Business
Keurig Dr Pepper Reports Q3 2024 Results and Reaffirms Fiscal 2024 Guidance
Q3 Performance Led by Strong U.S. Refreshment Beverages and International Momentum Announced Acquisition of GHOST Advances Position in Attractive Energy Drink
About this update from Keurig Dr Pepper Inc.
[{"type":"text","content":"Q3 Performance Led by Strong U.S. Refreshment Beverages and International Momentum\nAnnounced Acquisition of GHOST Advances Position in Attractive Energy Drink Space\nCompany Reaffirms 2024 Constant Currency Net Sales and Adjusted EPS Outlook\nBURLINGTON, MA and FRISCO, TX, Oct. 24, 2024 /PRNewswire/ -- Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the third quarter of 2024 and reaffirmed its full year guidance.\nReported GAAP Basis\nAdjusted Basis1\nQ3\nYTD\nQ3\nYTD\nNet Sales\n$3.89 bn\n$11.28 bn\n$3.89 bn\n$11.28 bn\n% vs prior year\n2.3 %\n3.1 %\n3.1 %\n3.1 %\nDiluted EPS\n$0.45\n$1.16\n$0.51\n$1.34\n% vs prior year\n21.6 %\n10.5 %\n6.3 %\n8.1 %\nCommenting on the results, CEO Tim Cofer stated, \"Three quarters into the year, we remain on track to achieve our full year outlook, while notching significant progress against our multi-year strategic agenda. This morning's exciting announcement of our acquisition of GHOST is yet another such step, accelerating our portfolio evolution toward growth-accretive and consumer-preferred spaces. In Q3, we were encouraged by further improvement in our volume/mix performance despite a muted operating environment, and also demonstrated building cost discipline throughout the organization. Both are important elements underpinning our confidence as we focus on a strong finish to 2024 and plan for a healthy 2025.\"\nThird Quarter Consolidated Results\nNet sales for the third quarter increased 2.3% to $3.9 billion. On a constant currency basis, net sales advanced 3.1%, driven by volume/mix growth of 3.5%, partially offset by modestly unfavorable net price realization of 0.4%.\nGAAP operating income increased 0.7% to $902 million, despite an unfavorable year-over-year impact of items affecting comparability. Adjusted operating income increased 7.5% to $1,050 million and totaled 27.0% as a percent of net sales. Adjusted operating income growth primarily reflected net productivity savings and disciplined overhead expense management, partially offset by the impact of inflation.\nGAAP net income increased 18.9% to $616 million, or $0.45 per diluted share, aided by a favorable year-over-year impact of items affecting comparability. Adjusted net income increased 3.9% to $694 million, and Adjusted diluted EPS increased 6.3% to $0.51. Adjusted diluted EPS growth was driven by the health...