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KDP · Keurig Dr Pepper

19 filings

10-K

KDP 10-K Annual Reports

Keurig Dr Pepper - 19 annual reports

Filing record · 2016–202610-K1210-Q338-K216

2025
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2025
Keurig Dr Pepper Inc. (KDP) reported net sales of $16.60 billion for the year ended December 31, 2025, up 8.2% from $15.35 billion, with net income of $2.08 billion (diluted EPS $1.53, up from $1.05). Income from operations rose 38.0% to $3.58 billion, aided by the absence of the prior year's $306 million goodwill impairment and lower indefinite-lived brand impairments ($78 million versus $412 million). Growth was led by U.S. Refreshment Beverages, where net sales rose 11.9% to $10.44 billion, including the GHOST acquisition, while U.S. Coffee sales rose only 0.6% as appliance volume fell 19.9% and K-Cup pod volume fell 4.8%. The dominant strategic item is the proposed JDE Peet's Acquisition, for which KDP commenced a tender offer on January 16, 2026 at €31.85 per share, with closing expected early in the second quarter of 2026. It is financed through bridge and delayed-draw term loans (€5.85 billion and €10.35 billion facilities, respectively, both undrawn at year-end), a $4 billion minority investment by JV investors in a Pod Manufacturing JV for a 49% interest, and $4.5 billion of Convertible Preferred Stock. KDP also intends to separate its beverage and coffee businesses into two public companies after the acquisition closes. Moody's (Baa1) and S&P (BBB) have placed KDP ratings under review or on watch negative for potential downgrade. Balance sheet and cash flow highlights: total assets were $55.46 billion, with goodwill of $20.25 billion and intangible assets of $23.73 billion. Net cash provided by operating activities was $1.99 billion, down from $2.22 billion, and cash dividends paid were $1.25 billion. Commercial paper stood at $2.21 billion and Notes at $13.93 billion carrying value. Walmart accounted for approximately 16% of consolidated net sales.
Feb 24, 2026
2024
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2024
Keurig Dr Pepper Inc. (KDP) reported net sales of $15,351 million for the year ended December 31, 2024, up $537 million, or 3.6%, from $14,814 million in 2023. Net income fell 33.9% to $1,441 million from $2,181 million, and diluted EPS declined 32.3% to $1.05 from $1.55. The decline was driven by non-cash impairment charges of $306 million on goodwill (U.S. Warehouse Direct reporting unit) and $412 million on indefinite-lived brand intangibles (primarily Snapple), plus a $225 million termination fee payable to Anheuser-Busch InBev related to the GHOST distribution rights. Income from operations fell 18.8% to $2,591 million, while gross margin improved to 55.6% from 54.5%. Segment results were mixed. U.S. Refreshment Beverages net sales grew 5.8% to $9,331 million, but its operating income fell 24.4% due to the impairments and the ABI fee. U.S. Coffee net sales declined 2.6% to $3,967 million, with income from operations down 6.8%. The International segment grew net sales 6.8% to $2,053 million and operating income 14.7% to $545 million. Cash flow from operations rose to $2,219 million from $1,329 million, driven by working capital changes. Balance sheet and capital allocation changes were significant. KDP acquired a 60% controlling interest in GHOST effective December 31, 2024, for an initial payment of $999 million funded primarily by a $990 million term loan, and agreed to buy the remaining 40% in 2028. Total debt-related obligations rose, with interest expense, net increasing 48.2% to $735 million. KDP repurchased $1,110 million of common stock and paid $1,194 million in dividends, with $1,810 million remaining under its share repurchase authorization.
Feb 25, 2025
2023
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2023
Keurig Dr Pepper Inc. (KDP) reported net sales of $14.81 billion for the year ended December 31, 2023, up $757 million, or 5.4%, from $14.06 billion in 2022. Net price realization of 7.0% drove growth, partially offset by unfavorable volume/mix of 2.1%. Gross margin rose 240 bps to 54.5%, and operating margin rose 300 bps to 21.5%. Net income attributable to KDP was $2.18 billion, or $1.55 per diluted share, compared with $1.01 per diluted share in 2022, which was affected by $477 million of intangible asset impairment charges. Cash provided by operating activities fell to $1.33 billion from $2.84 billion, primarily due to reduced accounts payable. The cash conversion cycle moved to approximately (8) days from (60) days, largely because supplier payment terms were reduced. Segment performance was mixed. U.S. Refreshment Beverages net sales grew 9.1% to $8.82 billion, with operating margin rising to 28.1%. U.S. Coffee net sales declined 5.4% to $4.07 billion as K-Cup pod volume fell 5.1% and appliance volume fell 10.3%. International net sales rose 15.0% to $1.92 billion. Walmart represented approximately 17% of consolidated net sales. The company ended the year with $52.13 billion in total assets, including $20.20 billion of goodwill and $23.29 billion of other intangible assets, and $11.10 billion in senior notes. Cash returned to shareholders included $1.14 billion in dividends paid and $706 million of share repurchases, with $2.92 billion remaining under the $4 billion program. Management highlighted headwinds from inflation in input, logistics, manufacturing and labor costs that may persist into 2024, and noted the company has increased pricing across much of its portfolio. The filing also disclosed an SEC Staff investigation into statements about the recyclability of K-Cup pods, which management does not expect to have a material impact, and a multidistrict antitrust litigation in which plaintiffs claim more than $5 billion in damages, with no loss accrued.
Feb 22, 2024
2022
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2022
Keurig Dr Pepper Inc. (KDP) reported net sales of $14.06 billion for the year ended December 31, 2022, up 10.8% from $12.68 billion in 2021, driven mainly by favorable net price realization of 10.6%. Net income attributable to KDP fell 33.1% to $1.44 billion, or $1.01 per diluted share, from $2.15 billion ($1.50 per diluted share), primarily due to the absence of the prior-year $524 million gain on the sale of its BodyArmor investment, higher interest expense, and a $477 million non-cash impairment of intangible assets led by Bai and Schweppes. Income from operations declined 10.0% to $2.61 billion, with operating margin falling to 18.5% from 22.8%, while gross margin decreased to 52.1% from 55.0% amid broad-based inflation in input, logistics and labor costs. On an adjusted basis, the company reported adjusted diluted EPS of $1.68 versus $1.60 in 2021, and constant currency adjusted diluted EPS increased approximately 5.0%. Management cited a $350 million BodyArmor litigation settlement in January 2022 as a significant one-time item, and a 2022 Strategic Refinancing of about $3 billion of senior unsecured notes. The company also made strategic investments in Nutrabolt ($871 million for an approximately 30% ownership interest), Tractor, and Athletic Brewing, and returned capital through $1.08 billion of cash dividends paid and $379 million of share repurchases. KDP's balance sheet at year-end showed total assets of $51.84 billion, including $20.07 billion of goodwill and $23.18 billion of other intangible assets, against total debt-related obligations of roughly $11.57 billion in Notes. Management stated it believes its operating cash flows will be sufficient to meet obligations for the next twelve months. Net cash provided by operating activities was $2.84 billion in 2022. Credit ratings were Baa2 (Moody's) and BBB (S&P), both stable, and the company had a $4 billion revolving credit agreement with no amounts drawn at year-end.
Feb 23, 2023
2021
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2021
Keurig Dr Pepper Inc. (KDP) reported net sales of $12.68 billion for the year ended December 31, 2021, up 9.2% from $11.62 billion in 2020, with volume/mix contributing 5.7%, net price realization 2.7%, and favorable FX translation 0.8%. Income from operations rose 16.7% to $2.89 billion, and net income attributable to KDP increased 62.0% to $2.15 billion, or $1.50 diluted EPS. The filing states adjusted diluted EPS of $1.60, up 14.3% from $1.40, and adjusted operating margin of 27.0%, down 50 bps. Results were helped by a $524 million gain on the sale of the BodyArmor equity interest to Coca-Cola, which contributed materially to the reported net income increase. Cash flow and balance sheet metrics improved. Net cash provided by operating activities was $2.87 billion, versus $2.46 billion in 2020. The company made net debt repayments of $1.72 billion in 2021 and reported senior unsecured notes of $11.73 billion at year-end. Management rated its credit as Baa2 at Moody's and BBB at S&P, both stable. The Board authorized a share repurchase program of up to $4 billion, effective January 1, 2022 through December 31, 2025, and the company stated it intends to expand its capital allocation strategy to include inorganic options, with acquisitions as the primary option. Key risks in the filing include ongoing COVID-19 effects, broad-based input cost inflation, dependence on large retailers (Walmart represented approximately 16% of consolidated net sales), reliance on third-party bottlers, and pending antitrust litigation against Keurig in which plaintiffs claim more than $5 billion in damages, which the company strongly disputes and has not accrued for. In January 2022, the company agreed to a $350 million BodyArmor settlement payment.
Feb 24, 2022
2020
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2020
Keurig Dr Pepper Inc. (KDP) reported net sales of $11.62 billion for 2020, up $498 million (4.5%) from $11.12 billion in 2019, driven by higher volume/mix of 5.6%, partially offset by lower net price realization of 0.6%. Net income attributable to KDP rose $71 million, or 5.7%, to $1.33 billion, and diluted EPS was $0.93 versus $0.88. Excluding items affecting comparability, adjusted net income increased 15.1% to $1.99 billion and adjusted diluted EPS rose 14.8% to $1.40. The filing attributes performance to productivity and merger synergies, volume/mix growth and lower discretionary spending, primarily marketing, while noting $150 million of pre-tax COVID-19 expenses and a $67 million non-cash impairment of the Bai brand intangible asset. COVID-19 had divergent effects: at-home demand for K-Cup pods and brewers grew strongly, while away-from-home channels, fountain foodservice and Mexico tourism declined. Coffee Systems and Packaged Beverages drove growth, while Beverage Concentrates net sales fell 6.3% to $1.33 billion. Operating cash flow was $2.46 billion, and net repayments of debt totaled $951 million related to notes, the 2019 KDP Term Loan and commercial paper. Total assets were $49.78 billion, including $20.18 billion of goodwill and $23.97 billion of other intangible assets, and the company stated it was in compliance with all debt covenants. The filing also notes that JAB's ownership fell to approximately 34%, so KDP is no longer a controlled company, and that the Board approved a 25% increase in the quarterly dividend in February 2021. Management expects heightened net sales volatility during and after the pandemic and continues to target rapid deleveraging within two to three years of the DPS Merger.
Feb 25, 2021
2019
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2019
Keurig Dr Pepper Inc. (KDP) reported net sales of $11.12 billion for the year ended December 31, 2019, up from $7.44 billion in 2018, primarily driven by the incremental impact of the DPS Merger completed on July 9, 2018. Net income attributable to KDP was $1.25 billion, or $0.88 diluted EPS, compared with $586 million, or $0.53, in 2018. On an adjusted basis, diluted EPS rose 17.3% to $1.22, and adjusted income from operations increased 10.3% to $2.89 billion, with adjusted operating margin expanding 220 bps to 26.0%. Operating cash flow was $2.47 billion, and the company repaid approximately $1.29 billion of senior notes, term loans and commercial paper during 2019. Management guided for 2020 net sales growth of 3.0% to 4.0%, adjusted diluted EPS of $1.38 to $1.40 (13% to 15% growth), $200 million of merger synergies, and a management leverage ratio of 3.5x to 3.8x by year-end. The company's balance sheet carries $11.975 billion of senior unsecured notes and total assets of $49.52 billion, with goodwill and other intangibles making up most of that figure. JAB Holding Company owns approximately 66% of fully diluted shares, making KDP a controlled company. Key risks highlighted include customer concentration (Walmart represented approximately 13% of consolidated net sales in 2019), dependence on K-Cup pods (about 80% of Coffee Systems net sales), declining CSD demand as consumers shift to NCBs, intangible asset impairment risk, and the leverage created by the merger. The filing also discloses a pending lawsuit by ABC against BodyArmor and a Proposition 65 acrylamide case, for which the company says it cannot estimate potential loss.
Feb 27, 2020
2018
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2018
Keurig Dr Pepper Inc. (KDP) reports its 2018 Annual Report on Form 10-K following the July 9, 2018 merger of Dr Pepper Snapple Group, Inc. (DPS) and Maple Parent Holdings Corp. (Keurig Green Mountain). Maple was the accounting acquirer, so 2018 net sales were $7,442 million, up from $4,226 million for the calendar year 2017 on a comparable basis as presented, and income from operations was $1,237 million. Net income attributable to KDP was $586 million, or $0.53 per diluted share, compared with $847 million, or $1.07 per diluted share, in 2017; the decline was driven mainly by the prior-year income tax benefit from the Tax Cuts and Jobs Act and higher interest, transaction and restructuring charges tied to the merger. On an adjusted pro forma basis, net sales rose 2.3% to $11,024 million and adjusted pro forma diluted EPS increased 22.4% to $1.04. The company's four segments are Beverage Concentrates ($669 million net sales), Packaged Beverages ($2,415 million), Latin America Beverages ($244 million) and Coffee Systems ($4,114 million). Coffee Systems generated the largest share of 2018 income from operations at $1,163 million. Walmart was the largest customer, representing approximately 14% of consolidated net sales. Total assets were $48,918 million, including goodwill of $20,011 million and other intangible assets of $23,967 million, and total stockholders' equity was $22,533 million. JAB Holding Company, through Maple Holdings B.V., owns approximately 72% of the fully diluted shares, and the company is a controlled company under NYSE rules. On the cash and debt side, net cash provided by operating activities was $1,613 million in 2018. Senior unsecured notes totaled $12,019 million carrying value at year-end, and the company paid down approximately $938 million of its term loan, commercial paper and revolver after the merger. Moody's (Baa2, negative outlook) and S&P (BBB, stable) rated the company's debt as investment grade. Management guided to 2019 adjusted diluted EPS growth of 15% to 17% (or $1.20 to $1.22), net sales growth of about 2%, and $200 million of merger synergies.
Feb 28, 2019
2017-A
Keurig Dr Pepper Annual Report (Amendment), Year Ended Dec 31, 2017
Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) filed this Form 10-K/A, Amendment No. 1, to its annual report for the fiscal year ended December 31, 2017. The original report was filed on February 14, 2018. This amendment adds the Part III information (directors, executive compensation, security ownership, related transactions and accountant fees) that was previously incorporated by reference from a proxy statement, and it adds new certifications. It does not amend financial statements. The filing also describes the January 29, 2018 Merger Agreement with Maple Parent Holdings Corp. and Salt Merger Sub, Inc. to combine with Keurig Green Mountain, Inc. Under the agreement, Maple Parent's shareholders would receive newly issued DPSG common stock equal to approximately 87% of outstanding common stock on a fully diluted basis after closing, and DPSG would pay a special cash dividend of $103.75 per share. Completion requires stockholder approval of a charter amendment that increases authorized shares and changes the company's name to Keurig Dr Pepper Inc. A preliminary proxy statement was filed on March 8, 2018. The compensation disclosure reports that 2017 net sales, cash flow from operations and net income reached their highest levels in the last five years, and income from operations remained near record levels. Against targets, 2017 net sales were $6,690 million versus a $6,731 million target, and income from operations (core basis) was $1,363 million versus a $1,417 million target. Annual MIP payouts ranged from 50% to 94% of target, and the 2015-2017 PSU cycle paid out at 81.25% of target. The say-on-pay vote in May 2017 passed with over 90% support. CEO Larry D. Young's 2017 total compensation was $8,921,147, and the reported CEO-to-median-employee pay ratio was 209 to 1. For investors, the amendment's most material items are the merger terms, the pending name change and the governance and compensation details that accompany a transaction of this scale. Ownership disclosures show BlackRock, Inc. at 11.4% and The Vanguard Group at 10.22% of common stock. Deloitte's fees for 2017 audit services were $3,650 thousand, up from $3,472 thousand in 2016, with no audit-related, tax or other fees reported.
Mar 20, 2018
2017
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2017
Dr Pepper Snapple Group, Inc. reported 2017 net sales of $6.69 billion, up from $6.44 billion in 2016, and net income of $1.08 billion, up from $847 million, with diluted EPS of $5.89 versus $4.54. Results were driven largely by a $297 million income tax benefit from the Tax Cuts and Jobs Act, which increased diluted EPS by $1.62, and by the January 31, 2017 Bai Brands Merger, which decreased diluted EPS by $0.26 in total. Income from operations fell 3% to $1.388 billion, reflecting higher SG&A expenses tied to the Bai acquisition. Total indebtedness was $4.479 billion at year-end. The dominant event for investors is the January 29, 2018 Merger Agreement with Maple Parent Holdings Corp., owner of Keurig Green Mountain, Inc. Upon closing, Maple Parent's stockholders will own approximately 87% of the combined company, now named Keurig Dr Pepper Inc., and DPS stockholders approximately 13% on a fully diluted basis. DPS will pay a special cash dividend of $103.75 per share, and the transaction requires stockholder approval, regulatory clearances, and a condition that post-closing total indebtedness not exceed $16.9 billion. Termination fees of $700 million apply in specified circumstances. KDP will be a controlled company under NYSE rules. Standalone, the company reports a strong brand portfolio, with a #1 position in U.S. flavored CSDs, and 2017 net sales split 90% U.S., 7% Mexico and the Caribbean, and 3% Canada. Share repurchases were suspended during the Keurig negotiations, and the company's Board declared dividends of $2.32 per share for 2017.
Feb 14, 2018
2016
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2016
Dr Pepper Snapple Group, Inc. reported 2016 net sales of $6,440 million, up from $6,282 million in 2015, with net income of $847 million compared with $764 million the prior year and diluted earnings per share of $4.54 versus $3.97. Income from operations rose to $1,433 million from $1,298 million, driven by higher gross profit and a favorable change in other operating items, partly offset by higher SG&A expenses. The company describes itself as the #1 flavored CSD company in the U.S. by IRi retail sales, with approximately 83% of 2016 bottler case sales volume coming from brands ranked #1 or #2 in their category. Net sales were 90% U.S., 7% Mexico and the Caribbean, and 3% Canada. The balance sheet expanded materially in late 2016 and early 2017. The company issued $1,950 million of senior unsecured notes during 2016, including $1,550 million in December, to fund the Bai Brands Merger, which was completed on January 31, 2017 for a preliminary purchase price of $1,649 million net of the company's previous ownership interest. Cash and cash equivalents rose to $1,787 million at year-end 2016 from $911 million, while total indebtedness was $4,478 million. Management expects 2017 net sales to increase approximately 4.5%, including a 3.0% contribution from the Bai Brands Merger, and expects to repurchase $450 million to $500 million of common stock during 2017. Shareholder returns remained a priority. Dividends declared were $2.12 per share in 2016, up from $1.92 in 2015, and the Board declared a first-quarter 2017 dividend of $0.58 per share. Share repurchases totaled approximately $519 million in 2016. Investors should weigh the higher debt load and goodwill and intangible assets, which the filing notes will increase further after the Bai Brands acquisition, against the company's stable cash flows and its concentration in the U.S. carbonated soft drink and non-carbonated beverage markets.
Feb 14, 2017
2015
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2015
Dr Pepper Snapple Group, Inc. reported net sales of $6.28 billion for 2015, up from $6.12 billion in 2014, with net income of $764 million, or $3.97 diluted earnings per share, compared with $703 million and $3.56 in 2014. Income from operations rose $118 million to $1,298 million. Volume (BCS) increased 2%, with the U.S. and Canada up 1% and Mexico and the Caribbean up 8%. Gross margin held at 59.3%, and SG&A expenses fell $21 million. Management cited favorable product and package mix, higher branded volumes and higher pricing as the main drivers of the net sales increase, partly offset by $115 million of unfavorable foreign currency translation. The company generated $991 million of operating cash flow in 2015 and spent $179 million on capital expenditures. It returned $521 million through share repurchases and paid $355 million in dividends. It issued $750 million of senior unsecured notes in November 2015 and repaid the $500 million 2016 Notes at maturity in January 2016. Total indebtedness was $3,382 million at year end, and cash and equivalents rose to $911 million. The Board declared a $0.53 quarterly dividend in early 2016, about 10% above the prior quarter, and authorized an additional $1 billion of share repurchases on February 11, 2016, with the company expecting to repurchase $650 million to $700 million in 2016. For 2016, management said it believes net sales could increase approximately 1% over 2015, that commodity costs are expected to be flat on a constant volume/mix basis, and that capital expenditures will be about 3% of net sales. Key risks named in the filing include consumer shifts away from CSDs toward NCBs, dependence on large retailers (Walmart was about 12% of consolidated net sales), reliance on third-party bottlers, commodity and fuel cost volatility, and a $7 million impairment of the Garden Cocktail brand in 2015.
Feb 23, 2016
2014
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2014
Dr Pepper Snapple Group, Inc. reported net sales of $6.121 billion for 2014, up $124 million, or approximately 2%, from $5.997 billion in 2013, and net income of $703 million, up $79 million, or approximately 13%. Diluted earnings per share rose to $3.56 from $3.05. Income from operations increased $134 million to $1.180 billion, driven by higher gross profit and the absence of the prior-year $56 million multi-employer pension plan withdrawal charge, partly offset by higher SG&A expenses. Gross margin improved to 59.3% from 58.3%. The company, a non-alcoholic beverage brand owner, manufacturer and distributor in the U.S., Canada and Mexico, operates three segments: Beverage Concentrates (net sales of $1.228 billion, SOP of $790 million), Packaged Beverages ($4.361 billion net sales, SOP of $636 million) and Latin America Beverages ($532 million net sales, SOP of $78 million). The filing states a 20.5% share of the U.S. CSD market in 2014 by retail sales and that approximately 84% of volume came from brands ranked #1 or #2 in their category. Cash provided by operating activities rose to $1.022 billion, and the company repurchased $400 million of stock and paid $317 million in dividends. The company declared aggregate 2014 dividends of $1.64 per share, up from $1.52. In February 2015 the Board authorized an additional $1 billion of share repurchases, and the first-quarter 2015 dividend was $0.48 per share. Management expects 2015 net sales to be up approximately 1% and commodity costs to be down approximately 1% on a constant volume/mix basis. Total indebtedness was $2.591 billion at year-end, and debt ratings were Baa1 (Moody's) and BBB+ (S&P), both with stable outlooks.
Feb 19, 2015
2013
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2013
Dr Pepper Snapple Group, Inc. is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico, with net sales of $5,997 million in 2013 (88% U.S., 4% Canada, 8% Mexico and the Caribbean). Net sales were essentially flat versus $5,995 million in 2012, while net income declined to $624 million from $629 million. Diluted earnings per share rose to $3.05 from $2.96, supported by share repurchases of 8.7 million shares (about $400 million). Results were affected by a $56 million non-cash charge for the intended withdrawal from the Soft Drink Industry Local Union 710 Pension Fund, and by tax and indemnity items tied to the conclusion of an IRS audit (a $463 million income tax benefit alongside $430 million of other expense, net, as the company no longer expects to collect those amounts from Mondelēz). Operating results were mixed across segments. Beverage Concentrates net sales rose to $1,229 million, Packaged Beverages declined to $4,306 million, and Latin America Beverages grew to $462 million. Total volume (BCS) fell 2%, with CSD and NCB volumes each down 2%, reflecting category headwinds from health and wellness trends. Income from operations fell to $1,046 million from $1,092 million. Cash from operating activities increased to $866 million from $482 million, largely due to the absence of 2012 tax payments of $531 million related to the PepsiCo and Coca-Cola licensing agreements. Management expects 2014 net sales to be up only 1% versus 2013, and the company declared a $0.41 per share dividend for the first quarter of 2014. The balance sheet shows total assets of $8,201 million, total debt of $2,574 million, and cash of $153 million at year-end 2013. The company repaid $250 million of 6.12% senior notes in May 2013, and S&P raised its rating to BBB+ in November 2013. The company's largest customer, Wal-Mart, represented approximately 12% of consolidated net sales.
Feb 20, 2014
2012
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2012
Dr Pepper Snapple Group, Inc. is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico, with a portfolio of flavored CSDs and NCBs. In 2012 net sales were $5,995 million, up from $5,903 million in 2011, with 89% of net sales from the U.S. Net income rose to $629 million from $606 million, and diluted EPS was $2.96 versus $2.74. Income from operations increased to $1,092 million from $1,024 million, with gross margin of 58.3% compared with 57.9% a year earlier. The company operates three segments: Beverage Concentrates (net sales $1,221 million), Packaged Beverages ($4,358 million) and Latin America Beverages ($416 million). Volume (BCS) decreased 1% for the year, with NCB volume down 5% while CSD volume was flat. Cash provided by operating activities fell to $458 million from $760 million, mainly due to $531 million of tax payments tied to the PepsiCo and Coca-Cola licensing agreements. Cash and cash equivalents ended the year at $366 million, and total indebtedness was $2,804 million. Capital returns remained significant: the company repurchased 9.5 million shares for about $400 million and declared dividends of $1.36 per share, up from $1.21. Management also noted that a $250 million 6.12% note due May 2013 is expected to be refinanced in the second quarter of 2013, and that the Board declared a $0.38 quarterly dividend in the first quarter of 2013.
Feb 21, 2013
2011
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2011
Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported net sales of $5.90 billion for 2011, up $267 million, or 5%, from 2010, and net income of $606 million, up $78 million, or 15%. Diluted earnings per share were $2.74, versus $2.17 in 2010. The company describes itself as a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico, operating through three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. Net sales were 89% U.S., 4% Canada and 7% Mexico and the Caribbean. Cash flow from operations fell to $760 million from $2,535 million in 2010, mainly because 2010 included one-time nonrefundable cash receipts of $900 million from PepsiCo and $715 million from Coca-Cola, which were recorded as deferred revenue. The company also cited about $531 million of tax payments due primarily in the first quarter of 2012 as a result of those agreements. Total indebtedness was $2,712 million at December 31, 2011, and debt ratings were Baa1 (Moody's) and BBB (S&P), both stable. Capital returns were significant: the company repurchased about 14 million shares for roughly $522 million in 2011, paid dividends of $1.21 per share, and the Board raised total share repurchase authorization to $3 billion in November 2011. The filing also reports no goodwill or intangible impairment at year-end 2011, and that Wal-Mart represented approximately 14% of consolidated net sales.
Feb 22, 2012
2010
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2010
Dr Pepper Snapple Group, Inc. reported net sales of $5.64 billion for 2010, up $105 million, or 2%, from 2009, and net income of $528 million, compared with $555 million in 2009. Diluted EPS was $2.17 in both years. The company is a non-alcoholic beverage brand owner, manufacturer and distributor in the U.S., Canada and Mexico, with 89% of 2010 net sales from the U.S. Its three segments are Beverage Concentrates ($1.16 billion net sales), Packaged Beverages ($4.10 billion) and Latin America Beverages ($382 million). Beverage Concentrates was the largest contributor to segment operating profit at $745 million. The year's largest financial developments were two one-time licensing payments that were recorded as deferred revenue: $900 million from PepsiCo in February 2010 and $715 million from Coca-Cola in October 2010. Both are being recognized as net sales ratably over an estimated 25-year customer relationship life. Operating cash flow rose to $2.54 billion from $865 million in 2009, primarily because of these receipts. The company repurchased about 31 million shares for approximately $1.1 billion and paid $194 million in dividends. Dividends declared totaled $0.90 per share for 2010, versus $0.15 in 2009. Balance sheet activity included a $573 million payment on the 2018 Notes, including a $96 million premium, which produced a $100 million loss on early extinguishment of debt. Total indebtedness was $2,094 million at year-end, and the company issued $500 million of 2.90% senior notes in January 2011. Interest expense fell to $128 million from $243 million. The filing also flags risks including dependence on large retailers, reliance on third-party bottlers, goodwill and intangible impairment exposure (intangibles were about $5.7 billion of $8.9 billion total assets), and future tax payments of approximately $90 million in 2011 and $500 million in 2012 tied to the PepsiCo and Coca-Cola agreements.
Feb 22, 2011
2009
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2009
Dr Pepper Snapple Group, Inc. reported net sales of $5.53 billion for 2009, down $179 million (3%) from $5.71 billion in 2008, primarily due to the termination of the Hansen Natural Corporation distribution agreement and unfavorable foreign currency rates in Mexico. Net income rebounded to $555 million, or $2.17 per diluted share, compared with a net loss of $312 million (a $1.23 per-share loss) in 2008, which had included $1.04 billion of non-cash impairment charges. Income from operations was $1,085 million versus a loss of $168 million the prior year. Cash provided by operating activities rose to $865 million, and the company ended 2009 with $280 million of cash and total indebtedness of $2,971 million. The company's three segments are Beverage Concentrates (net sales of about $1.06 billion, segment operating profit of $683 million), Packaged Beverages (net sales of $4.11 billion, operating profit of $573 million) and Latin America Beverages (net sales of $357 million, operating profit of $54 million). The company describes itself as the #1 flavored CSD company in the United States, with a 21.0% share of the U.S. CSD market in 2009 according to The Nielsen Company. Management declared its first cash dividend of $0.15 per share in the fourth quarter of 2009, followed by a second $0.15 dividend in February 2010, and the Board authorized up to $1 billion in share repurchases. A significant subsequent event was the February 26, 2010 completion of licensing certain brands to PepsiCo after PepsiCo's acquisitions of The Pepsi Bottling Group and PepsiAmericas. The company received a one-time cash payment of $900 million, which will be recorded as deferred revenue and recognized as net sales over an estimated 25-year customer relationship life. The company used part of the proceeds to reduce total debt obligations to $2.55 billion.
Mar 1, 2010
2008
Keurig Dr Pepper Annual Report, Year Ended Dec 31, 2008
Dr Pepper Snapple Group, Inc. is a leading integrated brand owner, bottler and distributor of non-alcoholic beverages in the United States, Canada and Mexico. It began trading on the New York Stock Exchange under the symbol "DPS" on May 7, 2008, after Cadbury plc distributed its Americas Beverages business to shareholders. In 2008 the company reported net sales of $5.71 billion (89% United States, 4% Canada, 7% Mexico and the Caribbean), but posted an operating loss of $168 million and a net loss of $312 million, driven by non-cash impairment charges of $1,039 million ($696 million after tax). The impairments covered the Snapple brand ($278 million), Bottling Group distribution rights ($581 million) and Bottling Group goodwill ($180 million), which the company attributed to deteriorating fourth-quarter economic conditions and higher discount rates. The balance sheet was reshaped by the separation from Cadbury. Total assets were $8.64 billion and total stockholders' equity fell to $2.61 billion from $5.02 billion. Long-term debt to third parties rose to $3.52 billion, funded by a $2.2 billion term loan A, $1.7 billion of senior unsecured notes and a $1.7 billion bridge loan that was later repaid. Operating cash flow was $709 million and capital expenditures were $304 million. The company stated it intends to use cash to repay debt and does not anticipate paying cash dividends in the short term. No shares were repurchased in 2008. The company reported a 19.7% share of the United States CSD market segment in 2008 (retail sales, The Nielsen Company), up from 19.4% in 2007. Investors should weigh the strong brand positions and integrated model against the lower 2008 profitability, the Bottling Group's weakened results, the loss of the glaceau and Hansen distribution agreements, and the debt load.
Mar 26, 2009