Keurig Dr Pepper Inc. · NASDAQ:KDP
Keurig Dr Pepper — Q1 2025 Earnings Presentation
25 slides from Keurig Dr Pepper's earnings presentation, Apr 24, 2025
Slide 1: Q1 2025 Results
Q1 2025 Results April 24, 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: Good start to the year in Q1
Good start to the year in Q1 Strong Q1 2025 Well-positioned On track driven by in current to achieve refreshment beverages environment full-year outlook 6
Slide 7: Q1 2025 highlights
Q1 2025 highlights Strong financial results, with 6%+ net sales growth and 10%+ EPS growth Share gains across key LRB brands, including Dr Pepper, Canada Dry, C4 and Electrolit Executional excellence and operating discipline drove accelerating price realization and overhead efficiency Smooth start t
Slide 8: U.S. Refreshment Beverages
U.S. Refreshment Beverages Q1 SEGMENT HIGHLIGHTS Strong portfolio growth, led by CSDs Building energy momentum, with significant future runway Accelerating market share gains in sports hydration 8
Slide 9: U.S. Coffee
To update U.S. Coffee Q1 SEGMENT HIGHLIGHTS Executed pricing actions to mitigate green coffee inflation Volume/mix adjustment period as category pricing layers in Advancing premium, cold, and next-generation platforms 9
Slide 10: International
International Q1 SEGMENT HIGHLIGHTS Strong relative trends across Mexico and Canada LRB momentum, driven by Penafiel and CSD portfolio Net price realization to build over balance of year after Q1 implementation 10
Slide 11: Delivering on 2025 commitments while advancing our strategy
Delivering on 2025 commitments while advancing our strategy 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
Slide 12: Results & Outlook
Results & Outlook Sudhanshu Priyadarshi Chief Financial Officer & President, International 12
Slide 13: Q1 2025 consolidated results
Q1 2025 consolidated results NET SALES ($B) ADJ. OPERATING INCOME ($M) ADJUSTED EPS ($ PER SHARE) $0.42 $3.6 6.4% 3.9% $847 10.5% YoY YoY YoY $3.5 $825 $0.38 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 23.8% 23.3% Adjusted OI Margin 13 Financial metrics presented on an adjusted basis. Growth rates presented
Slide 14: U.S. Refreshment Beverages
U.S. Refreshment Beverages Q1 2025 Change Net Sales $2.3B 11.0% Adjusted Operating Income $676M 8.7% Adjusted Operating Margin 29.1% (0.6pts) • Net sales increased 11.0%, with volume/mix growth of 8.0% and favorable net price realization of 3.0% • Volume/mix reflected base business momentum, led by
Slide 15: U.S. Coffee
U.S. Coffee Q1 2025 Change Net Sales $877M (3.7%) Adjusted Operating Income $253M (12.5%) Adjusted Operating Margin 28.8% (2.9pts) • Net sales decreased (3.7%), with favorable net price realization of 1.5% offset by a volume/mix decline of (5.2%) • Short-term volume and mix impacts from industry pri
Slide 16: International
Higher-res needed International Q1 2025 Change Net Sales $435M 5.4% Adjusted Operating Income $93M (4.6%) Adjusted Operating Margin 21.4% (2.2pts) • Net sales increased 5.4%, with favorable net price realization of 4.1% and volume/mix growth of 1.3% • Segment sales growth reflected strength in LRBs
Slide 17: FCF acceleration and balanced capital deployment
FCF acceleration and balanced capital deployment Capital Allocation Priorities Q1’25 Highlights Continued acceleration in free cash flow Invest for Growth Direct Shareholder Returns • Strong Q1 result, despite a discrete GHOST distribution payment Monetized multi-year Vita Coco stake • Transaction h
Slide 18: Reaffirmed 2025 outlook
Reaffirmed 2025 outlook Net Sales Growth (Constant FX) Adjusted EPS Growth (Constant FX) Mid-single-digit High-single-digit ~1 pt FX headwind Other Items $ 680-$700M 22-23% ~1.37B Interest Expense Tax Rate Diluted Shares Outstanding Outlook incorporates initial anticipated impact of tariffs and rela
Slide 19: Closing Remarks
Closing Remarks Tim Cofer Chief Executive Officer 19
Slide 20: Questions & Answers
© J iKeuri “¢ DrPepper Questions & Answers «DP
Slide 21: Appendix
Appendix «DP
Slide 22: Reconciliation of certain Non-GAAP information
Reconciliation of certain Non-GAAP information 22
Slide 23: Interest expense, income taxes and EPS reconciliation
23 Interest Income before provision for Provision for (in millions, except % and per share data) expen income taxes For the First Quarter of 2025 Reported s 148 660 $ 143 24.7%) 817 0.38 Items Affecting Comparability: Productivity - 32 6 26 0.02 Mark to market 23 (34) Oy (33) (0.02) Amortization of
Slide 24: Income from operations reconciliation by segment
Refreshment Unallocated (in millions, except %) everages International __corporate costs Total For the First Quarter of 2025 Reported - Income from Operations $ 654 S 202 «$§ 90 (145) $ 801 Items Affecting Comparability: Productivity — 25 — 7 32 Mark to market - = - (43) (43) Amortization of intangi
Slide 25: Change in net sales and operating margin reconciliation
25 For the first quarter of 2025: Change in net sales U.S. Refreshment Beverages US. Coffee International Total change in net sales For the first quarter of 2025: Operating margin USS. Refreshment Beverages US. Coffee International Total operating margin For the first quarter of 2024: Operating marg