Keurig Dr Pepper Inc. · NASDAQ:KDP
Keurig Dr Pepper — Q4 2024 Earnings Presentation
32 slides from Keurig Dr Pepper's earnings presentation, Feb 25, 2025
Slide 1: Q4 and FY 2024 Results
Q4 and FY 2024 Results February 25, 2025 1
Slide 2: Forward looking statements
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,” “e
Slide 3: Agenda
Agenda 1. Business Update 2. Results & Outlook 3. Q&A 3
Slide 4: Conference call participants
Conference call participants Tim Cofer Sudhanshu Priyadarshi Jane Gelfand Chief Executive Officer Chief Financial Officer & SVP, Finance – IR & International President, International 4
Slide 5: Business Update
Business Update Tim Cofer Chief Executive Officer 5
Slide 6: Progress in 2024 against our strategic agenda
Progress in 2024 against our strategic agenda Champion Shape our Amplify our Generate Dynamically Consumer- Now and Next Route to Market Fuel for Growth Allocate Obsessed Beverage Advantage Capital Brand Building Portfolio Gained market Manufacturing Expanded Delivered >$1B strategic share in iconic
Slide 7: 2024 operational highlights
2024 operational highlights 4% net sales & U.S. Refreshment Progress & Greater cost Strengthening 8% EPS growth Beverages & increased discipline supported FCF growth & International resilience in reinvestment and conversion momentum U.S. Coffee margins Enterprise results consistent with long-term al
Slide 8: Q4 2024 financial highlights
Q4 2024 financial highlights Net sales accelerated to 6.2% growth, led by U.S. Refreshment Beverages Broad-based volume/mix growth, with positive contributions from each segment Strong productivity and overhead savings mitigated inflation and funded reinvestment Solid EPS growth of 5.5%, to deliver
Slide 9: U.S. Refreshment Beverages
U.S. Refreshment Beverages Q4 SEGMENT HIGHLIGHTS Continued CSD momentum Strong partnership performance Enhanced energy portfolio & capabilities 9
Slide 10: U.S. Coffee
U.S. Coffee Q4 SEGMENT HIGHLIGHTS Strengthening category momentum Traction from strategic initiatives Record green coffee necessitating pricing 10
Slide 11: International
International Q4 SEGMENT HIGHLIGHTS Healthy LRB performance across regions Strong International Coffee trends Signed Canada licensing deal for Nestea 11
Slide 12: Strategic progress positions KDP for future success
Strategic progress positions KDP for future success STRATEGY LONG-TERM ALGORITHM OUR PURPOSE OUR VISION Drink Well. Do Good. A beverage for every need, Net Sales Mid Growth anytime, anywhere Single Digit OUR STRATEGIES Champion Shape our now and consumer- obsessed brand next beverage Amplify our rou
Slide 13: Results & Outlook
Results & Outlook Sudhanshu Priyadarshi Chief Financial Officer & President, International 13
Slide 14: Fiscal 2024 consolidated results
Fiscal 2024 consolidated results NET SALES ($B) ADJ. OPERATING INCOME ($B) ADJUSTED EPS ($ PER SHARE) $4.0 $15.4 $1.92 $14.8 3.9% YoY 9.0% $3.7 YoY $1.79 7.8% YoY 2023 2024 2023 2024 2023 2024 24.7% 25.9% Adjusted OI Margin 14 Financial metrics presented on an adjusted basis, with growth rates in co
Slide 15: Q4 2024 consolidated results
Q4 2024 consolidated results NET SALES ($B) ADJ. OPERATING INCOME ($B) ADJUSTED EPS ($ PER SHARE) $4.1 6.2% $0.58 $3.9 YoY $1.13 $1.10 3.4% $0.55 5.5% YoY YoY Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q4’24 28.5% 27.7% Adjusted OI Margin 15 Financial metrics presented on an adjusted basis, with growth rates in
Slide 16: U.S. Refreshment Beverages
U.S. Refreshment Beverages Q4 2024 Change Net Sales $2.4B 10.3% Adjusted Operating Income $774M 8.6% Adjusted Operating Margin 31.7% (0.5pts) • Net sales increased 10.3%, with volume/mix growth of 7.5% and favorable net price realization of 2.8% • Volume/mix reflected robust base business trends, le
Slide 17: U.S. Coffee
U.S. Coffee Q4 2024 Change Net Sales $1.1B (2.4%) Adjusted Operating Income $399M (5.7%) Adjusted Operating Margin 35.3% (1.2pts) • Net sales decreased (2.4%), with volume/mix growth of 0.7%, offset by unfavorable net price realization of (3.1%) • Pod shipments grew 1.1%, while brewers declined due
Slide 18: International
International Q4 2024 Change Net Sales $499M 8.5% Adjusted Operating Income $130M (8.6%) Adjusted Operating Margin 26.1% (4.8pts) • Net sales increased 8.5%, with volume/mix growth of 6.5% and favorable net price realization of 2.0% • Volume/mix growth reflected positive contributions across categor
Slide 19: Advanced multiple capital allocation priorities in 2024
Advanced multiple capital allocation priorities in 2024 Invest for Growth Direct Shareholder Returns Accelerating free cash flow generation supported balanced use of cash: • >$1B of strategic investments, including GHOST acquisition and Arizona expansion Opportunistic Internal Partnerships Grow the
Slide 20: 2025 outlook
2025 outlook Net Sales Growth (Constant FX) Adjusted EPS Growth (Constant FX) Mid-single-digit High-single-digit 1-2 pt FX headwind Other Items $ 680-$700M 22-23% ~1.37B Interest Expense Tax Rate Diluted Shares Outstanding 20 Guidance includes anticipated contribution from the recent GHOST acquisiti
Slide 21: Closing Remarks
Closing Remarks Tim Cofer Chief Executive Officer 21
Slide 22: Questions & Answers
© J iKeuri “¢ DrPepper Questions & Answers «DP
Slide 23: Appendix
Appendix «DP
Slide 24: Reconciliation of certain Non-GAAP information for FY 2024
Reconciliation of certain Non-GAAP information for FY 2024 24
Slide 25: FY 2024 income and EPS reconciliation
Income before Diluted Interest provision for Provision for Effective tax earnings per (in millions, except % and per share data) expense, net income taxes income taxes rate Net income share For the Year Ended December 31, 2024 Reported $ 735 1,914 $ 473 247% $ 1,441 § 1.05 Items Affecting Comparabil
Slide 26: FY 2023 income and EPS reconciliation
Income before Interest provision for Provision for (in millions, except % and per share data) expense, net income taxes income taxes For the Year Ended December 31, 2023 Reported $ 496 S$ 2,757 $ 576 Items Affecting Comparability: Mark to market (14) 6 2 Amortization of intangibles - 137 34 Amortiza
Slide 27: Segment income from operations reconciliation
Refreshment Unallocated (in millions, except %) Beverages International ___ corporate costs Total For the Year Ended December 31, 2024 Reported - Income from Operations $ 1878 $ 1,079 $ 545 «$$ (911) $ 2,591 Items Affecting Comparability: Mark to market - — 7) ‘Amortization of intangibles 19 100 14
Slide 28: Impact of foreign currency
Impact of Foreign Reported Currency Constant Currency For the year ended December 31, 2024 Change in net sales U.S. Refreshment Beverages 5.8% —% 5.8 % U.S. Coffee (2.6) _- (2.6) International 6.8 24 9.2 Total change in net sales 3.6 0.3 3.9 Items Impact of Constant Affecting Forei Currency Reported
Slide 29: Reconciliation of certain Non-GAAP information for Q4 2024
Reconciliation of certain Non-GAAP information for Q4 2024 29
Slide 30: Q4 2024 income and EPS reconciliation
Interest (Loss) income (Benefit) Diluted (loss) - expense, before provision provision for Effective Net (loss) _ earnings per (in millions, except % and per share data) net forincome taxes incometaxes _taxrate income share For the Fourth Quarter of 2024 Reported $ 27 § (154) $ (10)] 6.5% $ (144) $ (
Slide 31: Q4 segment income from operations reconciliation
Petiochins Unallocated (in millions, except %) Beverages U.S. Coffee International corporate costs Total For the Fi 2024 Reported - Income from Operations $ (176) $ wo S$ 126 $ Items Affecting Comparability: Mark to market —_ Amortization of intangibles 4 3 8 ‘Stock compensation Restructuring - 2023
Slide 32: For the fourth quarter of 2024
For the fourth quarter of 2024 Change in net sales U.S. Refreshment Beverages U.S. Coffee International Total change in net sales For the fourth quarter of 2024 Operating margin U.S. Refreshment Beverages U.S. Coffee International Total operating margin For the fourth quarter of 2023 Operating margi