16 Transaction costs 42 Restructuring - 2023 CEO Succession and Associated Realignment 27 Restructuring - Network Optimization 42 Integration of acquisitions 32 Change in mandatory redemption liability for GHOST 40 Termination fees for distribution rights related to GHOST 225 Inventory step-up 21 Impairment of goodwill and other intangible assets 718 Impairment of investments and note receivable 2 Adjusted EBITDA $ 4,698June 30,2025 Principal amounts of:Commercial paper notes $ 1,477 Senior unsecured notes 14,564 Total principal amounts 16,041 Less: Cash and cash equivalents 509 Total principal amounts less cash and cash equivalents $ 15,532 June 30, 2025 Management Leverage Ratio 3.3 KEURIG DR PEPPER INC. RECONCILIATION OF GAAP TO NON-GAAP INFORMATION ADJUSTED EBITDA - LAST TWELVE MONTHS (UNAUDITED)(in millions) Third Quarter of 2024Fourth Quarter of 2024First Six Months of 2025Last Twelve Months Net income (loss) $ 616$ (144)$ 1,064$ 1,536 Interest expense, net 106247328681 Provision (benefit) for income taxes 186(10)314490 Depreciation expense 103112217432 Other amortization 393863140 Amortization of intangibles 333368134 EBITDA $ 1,083$ 276$ 2,054$ 3,413 Items affecting comparability:Productivity $ 23$ 26$ 65$ 114 Mark to market 33(23)(17)(7) Stock compensation 43613 Non-routine legal matters 35816 Transaction costs 1325442 Restructuring - 2023 CEO Succession and Associated Realignment 324—27 Restructuring - Network Optimization 2461242 Integration of acquisitions —13132 Change in mandatory redemption liability for GHOST ——4040 Termination fees for distribution rights related to GHOST —225—225 Inventory step-up 4—1721 Impairment of goodwill and other intangible assets —718—718 Impairment of investments and note receivable —2—2 Adjusted EBITDA $ 1,190$ 1,288$ 2,220$ 4,698 KEURIG DR PEPPER OF GAAP TO NON-GAAP INFORMATION FREE CASH FLOW(UNAUDITED) Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant, and equipment, proceeds from sales of property, plant, and equipment, and certain items excluded for comparison to prior year periods. For the first six months of 2025 and 2024, there were no certain items excluded for comparison to prior year periods. First Six Months (in millions)20252024 Net cash provided by operating activities$ 640$ 742 Purchases of property, plant, and equipment(226)(273) Proceeds from sales of property, plant, and equipment131 Free Cash Flow$ 427$ 470 View original content to download multimedia: SOURCE Keurig Dr Pepper Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
18-07-2025
- Entertainment
- CBS News
Paul McCartney Pittsburgh tickets are going for upwards of $6K. Why are they so expensive?
Tickets are now on sale for when Sir Paul McCartney makes his return to Pittsburgh later this year. But you may want to double check your bank account before you buy. The prices are giving some fans sticker shock. If you are old enough, you probably remember paying $50 for a concert ticket and getting a very good seat. Nowadays, if you go to see a show, you are going to pay a lot more, including when you go to see McCartney at PPG Paints Arena on Nov. 11. Some of the tickets on the aftermarket cost more than $6,000. But why? Ethan Rene and a few others camped out in front of PPG Paints Arena on Friday to see the group GHOST. When it comes to musical style, GHOST is about as far away from Sir Paul as Pittsburgh is from Piccadilly Circus. And so are prices. The most expensive ticket KDKA-TV found to see GHOST was $526. The most expensive for Sir Paul was $6,308. "What is the absolute most you would pay for your absolute favorite artist?" KDKA-TV's Ross Guidotti asked Rene. "I think 300 would be my limit," Rene responded. KDKA-TV's Ross Guidotti got in the queue when Paul McCartney tickets went on sale at 10 a.m., and when he tried to nab a few 25 minutes later, they cost well over $1,000. Industry insiders blame the increased costs of extravagant productions. Long gone are the days of a stack of amps and a microphone. Transportation costs of all that stuff are going up, and there's dynamic pricing, which literally adjusts ticket prices in real-time based on demand. But what about all those fees? Insiders say fees are just a way to make more money. "I paid, I think, 190 for this ticket, without fees, and with fees, it was 230 something," said Rene. And then you have Live Nation and Ticketmaster, which hold the reins on a lot of artists and where they can play and how much tickets cost. Live Nation and Ticketmaster have been the targets of federal antitrust and monopoly lawsuits and investigations. The companies say it's just the cost of doing business. Add to that resale agencies like StubHub and others, and the prices go up even more. "Is there any artist worth paying as much as you'd pay for a decent used car?" Guidotti asked. "For me, no. No, I would not," said Rene. But industry insiders say as long as people are willing to pay, the show will go on and the cost will continue to rise.
Yahoo
23-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Keurig Dr Pepper's Q1 Earnings Call
Keurig Dr Pepper's first quarter results were marked by solid top and bottom-line performance, surpassing Wall Street's expectations. Despite this, the market responded negatively, with management attributing strong results to double-digit growth in U.S. refreshment beverages, notable market share gains for core brands like Dr Pepper and Canada Dry, and the successful integration of new energy drink offerings. CEO Tim Cofer acknowledged that while performance was healthy overall, U.S. Coffee faced a challenging start, primarily due to inflation and uneven competitive pricing, which weighed on volumes and mix. Is now the time to buy KDP? Find out in our full research report (it's free). Revenue: $3.64 billion vs analyst estimates of $3.57 billion (4.8% year-on-year growth, 1.9% beat) Adjusted EPS: $0.42 vs analyst estimates of $0.38 (9.8% beat) Adjusted EBITDA: $1.01 billion vs analyst estimates of $990.1 million (27.8% margin, 2% beat) Operating Margin: 22%, in line with the same quarter last year Sales Volumes rose 8% year on year (-0.3% in the same quarter last year) Market Capitalization: $45.61 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Dara Mohsenian (Morgan Stanley) asked about management's confidence in maintaining earnings guidance given tariff and consumer risks. CFO Sudhanshu Priyadarshi said guidance assumes both risks and opportunities, with flexibility provided by Q1 outperformance and mitigation plans around cost savings and pricing. Lauren Lieberman (Barclays) questioned pricing elasticity in coffee and the strategy for maintaining affordability amid inflation. CEO Tim Cofer responded that while early price increases hurt volume, he expects normalization as competitors follow and highlighted value-oriented pack sizes and premium offerings. Nik Modi (RBC Capital Markets) inquired about trends in Hispanic consumer behavior and the impact of potential SNAP beverage restrictions. Cofer stated that while some softening is evident among Hispanic consumers, it has not materially impacted enterprise results, and the company would advocate for consumer choice in SNAP policy discussions. Chris Carey (Wells Fargo Securities) asked about the trajectory of free cash flow and capital allocation. Cofer said the company remains on track to improve free cash flow conversion over the next two years, with priorities including deleveraging, disciplined investment, and steady dividends. Peter Grom (UBS) sought clarification on the expected momentum for GHOST and trends in the energy category. Cofer indicated that GHOST's contribution would build throughout the year, and energy as a category remains one of the fastest-growing segments in beverages. In the coming quarters, our analysts will monitor (1) the pace of volume and share gains in energy drinks and sports hydration, (2) the normalization and recovery trajectory in the U.S. Coffee segment as competitive pricing takes hold, and (3) management's ability to mitigate tariff and inflationary pressures without eroding margins. Execution on new product launches and evidence of sustained momentum in core brands will also be key signposts. Keurig Dr Pepper currently trades at $33.90, down from $35.14 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
