Business
Keurig Dr Pepper Reports Q2 2024 Results and Reaffirms Fiscal 2024 Guidance
Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages PerformanceCompany Continues to Expect On-Algorithm Net Sales and
About this update from Keurig Dr Pepper Inc.
[{"type":"text","content":"Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages PerformanceCompany Continues to Expect On-Algorithm Net Sales and Adjusted EPS Growth in 2024\nBURLINGTON, Mass. and FRISCO, Texas, July 25, 2024 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2024 and reaffirmed its full year guidance.\nReported GAAP Basis\nAdjusted Basis1\nQ2\nYTD\nQ2\nYTD\nNet Sales\n$3.92 bn\n$7.39 bn\n$3.92 bn\n$7.39 bn\n% vs prior year\n3.5 %\n3.5 %\n3.4 %\n3.1 %\nDiluted EPS\n$0.38\n$0.70\n$0.45\n$0.84\n% vs prior year\n5.6 %\n1.4 %\n7.1 %\n9.2 %\nCommenting on the quarter, CEO Tim Cofer stated, \"Our second quarter results were healthy, with accelerating net sales trends, significant margin expansion, and solid EPS growth. Strong execution drove our performance, as we continued to advance our long-term strategic agenda. Our consumer-centric innovation model is resonating in market, our portfolio expansion to higher growth categories is ongoing, and we are actively enhancing an already robust route-to-market — all underpinned by an unrelenting focus on cost efficiency and capital discipline. Now halfway through 2024, we are on track to achieve our unchanged full year outlook, while also seeding initiatives to fuel consistent growth over multiple years.\"\nSecond Quarter Consolidated Results\nNet sales for the second quarter increased 3.5% to $3.9 billion. On a constant currency basis, net sales advanced 3.4%, driven by volume/mix growth of 1.8% and higher net price realization of 1.6%.\nGAAP operating income increased 12.0% to $861 million. Adjusted operating income increased 11.0% to $970 million and totaled 24.7% as a percent of net sales. GAAP and Adjusted operating income growth primarily reflected the benefits of higher net price realization and net productivity.\nGAAP net income increased 2.4% to $515 million, or $0.38 per diluted share. Adjusted net income increased 3.2% to $618 million, and Adjusted diluted EPS increased 7.1% to $0.45. GAAP and Adjusted diluted EPS growth was driven by the strong operating income growth and a lower share count, partly offset by higher interest expense and a higher tax rate.\nOperating cash flow for the second quarter was $657 million and free cash flow totaled $543 million.\nSecond Quarter Segment Results\nU.S. Refreshmen...