Latest news with #TimCofer
Yahoo
25-07-2025
- Business
- Yahoo
Keurig Dr Pepper CEO on Q2 beat, coffee sales, cane sugar
Keurig Dr Pepper's (KDP) US beverages saw double-digit growth in the second quarter, led by soda and energy drinks, while its coffee segment faces pressure from inflation and tariffs. Keurig Dr Pepper CEO Tim Cofer joins Opening Bid host Brian Sozzi to discuss the company's latest earnings beat. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. I have Keurig Dr Pepper CEO Tim Cofer. Uh, he has minutes removed from his earnings call. The beverage giant reported softness in its coffee business and reiterated its forward guidance. Let's dig into it with Tim. Tim, nice to see you here. Uh, right off that earnings call, stock is reversing, must have had a good conference call. I was stuck on set. Um, so I I imagine things went, uh, pretty well. Let's start on that US, uh, the US beverage business. Uh, up double digits in terms of sales. What is driving that growth? Yeah, thanks, Brian. Good to be with you. You know, uh, it was a good quarter and, uh, overall, as a company, we delivered north of 7% sales growth and double digit north of 11% EPS growth. So I think in today's, you know, uh, backdrop, we feel pretty good about that. I think your question on US refreshment beverage, this is our largest reported segment as a $10 billion business growing at double digits. And what you see underneath that is really two things. First of all is a core base business that's really firing on all cylinders and that's underscored by our carbonated soft drink business, our soda business, flagship Dr. Pepper, uh, throwing off another great quarter of growth, gaining market share. You're seeing market share gains for brands like 7Up, Canada Dry. The other element is some of the newer additions to the portfolio, most notably energy. And last year made a big acquisition for Ghost Energy, really making a play in energy. Energy now for us is a billion dollar business and net sales, growing high double digits and feel great about, uh, that new move. Those are the two elements underpinning that strong double-digit refreshment beverage growth. How sustainable are double-digit gains in that US refresh, uh, refreshment business? You know, we feel good about what we've done front half and what we still will do year to go on US refreshment beverage. I think that type of growth, uh, we can continue to put up, uh, over the next few quarters, underpinned by those two elements. Feel great about what we're doing in carbonated soft drinks, expect that momentum to to continue. And I think things like energy, things like sports hydration, with a brand like electrolit. Electrolit fastest growing scaled brand in sports hydration, grew at 30% in Q2. So, um, we've got, uh, double-digit ambitions at least for the next few quarters on US refreshment beverage. We're going to talk a little bit about the coffee business in a sec, Tim, but there's such a different pace of growth between the US, the the beverage business and the coffee business. And then you take a step outside your business, you see what's happening at Kellogg and Big Food, more broadly, uh, business is getting broken up. Have you considered that as a way to unlock the growth in a business like US refreshments that is, I mean it's significantly outpacing what you're doing in coffee? Yeah, from a coffee standpoint, uh, feel good about the sequential improvement, uh, we posted in Q2 relative to Q1. So you see the rate of both sales growth and operating income profit growth in Q2 sequentially improved. Uh, this year on coffee, the big feature is inflation, that input costs that green coffee price is up significantly over prior year and that's before you even overlay, uh, tariffs on top of that. And so, inflation is the watch point on coffee and that's why we've priced on that business, as has the industry. And we're also pulling other levers, as you'd imagine, mix management and productivity. Uh, to the second part of your question, look, we love our portfolio right now. We have a dawn to dusk portfolio of total beverage that covers basically every demand state state, you know, every need at anytime anywhere, we offer that beverage. And that gives us a lot of benefits in terms of scale from a procurement standpoint with our customers, or our retail partners and consumer knowledge. Uh, so we continue to like the portfolio as it is. In the end, of course, I'm here to create shareholder value and, uh, anytime there's an opportunity for shareholder value creation, you can expect management and our board will take a look at it. You've been at this for a while, Tim. Uh, you've been in this industry for for decades. What a 50% tariff as President Trump has proposed on Brazil, which is a main main place where we import coffee, does that crush a business like Keurig? Yeah, you know, tariffs, no doubt are a headwind for our business this year. I think we're navigating it well. Um, you know, overall, when you look at KDP, you see a business that is overwhelmingly domestic based, in terms of our manufacturing and our distribution, here in the US and Canada and Mexico in our primary locations. But we're not immune to these tariffs. We do source goods from outside the United States and the notable example is the one you gave, which is green coffee. And, you know, no tariff in the world is going to, uh, change the United States' ability to grow coffee. 99% of the coffee is grown outside the US. It's largely an equatorial crop across Latin America, Southeast Asia and other countries. We have a sophisticated sourcing approach, um, but obviously these tariffs will provide incremental pressure as we go into the back half. And you know, we built that into our outlook. Um, I think the tariff pressure will put some pressure on operating income and EPS in the back half. And yet, as I confirmed last hour on our earnings call, we do feel confident that we can still deliver an on algorithm performance of mid single digits in top line and high single digits EPS growth. Tim, let me just follow up on that. Um, and it's not just not only the the beans that you use, of course, in your coffee, it's the Keurig brewers. In some cases, people have so many of these, uh, throughout their house. They've always been available at a pretty affordable price, but a lot of the components in there come from China and Southeast Asia. Is the reality that you have tariffs now on some of those components on brewers, you can have them even more on coffee beans, is the value proposition for using a pod maker, does it go away because of these tariffs? And I imagine this is a big headache for your business this year. Yeah, I think the value proposition will remain very compelling. Specifically to your comment on brewers, indeed, we source, uh, the majority of brewers from outside the US. We've actually done a great job post-COVID of reorienting our supply chain and now a very small percentage, low single digits comes from China, the balanced in in Southeast Asia. Here again, we therefore would not be immune to tariffs and the impact. We actually took a pricing round on brewers earlier this year. But when you look at that value equation that you referenced, Brian, and you think about the cup of coffee, a coffee shop quality level of coffee you can make from your favorite brands at home, it is still a fraction of the price point of that away from home coffee experience. And so that's the underlying value proposition that has caused our single serve coffee business with Keurig to grow so robustly over the last couple of decades and we think, um, will provide tailwinds going forward. And that's underscored by some of the brewer innovation, whether it's cold brewers, uh, whether it's, uh, the latest one we're launching next month called K-Crema, actually puts that fancy little layer of crema on any K-Cup pod. And then our next generation brewer that we're gearing up for late next year, which is, uh, incredible, highest quality, uh, espressos, cappuccinos, lattes, importantly, all with plastic-free, aluminum-free pods. So we think we're going to be able to continue to innovate, bring coffee shop quality at a fraction of the way from home price. Love me, love me, make it some crema on my coffee at home. Tim, real quick before we let you go. I'm sure you have seen, uh, the week that your friends of Coca-Cola have had. Uh, now come out with full sugar, or about, they teased that they're coming out with full sugar, uh, soda, amid pressure from the Trump administration. Are you doing the same this year for Dr. Pepper and the other soda you sell? A short answer, Brian, is yes. If you're looking for a real cane sugar Dr. Pepper, you can go buy that at the store today. We've had that variant for many years. In fact, just yesterday, Brian, I had one. It's delicious. And, of course, we're here, uh, to serve our consumer. And so we've got a great portfolio from real cane sugar Dr. Pepper to, uh, you know, a sweetener with corn syrup, through to sugar-free variety, my favorite. Sugar-free zero sugar Dr. Pepper grew over 30% in the second quarter. That's our fastest growing part of Dr. Pepper. That's another winner. Related Videos Homebuilding sector playbook: 4 top stock picks Why consumer stocks are falling out of favor on Wall Street Procter & Gamble, Carvana, Boston Beer: Trending Tickers 4 tips to save money on back-to-school shopping 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
CTV News
24-07-2025
- Business
- CTV News
Keurig Dr Pepper quarterly revenue beats expectations fueled by U.S. demand
The logo for Keurig Dr. Pepper appears above a trading post on the floor of the New York Stock Exchange, Thursday, July 12, 2018. (AP Photo/Richard Drew, File) Keurig Dr Pepper reported second-quarter slightly revenue above Wall Street expectations on Thursday, driven by strong demand for its energy drinks and soft beverages, especially in the U.S. Why it is important The Snapple maker enjoyed resilient demand for its higher-priced ready-to-drink beverages, including Yoo-Hoo and Crush, and through the popularity of its majority-owned energy-drink maker, Ghost. The company's results mirror those of bigger rivals PepsiCo's and Coca-Cola's, both of which recently beat quarterly estimates on strong demand. Key quote 'Though the back half will present new challenges, we are on track to deliver our 2025 outlook,' said CEO Tim Cofer. Market reaction Shares of Keurig Dr Pepper, which rose about four per cent so far this year, were flat in premarket trading. Context Instability arising from U.S. President Donald Trump's fluctuating tariff policies and the resulting trade tensions has led to a decline in consumer spending. Keurig also faces a direct risk from tariffs on its business in Canada and Mexico, especially due to the Canadian boycott of U.S. products, and the impact of tariff-driven coffee prices. By the numbers Net sales for the quarter rose 6.1 per cent to US$4.16 billion, compared with estimates of US$4.14 billion, according to data compiled by LSEG. Keurig Dr Pepper posted an adjusted profit of 49 cents per share, in line with analysts' estimates. The Sun Drop maker's volumes grew five per cent compared to a 1.8 per cent rise a year ago, with Ghost contributing 4 percentage points to the volume growth. Net sales in the U.S. beverages segment rose 10.5 per cent compared to a 3.3 per cent rise in the year-ago quarter. The company continues to expect annual net sales to grow in the mid-single-digit range and adjusted profit to grow in the high-single digits. --- Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber
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 (NASDAQ:KDP) Surprises With Q2 Sales
Beverage company Keurig Dr Pepper (NASDAQ:KDP) reported revenue ahead of Wall Street's expectations in Q2 CY2025, with sales up 6.1% year on year to $4.16 billion. Its non-GAAP profit of $0.49 per share was in line with analysts' consensus estimates. Is now the time to buy Keurig Dr Pepper? Find out in our full research report. Keurig Dr Pepper (KDP) Q2 CY2025 Highlights: Revenue: $4.16 billion vs analyst estimates of $4.13 billion (6.1% year-on-year growth, 0.9% beat) Adjusted EPS: $0.49 vs analyst estimates of $0.49 (in line) Operating Margin: 21.6%, in line with the same quarter last year Free Cash Flow Margin: 7.5%, down from 13.8% in the same quarter last year Sales Volumes rose 9.5% year on year (0.4% in the same quarter last year) Market Capitalization: $45.5 billion 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." Company Overview Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $15.76 billion in revenue over the past 12 months, Keurig Dr Pepper is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it's harder to find incremental growth when your existing brands have penetrated most of the market. To expand meaningfully, Keurig Dr Pepper likely needs to tweak its prices, innovate with new products, or enter new markets. As you can see below, Keurig Dr Pepper grew its sales at a mediocre 5.9% compounded annual growth rate over the last three years, but to its credit, consumers bought more of its products. This quarter, Keurig Dr Pepper reported year-on-year revenue growth of 6.1%, and its $4.16 billion of revenue exceeded Wall Street's estimates by 0.9%. Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and implies its products will see some demand headwinds. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Volume Growth Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there's a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. Keurig Dr Pepper's average quarterly volume growth was a healthy 2.4% over the last two years. This is pleasing because it shows consumers are purchasing more of its products. In Keurig Dr Pepper's Q2 2025, sales volumes jumped 9.5% year on year. This result was an acceleration from its historical levels, certainly a positive signal. Key Takeaways from Keurig Dr Pepper's Q2 Results It was good to see Keurig Dr Pepper narrowly top analysts' revenue expectations this quarter. On the other hand, its gross margin missed. Predictably, EPS was roughly in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $33.74 immediately following the results. Is Keurig Dr Pepper an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
