Keurig Dr Pepper Inc. · NASDAQ:KDP
Keurig Dr Pepper — Q2 2025 Earnings Presentation
29 slides from Keurig Dr Pepper's earnings presentation, Jul 24, 2025
Slide 1: Q2 2025 Results
Q2 2025 Results July 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
Update image To update image 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: Ongoing progress against our strategic roadmap
Ongoing progress against our strategic roadmap 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 Inaugural Expanding into Growing direct On track to Strong FCF State of preb
Slide 7: Strong Q2 in a dynamic macro
Strong Q2 in a dynamic macro 7% net sales growth and 11% Adjusted EPS growth Robust performance in cold beverages Sequential improvement in coffee trends Disciplined expense management to protect margins 7 All financial metrics presented on an adjusted, constant currency basis.
Slide 8: U.S. Refreshment Beverages
U.S. Refreshment Beverages Q2 SEGMENT HIGHLIGHTS Double-digit sales growth, driven by both core and white space expansion Continued CSD momentum, led by Dr Pepper, 7UP, and Canada Dry Growing contribution from energy and sports hydration 8
Slide 9: Energy becoming increasingly important growth driver
Energy becoming increasingly important growth driver - $26B category $1B+ - One of fastest-growing LRB categories - Winning complementary portfolio net sales annual run-rate - Execution-driven share gains: ~1pt YTD Category $ Share 10%+ 7% <1% 2022 Q2 2025 Goal 9 Market share sourced from Circana MU
Slide 10: U.S. Coffee
To update Update image U.S. Coffee Q2 SEGMENT HIGHLIGHTS Accelerating top-line, with stronger net price and moderating vol/mix declines Pod trends reflect manageable elasticity in response to inflation-driven pricing Brewers impacted by shipment timing despite stable point-of-sale demand 10
Slide 11: Multiple initiatives to drive long-term Coffee growth
Multiple initiatives to drive long-term Coffee growth Pods & Beverages Brewers Next-Generation K-Mini Mate Keurig Alta K-Crema 11
Slide 12: International
Update image To update International (higher res Q2 SEGMENT HIGHLIGHTS version) Solid performance despite challenging macro conditions in Mexico Strong relative trends, with share gains in CSDs, mineral water, K-Cup pods H2 expected to benefit from strong base plans and Nestea launch in Canada 12
Slide 13: On track to deliver 2025 outlook while advancing our strategy
On track to deliver 2025 outlook 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 Ampli
Slide 14: Results & Outlook
Results & Outlook Sudhanshu Priyadarshi Chief Financial Officer & President, International 14
Slide 15: Q2 2025 consolidated results
Q2 2025 consolidated results Constant currency NET SALES ($B) ADJ. OPERATING INCOME ($M) ADJUSTED EPS ($ PER SHARE) $0.49 $4.2 $1,028 7.2% 7.0% 11.1% YoY YoY YoY $0.45 $3.9 $970 Q2’24 Q2’25 Q2’24 Q2’25 Q2’24 Q2’25 24.7% 24.7% Adjusted OI Margin 15 Financial metrics presented on an adjusted basis. Gr
Slide 16: U.S. Refreshment Beverages
U.S. Refreshment Beverages Q2 2025 Change Net Sales $2.7B 10.5% Adjusted Operating Income $781M 8.0% Adjusted Operating Margin 29.4% (0.6pts) • Net sales increased 10.5%, with volume/mix growth of 9.5% and favorable net price realization of 1.0% • Volume/mix reflected growth in CSDs, energy, and spo
Slide 17: U.S. Coffee
U.S. Coffee Q2 2025 Change Net Sales $948M (0.2%) Adjusted Operating Income $299M 2.0% Adjusted Operating Margin 31.5% 0.7pts • Net sales flattish, with favorable net price realization of 3.6% offset by a volume/mix decline of (3.8%) • Sequential top-line improvement reflected building contribution
Slide 18: International
Higher-res needed Update image International Q2 2025 Change Net Sales $555M 5.7% Adjusted Operating Income $145M 2.6% Adjusted Operating Margin 26.1% (0.8pts) • Net sales increased 5.7%, with favorable net price realization of 5.3% and volume/mix growth of 0.4% • Segment sales growth reflected infla
Slide 19: FCF acceleration and balanced capital deployment
FCF acceleration and balanced capital deployment Capital Allocation Priorities Q2’25 Highlights Continued acceleration in free cash flow Invest for Growth Direct Shareholder Returns • Strong Q2 result, bringing YTD free cash generation to $427 million • H2 acceleration expected Opportunistic Interna
Slide 20: Reaffirmed 2025 outlook
Reaffirmed 2025 outlook Net Sales Growth (Constant FX) Adjusted EPS Growth (Constant FX) Mid-single-digit High-single-digit ~0.5pt FX headwind Other Items ~$700M ~23% ~1.36B Interest Expense Tax Rate Diluted Shares Outstanding 20 Guidance includes anticipated contribution from the recent GHOST acqui
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: Reconciliations of GAAP to non-GAAP information
Reconciliations of GAAP to non-GAAP information 24
Slide 25: Reconciliations of GAAP to non-GAAP information
Reconciliations of GAAP to non-GAAP information 25
Slide 26: Reconciliations of GAAP to non-GAAP information
Reconciliations of GAAP to non-GAAP information 26
Slide 27: Reconciliations of GAAP to non-GAAP information
Reconciliations of GAAP to non-GAAP information 27
Slide 28: Reconciliations of GAAP to non-GAAP information
Reconciliations of GAAP to non-GAAP information Last Twelve (in millions, except for ratio) Months Net income $ 1,536 Interest expense, net 681 Provision for income taxes 490 Depreciation expense 432 Other amortization 140 Amortization of intangibles 134 EBITDA $ 3,413 Items affecting comparability:
Slide 29: Reconciliations of GAAP to non-GAAP information
Reconciliations of GAAP to non-GAAP information First Six Months (in millions) 2025 2024 Net cash provided by operating activities $ 640 $ 742 Purchases of property, plant, and equipment (226) (273) Proceeds from sales of property, plant, and equipment 13 1 Free Cash Flow $ 427 $ 470 29