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KDP · Keurig Dr Pepper

50 filings

10-Q

KDP 10-Q Quarterly Reports

Keurig Dr Pepper - 50 quarterly reports

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

KDP filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 216 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’17Jun ’17
  2. Leadership change8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Material agreement8-K · Dec ’25Dec ’25
  1. 2026-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2026

    Keurig Dr Pepper Inc. (KDP) reported results for the quarter ended June 30, 2026, in which the acquisition of JDE Peet's, completed April 1, 2026, contributed to results beginning in the second quarter. Net sales for the second quarter were $7,309 million, up from $4,163 million a year earlier, an increase of 75.6%. Income from operations fell 30.1% to $628 million, as SG&A rose to $2,397 million, including transaction and integration costs and a $314 million inventory step-up charge in cost of sales. Net income attributable to KDP was $142 million, compared with $547 million, and diluted EPS was $0.04 versus $0.40. Interest expense, net rose to $336 million from $180 million, reflecting acquisition-related debt. The acquisition was financed through a $3.6 billion delayed draw term loan, approximately $6 billion of senior unsecured notes, a $4 billion JV Investment in the Pod Manufacturing JV (in which KDP retains a 51% interest), and $4.5 billion of Convertible Preferred Stock. Total assets rose to $87,619 million from $55,459 million at December 31, 2025, and short-term borrowings and current portion of long-term obligations increased to $8,394 million. Cash flow from operations for the first six months was $1,176 million, compared with $640 million, while investing outflows were $16,899 million, largely for acquisitions. Moody's and S&P downgraded KDP's ratings following the transaction but kept them investment grade, with outlooks listed as stable. The filing also describes the planned Separation of the beverage and coffee businesses, which is expected in early 2027, subject to conditions. It discloses a legal matter in which the antitrust plaintiffs collectively claim more than $1.5 billion in damages, with no accrual recorded. It also notes that KDP has not recorded receivables for pending tariff refund claims.

    Aug 10, 2026
  2. 2026-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2026

    Keurig Dr Pepper Inc. reported first-quarter 2026 net sales of $3,976 million, up from $3,635 million a year earlier, while net income fell to $270 million from $517 million and diluted EPS fell to $0.20 from $0.38. Income from operations declined to $756 million from $801 million, as SG&A rose to $1,342 million, driven in part by costs tied to the JDE Peet's Acquisition and the planned Separation. Interest expense, net more than doubled to $281 million, and other expense was $118 million, mainly from realized and unrealized losses on FX forward contracts related to funding the acquisition. The quarter was dominated by financing for the JDE Peet's Acquisition. The company issued approximately $6 billion of senior unsecured notes (Maple Notes), drew $3.6 billion under a delayed draw term loan, completed a $4.5 billion convertible preferred stock investment, and sold a 49% interest in the Pod Manufacturing JV for $4 billion. Total cash, cash equivalents, and restricted cash rose to $18,716 million at March 31, 2026, including approximately $17.8 billion of restricted cash held for the acquisition. Total assets increased to $73,140 million from $55,459 million, and long-term obligations rose to $20,891 million from $13,036 million. The company stated that it acquired 97.75% of JDE Peet's outstanding ordinary shares, with aggregate consideration for tendered shares of approximately €15.11 billion, and intends to acquire the remainder. Moody's and S&P downgraded KDP's ratings following the transaction announcement but kept them investment grade. JDE Peet's will contribute to results beginning in the second quarter of 2026.

    Apr 23, 2026
  3. 2025-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2025

    Keurig Dr Pepper Inc. reported third-quarter 2025 net sales of $4,306 million, up 10.7% from $3,891 million a year earlier, with net income rising 7.5% to $662 million and diluted EPS of $0.49 versus $0.45. Growth was driven mainly by volume/mix (6.4 percentage points, including GHOST) and net price realization (4.2 percentage points). Gross margin declined 70 bps to 54.3%, while interest expense, net rose 77.4% to $188 million, largely due to unfavorable unrealized mark-to-market activity. For the first nine months of 2025, net sales were $12,104 million (up 7.3%) and net income was $1,726 million (up 8.9%). The most significant developments are the pending JDE Peet's Acquisition, for which KDP entered a Bridge Credit Agreement of up to €16.2 billion, and planned financing through a JV Investment of $4 billion for a 49% stake in the Pod Manufacturing JV and a $3 billion Convertible Preferred Stock investment. KDP also intends to separate its beverage and coffee portfolios after the JDE Peet's closing. The filing notes that Moody's placed KDP's ratings under review for downgrade and S&P placed KDP on CreditWatch Negative as of August 25, 2025. Closing of the JDE Peet's Acquisition is expected in the first half of 2026, subject to regulatory approvals and tender acceptance. Liquidity remained solid at period end, with $516 million of cash and cash equivalents, $1,391 million of commercial paper outstanding, and the full $4.3 billion revolving credit capacity undrawn. Net cash provided by operating activities was $1,279 million for the first nine months, and KDP paid $937 million in cash dividends. The company did not repurchase common stock in the first nine months of 2025. Litigation in the Multidistrict Antitrust Litigation claims more than $5 billion in damages, and KDP has not accrued a loss contingency.

    Oct 28, 2025
  4. 2025-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2025

    Keurig Dr Pepper Inc. reported second-quarter 2025 net sales of $4,163 million, up 6.1% from $3,922 million in the second quarter of 2024, and net income of $547 million, up 6.2% from $515 million. Diluted EPS was $0.40 versus $0.38. Income from operations rose 4.3% to $898 million, and interest expense, net fell 11.8% to $180 million, driven mainly by a favorable change in unrealized mark-to-market activity. For the first six months of 2025, net sales were $7,798 million (up 5.5%) and net income was $1,064 million (up 9.8%), with diluted EPS of $0.78 versus $0.70. The U.S. Refreshment Beverages segment drove growth, with net sales up 10.5% in the quarter, aided by the acquisition of GHOST, while U.S. Coffee net sales were down 0.2% and International down 1.8%. K-Cup pod volume fell 2.6% and appliance volume fell 20.1% in the quarter. Balance sheet activity included a $2 billion senior notes issuance on May 5, 2025, with proceeds used to repay commercial paper, and the termination of the Term Loan Agreement on May 7, 2025. KDP entered a new $4 billion revolving credit agreement maturing March 31, 2030, with none drawn at June 30, 2025. Total assets were $54,368 million and total stockholders' equity was $24,985 million. Inventories rose to $1,741 million from $1,299 million at year-end 2024. Net cash provided by operating activities was $640 million for the first six months of 2025, compared with $742 million a year earlier, and no shares were repurchased in the first six months of 2025, leaving $1,810 million available under the repurchase authorization. The filing also discloses the Dyla acquisition, completed June 2, 2025 for aggregate consideration of $98 million, and the GHOST Transactions, under which KDP holds 60% of GHOST and must buy the remaining 40% in 2028. The Multidistrict Antitrust Litigation over Keurig single-serve products claims more than $5 billion in damages; KDP has not accrued for a loss contingency and says it cannot predict the outcome.

    Jul 24, 2025
  5. 2025-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2025

    Keurig Dr Pepper Inc. reported first-quarter 2025 net sales of $3.64 billion, up 4.8% from $3.47 billion in the prior-year quarter, with net income of $517 million, up 13.9%, and diluted EPS of $0.38, up 15.2% from $0.33. Growth was led by U.S. Refreshment Beverages, where net sales rose 11.0% to $2,323 million, including a contribution from the GHOST acquisition. U.S. Coffee net sales declined 3.7% to $877 million and International net sales declined 6.3% to $435 million, with unfavorable FX translation in the International segment. Income from operations rose 4.7% to $801 million, while interest expense, net fell 16.9% to $148 million, largely due to a favorable change in unrealized mark-to-market activity. Total debt-related obligations shifted during the quarter. Commercial paper rose to $2,972 million from $1,616 million, and the company repaid the first tranche of its Term Loan Agreement ($990 million at December 31, 2024). On March 31, 2025, KDP entered into a $4 billion revolving credit agreement maturing March 31, 2030, which replaced its previous revolving credit facility and had no amounts outstanding at quarter end. Cash and cash equivalents increased to $653 million, and net cash provided by operating activities was $209 million compared with $85 million a year earlier. KDP did not repurchase any common stock during the quarter and had $1,810 million remaining under its share repurchase authorization, while paying cash dividends of $312 million. The company also completed the GHOST Transactions, acquiring a 60% interest effective December 31, 2024 for $999 million and obtaining distribution rights effective March 3, 2025, and disclosed that JAB Holding Company's affiliate sold approximately 87 million shares in February 2025, leaving JAB with less than 10% ownership. Management reports that disclosure controls were effective as of March 31, 2025, and the company disclosed ongoing antitrust litigation related to Keurig with plaintiffs claiming more than $5 billion in damages, for which no loss accrual has been recorded.

    Apr 24, 2025
  6. 2024-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2024

    Keurig Dr Pepper Inc. reported third-quarter 2024 net sales of $3,891 million, up $86 million, or 2.3%, from $3,805 million a year earlier. Income from operations rose $6 million, or 0.7%, to $902 million, and net income increased $98 million, or 18.9%, to $616 million, primarily driven by lower interest expense ($106 million versus $237 million). Diluted EPS was $0.45 compared with $0.37. For the first nine months of 2024, net sales were $11,281 million (up 3.1%), net income was $1,585 million, and net cash provided by operating activities was $1,370 million versus $1,032 million in the prior-year period. Balance sheet and capital return activity were significant during the period. The company issued $3,000 million of senior unsecured notes in March 2024 and repaid $1,150 million of Notes, while repurchasing $1,105 million of common stock and paying $883 million in cash dividends in the first nine months. Total long-term obligations and short-term borrowings were $14,885 million at September 30, 2024, and $1,810 million remained available under the share repurchase authorization. The company also completed the Kalil Acquisition in August 2024 for total consideration of $103 million and raised its annualized dividend rate 7.0% to $0.92 per share. After quarter end, on October 23, 2024, KDP agreed to acquire a 60% controlling interest in GHOST Lifestyle LLC for aggregate consideration of $990 million, with the remaining 40% to be acquired in 2028. The filing also discloses a pending antitrust litigation in which plaintiffs claim more than $5 billion in damages; the company has not accrued a loss contingency and states it cannot predict the outcome.

    Oct 24, 2024
  7. 2024-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2024

    Keurig Dr Pepper Inc. reported second-quarter 2024 net sales of $3,922 million, up 3.5% from $3,789 million a year earlier, with income from operations rising 12.0% to $861 million and diluted EPS of $0.38 versus $0.36. Gross margin expanded 150 bps to 55.4%, led by a net benefit from ingredients, materials, and productivity, while net price realization and volume/mix both contributed to growth. Net income rose 2.4% to $515 million, though interest expense climbed 18.6% to $204 million on higher weighted average borrowings, and the effective tax rate increased to 23.4% from 17.9%. For the first six months of 2024, net sales were $7,390 million (up 3.5%) and income from operations was $1,626 million (up 20.2%). Operating cash flow rose to $742 million from $452 million, driven by working capital, while the company spent $1,105 million on share repurchases and paid $591 million in dividends. Long-term obligations increased to $12,406 million after the March 2024 issuance of $3 billion in senior notes, which funded buybacks, commercial paper repayment, and the repayment of the 2024 Notes. As of June 30, 2024, $1,810 million remained under the $4 billion repurchase authorization, and the company had no borrowings under its $4 billion Revolving Credit Agreement. The filing also discloses a pending Multidistrict Antitrust Litigation in which plaintiffs claim more than $5 billion in damages, for which no loss accrual has been recorded, and an agreement in principle with the SEC Staff to resolve an investigation of K-Cup recyclability statements with a $1.5 million penalty. Management also announced the planned acquisition of Kalil Bottling Company's assets, expected to close in the third quarter of 2024.

    Jul 25, 2024
  8. 2024-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2024

    Keurig Dr Pepper Inc. reported first-quarter 2024 net sales of $3,468 million, up from $3,353 million in the prior-year period, with income from operations rising to $765 million from $584 million. Net income was $454 million, compared with $467 million a year earlier, and diluted EPS was $0.33, flat year over year. Management attributed the sales increase mainly to favorable net price realization (3.1%) and FX translation (0.6%), partly offset by unfavorable volume/mix (0.3%). Gross margin expanded to 55.9% from 52.0%, helped by earned equity from distribution agreement milestones, while interest expense rose to $178 million from $23 million, driven by unfavorable mark-to-market activity on interest rate contracts. The balance sheet shifted meaningfully during the quarter. KDP issued $3 billion of senior unsecured notes in March 2024, used to repay the $1.15 billion 2024 Notes at maturity, repurchase shares, and repay commercial paper. Long-term obligations rose to $12,929 million from $9,945 million, while short-term borrowings fell to $1,908 million from $3,246 million. In March 2024, KDP repurchased 35 million shares for $1,012 million in connection with a JAB BevCo B.V. secondary offering, and total repurchases for the quarter were $1,105 million, leaving $1,810 million available under the authorized program. Cash flow from operations was $85 million, compared with $71 million in the prior year, and capital expenditures paid were $158 million. The filing also discloses a pending antitrust matter in which plaintiffs in the Multidistrict Antitrust Litigation collectively claim more than $5 billion in damages. Keurig disputes the merits and has not accrued a loss contingency. Separately, the filing describes a CEO succession plan under which Tim Cofer is expected to succeed Robert Gamgort as CEO during the second quarter of 2024, and a 2024 network optimization involving closure of the Williston, Vermont manufacturing facility with pre-tax charges estimated at $30 million to $40 million.

    Apr 25, 2024
  9. 2023-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2023

    Keurig Dr Pepper Inc. reported third-quarter 2023 net sales of $3,805 million, up 5.1% from $3,622 million a year earlier, driven by favorable net price realization across all segments (5.5%), partially offset by unfavorable volume/mix (1.4%). Income from operations rose to $896 million from $394 million, largely because the prior-year period included a $311 million non-cash impairment charge for Bai. Net income attributable to KDP was $518 million, or $0.37 per diluted share, compared with $180 million, or $0.13, in the prior-year quarter. For the first nine months of 2023, net sales were $10,947 million, up 6.8%, and diluted EPS was $1.05 versus $0.69. Cash generation weakened. Net cash provided by operating activities was $1,032 million for the first nine months of 2023 versus $2,098 million in the prior-year period, which the filing attributes mainly to a reduction in accounts payable and changes in the cash conversion cycle. The cash conversion cycle was approximately (23) days at September 30, 2023, compared with (71) days a year earlier, and the filing notes that the decrease in DPO reflected reduced payment terms for certain suppliers. Short-term borrowings and the current portion of long-term obligations rose to $2,798 million, including $1,149 million of commercial paper, and cash and cash equivalents were $260 million at quarter end. Capital allocation and corporate developments included a 7.5% increase in the annualized dividend to $0.86 per share, $457 million of share repurchases in the first nine months with $3,164 million remaining under the authorization, a $300 million investment for a 33.3% stake in La Colombe, and an announced Chief Operating Officer appointment (Tim Cofer) expected to lead to a CEO transition in the second quarter of 2024. The filing also describes ongoing antitrust litigation in which plaintiffs claim more than $5 billion in damages, which the company strongly disputes and has not accrued for.

    Oct 26, 2023
  10. 2023-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2023

    Keurig Dr Pepper Inc. reported second-quarter 2023 net sales of $3.79 billion, up from $3.55 billion in the prior-year quarter, with net sales growth of 6.6% driven by favorable net price realization of 8.2%, partially offset by unfavorable volume/mix of 2.1%. Income from operations rose to $769 million from $572 million, and net income attributable to KDP increased to $503 million, or $0.36 per diluted share, compared with $218 million, or $0.15 per diluted share, a year earlier. The prior-year quarter included a $169 million loss on early extinguishment of debt, which did not recur. Gross margin expanded 390 basis points to 53.9%, while SG&A expenses rose 5.6% to $1.27 billion, driven by higher marketing expense and broad-based inflation. For the first six months of 2023, net sales were $7.14 billion, up 7.7%, and net income attributable to KDP was $970 million, or $0.69 per diluted share. Operating cash flow was $452 million, compared with $1.34 billion in the first six months of 2022, a decline attributed largely to a reduction in accounts payable. Cash and cash equivalents were $278 million at June 30, 2023, and total debt-related obligations included $2.64 billion of short-term borrowings and current portion of long-term obligations. The company repurchased $457 million of common stock in the first half and declared dividends of $0.40 per share, and it stated it was in compliance with all debt covenants. Subsequent to the quarter, KDP agreed in July 2023 to invest $300 million for a 33.3% ownership interest in La Colombe, subject to regulatory approval and expected to close in the third quarter of 2023. The company also disclosed that plaintiffs in the Multidistrict Antitrust Litigation claim more than $5 billion in damages; KDP strongly disputes the merits and has not accrued a loss contingency.

    Jul 27, 2023
  11. 2023-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2023

    Keurig Dr Pepper Inc. (KDP) reported first-quarter 2023 net sales of $3,353 million, up 8.9% from $3,078 million in the first quarter of 2022, driven by favorable net price realization of 9.9% that was slightly offset by unfavorable volume/mix of 1.0%. Net income attributable to KDP declined 20.2% to $467 million, and diluted EPS was $0.33 versus $0.41 a year earlier. The decline was primarily driven by the prior-year gain on the BodyArmor litigation settlement and lower asset sale-leaseback activity; income from operations fell 39.5% to $584 million, and the operating margin was 17.4% versus 31.4%. On an adjusted basis, the company reported adjusted income from operations of $699 million (20.8% operating margin) in the first quarter of 2023 compared with $732 million in the prior year period. Segment performance was mixed. U.S. Refreshment Beverages net sales rose 12.7% to $2,007 million, but its income from operations fell 30.4% to $490 million. U.S. Coffee net sales declined 1.3% to $931 million, with brewer volume down 25.7% in the quarter, and income from operations fell 9.0% to $232 million. International net sales grew 17.2% to $415 million, and its income from operations rose 25.0% to $80 million. Unallocated corporate costs were $218 million versus $57 million in the prior year period. From a balance sheet and cash perspective, cash and cash equivalents fell to $204 million from $535 million at December 31, 2022, and net cash provided by operating activities was $71 million versus $663 million a year earlier. The company repurchased and retired $231 million of common stock and paid $281 million in cash dividends, while short-term borrowings and the current portion of long-term obligations rose to $2,310 million, largely from commercial paper. As of March 31, 2023, $3,390 million remained available under the $4 billion share repurchase program, and the company stated it was in compliance with all debt covenants.

    Apr 27, 2023
  12. 2022-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2022

    Keurig Dr Pepper Inc. (KDP) reported third-quarter 2022 net sales of $3.62 billion, up 11.4% from $3.25 billion a year earlier, driven by favorable net price realization of 12.1% across all segments. However, income from operations fell 50.4% to $394 million, primarily due to a non-cash impairment charge of $311 million on the Bai brand in the Packaged Beverages segment, along with higher SG&A expenses. Net income attributable to KDP decreased 66.0% to $180 million, and diluted EPS was $0.13 compared with $0.37 a year earlier. Interest expense rose to $207 million from $116 million, and the effective tax rate was 2.2%, reflecting a revaluation of state deferred tax liabilities. For the first nine months of 2022, net sales rose 10.4% to $10.25 billion and net income attributable to KDP fell 24.6% to $983 million. Results were affected by the $311 million Bai impairment, a $299 million gain on the BodyArmor litigation settlement, and a $217 million loss on early extinguishment of debt tied to the April 2022 strategic refinancing, in which KDP issued about $3 billion of senior unsecured notes. Gross margin declined 400 basis points to 52.0% for the nine months, and management cited broad-based inflation, supply chain disruptions and pricing actions as key factors. Cash flow from operations was $2.10 billion for the nine months, and the company reported $925 million of cash and cash equivalents at September 30, 2022, with its $4 billion revolving credit agreement undrawn. KDP also announced a 6.7% increase in its annualized dividend to $0.80 per share, a $30 million acquisition of the Atypique brand, and a Red Bull distribution partnership in Mexico expected to begin in the fourth quarter of 2022. No shares were repurchased under the $4 billion authorization during the third quarter.

    Oct 27, 2022
  13. 2022-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2022

    Keurig Dr Pepper Inc. reported second-quarter 2022 net sales of $3,554 million, up 13.2% from $3,140 million a year earlier, driven by favorable net price realization of 10.4% and volume/mix growth of 3.1%. Income from operations fell to $572 million from $734 million, and net income attributable to KDP declined to $218 million ($0.15 diluted EPS) from $448 million ($0.31), reflecting a $169 million loss on early extinguishment of debt tied to the April 2022 Strategic Refinancing, higher SG&A expenses, and an income tax benefit. Gross margin fell 640 bps to 50.0% and operating margin fell 730 bps to 16.1%, with management citing broad-based inflation, supply chain disruptions, and higher logistics costs. On an adjusted, constant-currency basis, income from operations decreased 0.6%. For the first six months of 2022, net sales rose 9.8% to $6,632 million and net income attributable to KDP rose 3.9% to $803 million, helped by a $299 million gain on the BodyArmor litigation settlement and a $50 million gain on the sale of an equity method investment. The company's notes carried a principal amount of $11,743 million at June 30, 2022, and it had no short-term borrowings outstanding. Cash flow from operations was $1,339 million for the first six months versus $1,139 million a year earlier, and the company repurchased $88 million of common stock under its $4 billion program. Management noted that the company expects inflationary and supply chain headwinds to continue through the remainder of 2022 and that it has raised prices on a number of products, which may reduce volume or net sales. The filing also disclosed a leadership transition: Ozan Dokmecioglu becomes President and CEO effective July 29, 2022, and George Lagoudakis becomes interim CFO.

    Jul 28, 2022
  14. 2022-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2022

    Keurig Dr Pepper Inc. (KDP) reported first-quarter 2022 net sales of $3,078 million, up $176 million, or 6.1%, from $2,902 million in the prior year period. Net income attributable to KDP rose $260 million, or 80.0%, to $585 million, and diluted EPS increased 78.3% to $0.41 from $0.23. The results were supported by a $299 million gain on the BodyArmor litigation settlement and a $50 million gain on the sale of an equity method investment, while gross margin declined 150 bps to 53.6% amid broad-based inflation. Income from operations rose $326 million, or 50.9%, to $966 million, and operating margin increased 930 bps to 31.4%. The filing's non-GAAP adjusted income from operations was $732 million, a 23.8% adjusted operating margin, and the Company stated that constant currency adjusted income from operations decreased 1.2%. The Coffee Systems segment was the clear weak spot, with net sales down 4.3% to $1,093 million and income from operations down 27.2% to $268 million, reflecting K-Cup pod volume declines of 5.2% as the Company prioritized production to rebuild inventory. Packaged Beverages net sales rose 13.2% to $1,480 million, and Beverage Concentrates and Latin America Beverages also grew. Management said inflationary pressures and supply chain disruptions are expected to remain headwinds throughout 2022, and that it has raised prices on a number of products. On the balance sheet, total assets were $51,244 million and long-term obligations were $11,584 million, with no short-term borrowings outstanding at March 31, 2022. Cash flow from operations was $663 million, versus $546 million a year earlier. Subsequent to quarter end, on April 22, 2022, KDP issued $3 billion of senior unsecured notes to refinance higher-coupon debt, reducing its weighted average coupon from 3.671% to 3.595%. The Company also disclosed a $4 billion share repurchase authorization running through 2025, but it did not repurchase any shares in the quarter.

    Apr 28, 2022
  15. 2021-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2021

    Keurig Dr Pepper Inc. (KDP) reported third-quarter 2021 net sales of $3,250 million, up 7.6% from $3,020 million in the prior-year quarter, with net income attributable to KDP of $530 million, or $0.37 diluted EPS, versus $443 million and $0.31 a year earlier. Income from operations rose to $795 million from $753 million, and interest expense fell 21.6% to $116 million. For the first nine months of 2021, net sales were $9,292 million (up 9.4%), net income attributable to KDP was $1,303 million, and diluted EPS was $0.91 versus $0.63. Net cash provided by operating activities was $1,933 million for the first nine months, compared with $1,666 million a year earlier. Management highlighted significant cost inflation and supply chain disruption during the quarter, which it expects to persist through the remainder of 2021 and into 2022. The company has raised prices on a number of products in response, and it notes that these increases could reduce volume or net sales and pressure margins. Adjusted diluted EPS was $0.44 in the quarter, up 12.8%, and adjusted operating margin declined 30 bps to 28.6%. Balance-sheet activity focused on deleveraging. The company made net repayments of $325 million during the quarter and issued $2,150 million of senior notes in March 2021 to refinance maturities. Total notes principal fell to $11,875 million from $13,225 million at year-end 2020, and commercial paper stood at $998 million. The Board authorized a share repurchase program of up to $4 billion, effective January 1, 2022 through December 31, 2025, and the company plans to expand its capital allocation strategy to include acquisitions beginning in 2022.

    Oct 28, 2021
  16. 2021-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2021

    Keurig Dr Pepper Inc. (KDP) reported second-quarter 2021 net sales of $3,140 million, up from $2,864 million in the second quarter of 2020, and income from operations of $734 million versus $561 million. Net income attributable to KDP was $448 million, or $0.31 per diluted share, compared with $298 million, or $0.21 per diluted share, a year earlier. For the first six months of 2021, net sales were $6,042 million and net income was $773 million, or $0.54 per diluted share. Management's adjusted diluted EPS was $0.38 for the quarter and $0.71 for the first six months, per the non-GAAP reconciliations in the filing. Balance sheet and cash flow highlights center on deleveraging. In March 2021, KDP issued $2,150 million of senior unsecured notes and used the proceeds to prepay existing notes and the 2019 KDP Term Loan, recording a $105 million loss on early extinguishment of debt for the first six months. Total Notes principal fell to $11,875 million from $13,225 million at year-end 2020, and the 2021 Merger Notes were repaid at maturity in May 2021 using commercial paper, which stood at $1,323 million at June 30, 2021. Net cash provided by operating activities was $1,139 million for the first six months of 2021, compared with $1,062 million a year earlier. Cash dividends paid were $424 million, and the quarterly dividend was raised 25% to $0.1875 per share. The filing describes a strong operating quarter, with volume/mix growth of 6.1% and Coffee Systems brewer volume up 29.0%. Beverage Concentrates and Latin America Beverages posted the strongest segment growth. The company also disclosed that the TreeHouse, JBR, McLane, direct purchaser and Club Coffee antitrust suits remain pending, with no estimate of loss given, and that the BodyArmor litigation is set for trial in February 2022.

    Jul 29, 2021
  17. 2021-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2021

    Keurig Dr Pepper Inc. (KDP) reported first-quarter 2021 net sales of $2,902 million, up $289 million, or 11.1%, from $2,613 million in the prior-year quarter. Income from operations rose $174 million, or 37.3%, to $640 million, and net income attributable to KDP increased to $325 million, or $0.23 per diluted share, versus $156 million, or $0.11, a year earlier. Management attributed the sales growth primarily to volume/mix of 10.3%, with Coffee Systems net sales up 17.4% on strong K-Cup pod and brewer volume. Adjusted diluted EPS, a non-GAAP measure, was $0.33 versus $0.29, and adjusted income from operations rose 8.3% to $741 million. Cash flow and balance sheet activity were prominent this quarter. Net cash provided by operating activities was $546 million versus $414 million. In March 2021 the company issued $2,150 million of senior unsecured notes and used the proceeds to repay several note tranches and its 2019 KDP Term Loan, recording a $105 million loss on early extinguishment of debt. Total debt carrying value (current and long-term) was $13,465 million in notes at March 31, 2021, and the company stated it was in compliance with all debt covenants. Management reiterated its deleveraging focus and noted a planned $1,750 million 2021 Merger Notes repayment in May 2021. The company also raised a $1,500 million 2021 364-Day Credit Agreement, sold approximately $140 million of stock through an at-the-market program to fund employee tax withholding on vested RSUs, and declared a $0.15 per share quarterly dividend. Management also announced an increase in the annualized dividend rate to $0.75 per share from $0.60, effective with the second-quarter 2021 dividend. Pending litigation includes antitrust matters involving KGM and the ongoing BodyArmor lawsuit, for which management stated it is unable to predict outcomes.

    Apr 29, 2021
  18. 2020-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2020

    Keurig Dr Pepper Inc. (KDP) reported third-quarter 2020 net sales of $3,020 million, up 5.2% from $2,870 million a year earlier, driven by higher volume/mix of 6.6%, partially offset by lower net price realization of 0.8% and unfavorable FX translation of 0.6%. Net income rose to $443 million from $304 million, and diluted EPS increased 47.6% to $0.31. Adjusted diluted EPS rose 21.9% to $0.39 and adjusted operating margin expanded 260 bps to 28.9%. Income from operations grew to $753 million from $580 million, though the quarter included $49 million of pre-tax COVID-19 expenses and a $16 million impairment on the LifeFuels investment. For the first nine months of 2020, net sales were $8,497 million (up 3.8%) and net income was $897 million. Net cash provided by operating activities was $1.67 billion, versus $1.80 billion in the prior-year period. The company reduced debt during the period, using a $1.5 billion senior unsecured notes issuance in April 2020 to repay its KDP Revolver, and making $880 million of term loan payments. Long-term obligations and the current portion totaled roughly $13.6 billion at September 30, 2020, and the company stated it was in compliance with all financial covenants. Liquidity was supported by $3.9 billion of committed facilities available as of October 29, 2020. Management described COVID-19 as having offsetting effects: at-home K-Cup pod and brewer demand strengthened while away-from-home and fountain foodservice sales declined. Shares moved from the NYSE to Nasdaq effective September 21, 2020, and JAB's ownership fell to 44.1%, ending the company's status as a controlled company. The 10-Q also notes an ongoing antitrust class action and related lawsuits involving KGM, with the company stating it is unable to predict their outcome.

    Oct 29, 2020
  19. 2020-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2020

    Keurig Dr Pepper Inc. (KDP) reported second-quarter 2020 net sales of $2,864 million, up $52 million, or 1.8%, from $2,812 million a year earlier, driven by higher volume/mix of 4.3% that was partly offset by lower net price realization of 1.4% and unfavorable FX translation of 1.1%. Net income declined to $298 million from $314 million, and diluted EPS was $0.21 versus $0.22. The filing attributes the pressure mainly to $75 million of additional pre-tax COVID-19 expenses and lower net price realization, partly offset by reduced marketing expense and lower interest expense from deleveraging. Adjusted diluted EPS rose 10.0% to $0.33, and Adjusted income from operations increased 10.4% to $775 million. Coffee Systems and Packaged Beverages benefited from pandemic-driven at-home demand, while Beverage Concentrates net sales fell 16.5% on weaker fountain foodservice demand. For the first six months, net sales rose 3.0% to $5,477 million and net income fell to $454 million from $544 million, including an $86 million non-cash impairment tied to the Bedford investment. Net cash provided by operating activities was $1,062 million versus $1,203 million. During the period the company issued $1.5 billion of senior unsecured notes in April 2020, used the proceeds to repay the KDP Revolver, and increased its 2020 364-Day Credit Agreement commitment from $750 million to $1.5 billion. Total long-term obligations and short-term borrowings were $13,695 million and $2,256 million respectively, after the company voluntarily prepaid $300 million of its term loan in the second quarter. Management reiterated full-year 2020 guidance for constant currency net sales growth of 3% to 4% and Adjusted diluted EPS growth of 13% to 15%, or $1.38 to $1.40 per share. The filing also discloses ongoing antitrust litigation tied to KGM's single-serve coffee business, including a $31 million settlement with indirect purchaser plaintiffs reached in July 2020 that remains subject to court approval, and a Proposition 65 acrylamide suit in which the company says it cannot reasonably estimate potential loss. Management states that the pandemic has not materially affected its liquidity position.

    Jul 30, 2020
  20. 2020-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2020

    Keurig Dr Pepper Inc. (KDP) reported net sales of $2,613 million for the first quarter of 2020, up $109 million, or 4.4%, from $2,504 million a year earlier. Net income fell $74 million to $156 million, or $0.11 per diluted share, driven primarily by a non-cash $86 million impairment tied to its Bedford investment. Income from operations declined 6.4% to $466 million, though management reported Adjusted net income up 12.7% to $408 million and Adjusted diluted EPS up 16.0% to $0.29. Operating cash flow was $414 million versus $591 million a year earlier. The company stated that COVID-19 had not had a material net impact on consolidated results for the quarter. Demand surged in the at-home business and Packaged Beverages, while away-from-home coffee, fountain foodservice and Beverage Concentrates slowed late in the quarter. Management reaffirmed 2020 guidance of constant currency net sales growth of 3% to 4%, likely at the low end, and Adjusted diluted EPS growth of 13% to 15%, or $1.38 to $1.40 per share. On the balance sheet, total debt was $12,529 million at March 31, 2020 versus $13,174 million at year-end 2019. Subsequent to quarter end, KDP issued $1,500 million of senior unsecured notes and upsized its 364-day credit agreement from $750 million to $1,500 million, which management said increased excess liquidity. Committed financing availability was $3,900 million as of April 30, 2020.

    Apr 30, 2020
  21. 2019-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2019

    Keurig Dr Pepper Inc. (KDP) reported its third-quarter 2019 results in this Form 10-Q for the period ended September 30, 2019. Net sales for the quarter were $2.87 billion, up from $2.73 billion in the third quarter of 2018, and income from operations rose to $580 million from $345 million. Net income attributable to KDP was $304 million, or $0.21 per diluted share, versus $149 million, or $0.11, a year earlier. The company attributes the improvement largely to the comparison against the $131 million inventory step-up and transaction costs recorded in the prior-year quarter related to the Dr Pepper Snapple Group merger, which was completed on July 9, 2018. For the first nine months of 2019, net sales were $8.19 billion and net income attributable to KDP was $848 million. On a non-GAAP basis, the filing reports Adjusted net income of $451 million ($0.32 Adjusted diluted EPS) for the third quarter of 2019, compared with Adjusted pro forma net income of $417 million ($0.30) in the prior-year period. Management attributes this growth to productivity and merger synergies and lower interest expense from reduced indebtedness. Net cash provided by operating activities was $1.80 billion for the first nine months of 2019, and total debt-related repayments continued, with senior unsecured notes carrying value of $11.79 billion and term loans of $1.70 billion at September 30, 2019. Total long-term obligations plus short-term borrowings were roughly $15.2 billion as reported in the balance sheet components. The filing also discloses an ongoing Proposition 65 lawsuit concerning acrylamide in coffee, for which the company says it is unable to reasonably estimate potential loss, and a McCafé licensing and distribution agreement with McDonald's USA announced September 26, 2019, beginning in the second half of 2020. Quarterly dividends of $0.15 per share were declared.

    Nov 7, 2019
  22. 2019-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2019

    Keurig Dr Pepper Inc. reported second-quarter 2019 net sales of $2.81 billion and net income attributable to KDP of $314 million, or $0.22 per diluted share, compared with $949 million of net sales and $83 million of net income in the second quarter of 2018. The filing attributes the year-over-year increase primarily to the DPS Merger, completed July 9, 2018, and presents adjusted pro forma comparisons for the prior-year quarter. On that basis, adjusted net sales were $2,812 million, down 0.4% from $2,822 million, with underlying net sales growth of 2.6%. Adjusted net income rose 18.8% to $423 million, adjusted diluted EPS rose 15.4% to $0.30, and adjusted income from operations grew 9.7% to $702 million. Management attributes the growth primarily to productivity and merger synergies, partly offset by input cost inflation in packaging and logistics. For the first six months of 2019, net cash provided by operating activities was $1,203 million, compared with $578 million in the first six months of 2018. The company made net repayments of approximately $717 million across its 2019 Notes, term loans and commercial paper. At June 30, 2019, short-term borrowings and the current portion of long-term obligations totaled $1,806 million, and the long-term obligations subtotal was $13,509 million. The company paid $423 million in cash dividends during the period and declared a quarterly dividend of $0.15 per share. Its credit ratings were Baa2 with a negative outlook from Moody's and BBB with a stable outlook from S&P, and management said it intends to drive significant cash flow generation to enable rapid deleveraging within two to three years from the DPS Merger. The filing highlights several open items. A long-running Proposition 65 lawsuit over acrylamide in coffee continues; a California regulation clarifying that cancer warnings are not required for acrylamide was adopted June 3, 2019 and takes effect October 1, 2019, but the plaintiff contends it is invalid, and the company cannot reasonably estimate potential loss. The company's integration program targets $600 million of synergies over three years with total expected cash expenditures of $750 million. A subsidiary has also sued BA Sports Nutrition over its attempted early termination of a distribution contract.

    Aug 8, 2019
  23. 2019-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2019

    Keurig Dr Pepper Inc. (then Dr Pepper Snapple Group, Inc., which changed its name on July 9, 2018 following the DPS Merger) reported first-quarter 2019 net sales of $2.50 billion, up from $948 million in the first quarter of 2018. The increase was driven primarily by the DPS Merger, which contributed $1.54 billion of acquired sales. Net income attributable to KDP was $230 million, or $0.16 per diluted share, compared with $88 million, or $0.11 per diluted share, a year earlier. Income from operations rose to $498 million from $178 million, and the operating margin was 19.9%. On a non-GAAP basis, the company reported Adjusted net sales of $2,504 million, down 1.1% from Adjusted pro forma net sales of $2,533 million. Adjusted income from operations increased 10.5% to $621 million, and Adjusted diluted EPS rose to $0.25 from $0.19. Management attributed the improvement to productivity and merger synergies, partly offset by input cost and logistics inflation, along with lower interest expense from swap terminations and debt reduction. The balance sheet shows total assets of $49.29 billion and long-term obligations of $13.25 billion at March 31, 2019. During the quarter the company refinanced its term loan with a new $2 billion facility, made net debt repayments of approximately $414 million, and paid $211 million in dividends. Operating cash flow was $591 million, compared with $267 million in the prior-year quarter. The filing also discloses an unresolved Proposition 65 acrylamide lawsuit, in which the company says it cannot reasonably estimate potential loss, and a new lawsuit filed by a subsidiary against BA Sports Nutrition.

    May 9, 2019
  24. 2018-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2018

    Keurig Dr Pepper Inc. (KDP) reported third-quarter 2018 results that reflect the July 9, 2018 consummation of its merger with Dr Pepper Snapple Group, Inc. (DPS). For accounting purposes, Maple Parent Holdings Corp. was the acquirer and the transaction was accounted for as a reverse merger. Net sales for the third quarter were $2,732 million, up from $1,140 million a year earlier, and net income attributable to KDP was $148 million, or $0.11 per diluted share, compared with $116 million, or $0.14 per diluted share. The filing attributes the sales increase primarily to $1,679 million of sales acquired since the merger. Adjusted pro forma net income, a non-GAAP measure, was $414 million, or $0.30 per diluted share, compared with $297 million, or $0.21 per diluted share, an increase of 39%. Adjusted pro forma net sales grew 2.9% to $2,856 million. The balance sheet changed substantially with the merger. Total assets rose to $49,058 million from $15,744 million at December 31, 2017, driven by $19,291 million of goodwill and $24,436 million of other intangible assets. Total liabilities were $26,765 million, including $14,275 million of long-term obligations, and stockholders' equity was $22,293 million. Interest expense rose to $172 million in the third quarter from $28 million, reflecting the merger financing. KDP repaid $548 million of its term loan, commercial paper and revolver after the merger, and its Board authorized a quarterly dividend, with a first payment of $0.15 per share. The filing also discloses pending and recent activity. KDP completed the Big Red acquisition on August 31, 2018 for a cash purchase price of $300 million and agreed to acquire Core Nutrition, LLC for an enterprise value of $525 million, expected to close by the end of 2018. KDP is a defendant in a California Proposition 65 lawsuit concerning acrylamide in coffee, and it states it is unable to reasonably estimate the potential loss at this stage. The company also reports a $133 million inventory step-up charge in cost of sales for the third quarter and $96 million of third-quarter transaction expenses.

    Nov 8, 2018
  25. 2018-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2018

    Dr Pepper Snapple Group, Inc. reported second-quarter 2018 net sales of $1,886 million, up approximately 5% from $1,797 million in the prior-year quarter. Income from operations declined $13 million, or 3%, to $362 million, as higher cost of sales and SG&A expenses outweighed the sales increase. Gross margin fell to 58.1% from 60.0%, driven mainly by higher commodity costs, led by packaging. Net income rose to $235 million from $188 million, and diluted EPS was $1.30 versus $1.02. The prior-year quarter included a $49 million loss on early extinguishment of debt, and the effective tax rate fell to 25.9% from 33.2%, primarily due to the Tax Cuts and Jobs Act. For the six months ended June 30, 2018, net sales were $3,480 million and net income was $394 million, with diluted EPS of $2.17 compared with $1.98. Net cash provided by operating activities was $418 million, while dividends paid were $209 million and capital expenditures were $79 million. Total assets were $10,246 million and total liabilities were $7,524 million at June 30, 2018. Share repurchases remained suspended under the merger agreement. The most significant event disclosed is the Maple Merger, completed on July 9, 2018, which created Keurig Dr Pepper Inc. (now the company's name) as a reverse merger with Maple Parent as the accounting acquirer. Former Maple equityholders are expected to own approximately 87% of the common stock, and DPS shareholders approximately 13% on a fully diluted basis. The transaction included a special cash dividend of $103.75 per share, funded by a $9 billion equity contribution from JAB Holding Company, $8 billion of Maple Notes, and borrowings under new Maple credit agreements. Moody's and S&P downgraded the company's long-term ratings in May 2018 to Baa2 (negative outlook) and BBB (stable), respectively, but both remain investment grade.

    Aug 8, 2018
  26. 2017-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Dec 31, 2017

    This Transition Report on Form 10-Q (Form 10-QT) covers the transition period from October 1, 2017 to December 31, 2017 for Keurig Dr Pepper Inc., which at filing was named Dr Pepper Snapple Group, Inc. (DPSG) and was renamed Keurig Dr Pepper Inc. upon closing of the DPSG Merger on July 9, 2018. Because the merger was accounted for as a reverse acquisition with Maple Parent Holdings Corp. as the accounting acquirer, the financial statements present Maple's standalone results (Keurig business) for the three months ended December 31, 2017 versus December 24, 2016. For that quarter, net sales were $1,170 million, down from $1,214 million, with the decline attributed to unfavorable rate (5%) and unfavorable product mix (3%), partly offset by a 4% increase in sales volume. Gross profit was $514 million, and operating income was $230 million, compared with $264 million in the prior-year period. Net income attributable to the company was $613 million, versus $143 million, driven mainly by a $484 million income tax benefit from the Tax Cuts and Jobs Act, which the company recorded on a provisional basis under SAB 118. Non-GAAP net income declined 15.3% to $156 million from $182 million. Cash and cash equivalents fell to $95 million from $349 million at September 30, 2017, as the company repaid $605 million of its Revolving Facility and Term Loan A. Long-term third-party debt stood at $3,329 million, with $1,815 million of related-party debt outstanding. Post-period events are significant: the DPSG Merger closed July 9, 2018, funded by $8.0 billion of senior notes issued May 25, 2018, new KDP credit agreements ($2.7 billion term loan and $2.4 billion revolver), and a special dividend of $103.75 per share. KDP also agreed to acquire the remaining interest in Big Red Group Holdings for an estimated $300 million. Several legal matters remain pending, including a securities class action nearing settlement and the Proposition 65 acrylamide litigation, where the trial court issued an adverse final Phase 2 ruling on May 7, 2018.

    Aug 7, 2018
  27. 2018-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2018

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported first-quarter 2018 net sales of $1.594 billion, up from $1.510 billion, which the filing attributes primarily to 2.5% growth in sales volumes, with net sales growing approximately 6%. Income from operations declined to $259 million from $286 million, driven mainly by the prior-year gain on the step-acquisition of Bai Brands and by higher cost of sales and SG&A expenses, including higher commodity costs and $14 million of logistic costs. Net income was $159 million, compared with $177 million, and diluted earnings per share were $0.88, compared with $0.96. Gross margin fell to 57.3% from 59.8%, and the effective tax rate was 24.7% versus 28.6%, reflecting the Tax Cuts and Jobs Act. The dominant event in the filing is the pending Maple Transaction. Under the January 29, 2018 Merger Agreement, Maple Parent Holdings Corp. (parent of Keurig Green Mountain, Inc.) will be the accounting acquirer, and Maple's equityholders will own approximately 87% of common stock after closing. DPS will pay a special cash dividend of $103.75 per share, and the Merger Agreement carries a $700 million termination fee payable by DPS in specified circumstances. Commercial paper is limited to $200 million unless Maple approves, the share repurchase program is suspended, and Moody's has placed DPS ratings under review for downgrade while S&P has placed them on Creditwatch Negative. Six lawsuits by purported stockholders allege misstatements in the preliminary proxy statement, which the company intends to contest. Balance sheet and cash flow figures were steady. Cash, cash equivalents, restricted cash and restricted cash equivalents totaled $121 million at March 31, 2018, down $37 million from year-end. Operating cash flow was $103 million, versus $97 million a year earlier, and dividends paid were $104 million. Total assets were $10.179 billion and total stockholders' equity was $2.486 billion. The company declared a quarterly dividend of $0.58 per share.

    Apr 25, 2018
  28. 2017-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2017

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported third-quarter 2017 net sales of $1,740 million, up $60 million, or approximately 4%, from $1,680 million a year earlier. Income from operations fell $6 million to $367 million, and net income declined $37 million to $203 million, driven primarily by the Bai Brands Merger, a $13 million loss on early extinguishment of debt tied to redemption of the 2018 Notes, and a $6 million supplier default in Mexico. Diluted EPS was $1.11 versus $1.29 in the prior-year quarter. For the nine months, net sales rose to $5,047 million and net income was $568 million, compared with $682 million a year earlier. The company completed the Bai Brands Merger on January 31, 2017, paying $1,553 million in cash at closing and recording preliminary purchase price of $1,639 million, including $88 million held back in escrow. Goodwill rose to $3,559 million and other intangible assets to $3,786 million, from $2,993 million and $2,656 million at year-end 2016. Cash and cash equivalents fell to $66 million from $1,787 million, while total debt-related balances were refinanced through $400 million of new senior unsecured notes and $70 million of commercial paper. The company repurchased 3.5 million shares for approximately $320 million year to date and paid $309 million in dividends. Management states that operating cash flow of $732 million for the nine months will be sufficient to meet obligations for the next twelve months. Total stockholders' equity was $2,129 million at September 30, 2017, and the company was in compliance with all financial covenants under its Credit Agreement. The filing also notes that recent hurricanes and earthquakes caused disruptions without material loss of distribution or production.

    Oct 25, 2017
  29. 2017-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2017

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported second-quarter 2017 net sales of $1,797 million, up from $1,695 million a year earlier, and net income of $188 million versus $260 million. The decline in net income was driven by a $49 million loss on early extinguishment of debt from a June 2017 tender offer, the impact of the Bai Brands Merger, and an unfavorable comparison to a $21 million gain on a multi-employer pension plan withdrawal liability recorded in the prior year. Diluted earnings per share were $1.02 for the quarter, compared with $1.39 in the prior-year period. Income from operations was $373 million versus $412 million. The company completed the Bai Brands Merger on January 31, 2017 for a purchase price of $1.69 billion, funded with senior unsecured notes issued in December 2016 and cash on hand. The filing shows that cash, cash equivalents, restricted cash and restricted cash equivalents fell to $387 million at June 30, 2017 from $1,787 million at December 31, 2016, and that intangible assets and goodwill rose substantially. Net cash provided by operating activities was $410 million for the six months, and the company repurchased $177 million of common stock and paid $204 million in dividends during the period. Dividends declared were $0.58 per share in the quarter. The company's debt activity included issuing $400 million of 2027 and 2045 senior unsecured notes in June 2017 and a tender offer retiring approximately $125 million of 2038 Notes and $63 million of 2018 Notes. In July 2017 the company redeemed the remaining 2018 Notes, retiring approximately $301 million at a premium, with a loss of approximately $13 million to be recorded in the third quarter. Management stated that operating cash flows should be sufficient to meet obligations for the next twelve months.

    Jul 27, 2017
  30. 2017-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2017

    Dr Pepper Snapple Group, Inc. reported first-quarter 2017 net sales of $1,510 million, up from $1,487 million a year earlier, and net income of $177 million compared with $182 million in the prior-year quarter. Diluted earnings per share were $0.96 in both periods. Income from operations fell to $285 million from $313 million, reflecting higher selling, general and administrative expenses of $621 million (up from $546 million), which include $19 million of Bai Brands acquisition and integration expenses, and a $28 million gain on the step-acquisition of Bai Brands recorded in other operating income. The effective tax rate dropped to 28.6% from 35.2%, aided by an $18 million tax benefit from the adoption of ASU 2016-09. The most significant event in the quarter was the January 31, 2017 completion of the Bai Brands merger for a purchase price of $1.69 billion, funded with proceeds from senior unsecured notes issued in December 2016 and cash on hand. Goodwill rose to $3,560 million and other intangible assets, net, rose to $3,784 million, and cash, cash equivalents and restricted cash fell from $1,787 million at year-end 2016 to $176 million. Operating cash flow was $97 million, down from $197 million, primarily due to unfavorable working capital comparisons. Dividends declared were $0.58 per share, up from $0.53, and the company repurchased 0.3 million shares for approximately $28 million. By segment, Beverage Concentrates net sales rose to $294 million and Packaged Beverages rose to $1,118 million, while Packaged Beverages segment operating profit declined to $141 million from $175 million. Management stated it expects the Bai Brands integration and its operating cash flows to fund its obligations over the next twelve months.

    Apr 26, 2017
  31. 2016-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2016

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported net sales of $1,680 million for the third quarter of 2016, up $50 million, or approximately 3%, from $1,630 million a year earlier, and net income of $240 million, or $1.29 diluted earnings per share, versus $202 million and $1.05 a year earlier. For the nine months ended September 30, 2016, net sales were $4,862 million and net income was $682 million, or $3.64 diluted EPS. Results were helped by a $17 million income tax benefit from a restructuring of the ownership of its Canadian business, which added $0.09 to diluted EPS, and a non-taxable $5 million gain on the step-acquisition of IEBM and EMA, which added $0.03. Cash and cash equivalents declined to $620 million from $911 million at year-end 2015, reflecting the $500 million repayment of 2016 Notes, $460 million of share repurchases and $288 million of dividend payments for the nine months, partly offset by net cash from operations of $683 million and $400 million of new 2.55% senior notes due 2026. Subsequent to quarter-end, on October 11, 2016, the company redeemed approximately $360 million of its 6.82% 2018 Notes at a premium, with a loss on extinguishment of approximately $31 million to be recorded in the fourth quarter. Management stated its operating cash flows are expected to be sufficient to meet anticipated obligations for the next twelve months. Volume (BCS) increased 2% in the third quarter, with branded CSD volume up 2% and NCB volume flat, while nine-month volume (BCS) rose 1%. Gross margin improved to 59.3% from 58.7% in the quarter, and the company remained in compliance with its financial covenants.

    Oct 27, 2016
  32. 2016-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2016

    Dr Pepper Snapple Group, Inc. reported net sales of $1,695 million for the three months ended June 30, 2016, up from $1,655 million a year earlier, and $3,182 million for the six months, up from $3,106 million. Income from operations rose to $412 million for the quarter from $369 million, and net income rose to $260 million from $220 million. Diluted EPS was $1.39 for the quarter versus $1.14, and $2.35 for the six months versus $1.95. Results included a $21 million gain on the extinguishment of a multi-employer pension plan withdrawal liability, which added $0.06 to diluted EPS for the quarter. Balance sheet and cash flow reflect the repayment of $500 million of senior unsecured notes due 2016 in January. Cash and cash equivalents fell to $245 million at June 30, 2016 from $911 million at December 31, 2015. Net cash provided by operating activities was $407 million for the six months, versus $349 million a year earlier. The company repurchased $303 million of common stock and paid $190 million in dividends during the six months, and $1,348 million remained available under its repurchase authorization at quarter end. Management now expects net sales for 2016 to increase approximately 2% compared with 2015, and commodity costs are expected to decrease cost of sales by approximately 1% on a constant volume/mix basis. Gross margin improved to 60.5% for the quarter from 59.3%, helped by favorable mark-to-market activity on commodity derivatives, lower commodity costs and productivity gains, partly offset by unfavorable mix.

    Jul 27, 2016
  33. 2016-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2016

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported first-quarter 2016 net sales of $1,487 million, up $36 million from $1,451 million in the prior-year quarter. Income from operations rose to $313 million from $270 million, and net income increased to $182 million from $157 million. Diluted earnings per share were $0.96, compared with $0.81 a year earlier. Management attributed the sales increase mainly to favorable product and package mix (a 3% contribution), higher pricing (1%) and higher shipments (1%), partly offset by unfavorable foreign currency translation of $21 million. Gross margin improved to 59.5% from 58.5%, driven primarily by lower commodity costs, led by packaging. Cash position and capital returns were the main balance sheet focus. Cash and cash equivalents fell to $275 million from $911 million at year-end 2015, mainly because the company repaid $500 million of 2.90% senior notes at maturity on January 15, 2016. The company also repurchased 2.0 million shares for approximately $179 million and paid $90 million in dividends, with dividends declared at $0.53 per share. In February 2016 the Board authorized an additional $1 billion of repurchases, and the company expects to repurchase $650 million to $700 million of stock during 2016. Total stockholders' equity was $2,102 million at March 31, 2016, and total debt-related long-term obligations were $2,907 million. The filing also discloses a pending exit from the Mexican joint venture with Acqua Minerale San Benedetto S.P.A. after a deadlock was confirmed in arbitration, with an award of approximately $4 million to San Benedetto recorded in SG&A. The company also agreed to settle its multi-employer pension plan withdrawal liability for a $35 million lump sum, to be paid in May 2016, which is expected to produce a $21 million gain upon payment in the second quarter.

    Apr 27, 2016
  34. 2015-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2015

    Dr Pepper Snapple Group, Inc. reported net sales of $1,630 million for the three months ended September 30, 2015, an increase of $47 million, or 3%, from $1,583 million a year earlier, and net income of $202 million versus $188 million, an increase of $14 million, or 7%. Diluted earnings per share were $1.05 compared with $0.96, an increase of $0.09, or 9%. For the nine months, net sales were $4,736 million, up $124 million or 3%, and net income was $579 million compared with $553 million. Management attributed the quarterly sales growth to a 3% increase in concentrate case sales, favorable product and package mix and higher pricing, partially offset by $39 million of unfavorable foreign currency translation and higher discounts, primarily from the fountain business. Cash flow and capital returns were a central theme. Net cash provided by operating activities was $723 million for the nine months, down from $769 million, mainly due to working capital changes. The company repurchased 5.2 million shares for approximately $404 million in the nine months and paid $264 million in dividends, while declaring $1.44 per share in dividends. As of September 30, 2015, $768 million remained available under the Board's repurchase authorization. Cash and cash equivalents were $207 million, and total debt-related obligations on the balance sheet were $2,635 million including capital leases. Balance sheet items to note include $500 million of senior notes due January 15, 2016 (the 2016 Notes), which the company stated it intends to refinance with senior notes before maturity. The Revolver of $500 million was undrawn as of September 30, 2015, and the company reported compliance with its financial covenants. Credit ratings were Baa1 from Moody's and BBB+ from S&P, both with stable outlooks.

    Oct 22, 2015
  35. 2015-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2015

    Dr Pepper Snapple Group, Inc. reported net sales of $1,655 million for the three months ended June 30, 2015, an increase of $24 million, or 1%, from the prior-year quarter, and net income of $220 million, up $10 million, or 5%. Diluted earnings per share were $1.14 versus $1.06, an increase of $0.08, or 8%. For the six months, net sales were $3,106 million and net income was $377 million, compared with $365 million a year earlier. Management attributed the quarterly sales increase to favorable product and package mix, branded volume gains and favorable segment mix, partially offset by $29 million of unfavorable foreign currency translation. Gross margin was 59.3% in the quarter versus 59.2% a year earlier. Cash flow and capital returns were a notable part of the period. Net cash provided by operating activities was $349 million for the six months, down from $438 million, primarily due to working capital changes. The company repurchased 3.2 million shares for approximately $251 million in the six months and paid $172 million in dividends. Cash and cash equivalents fell to $127 million from $237 million at year-end 2014. Total debt and long-term obligations were $2,602 million, including $500 million of 2.90% senior notes due January 15, 2016 that the company intends to refinance by issuing new senior notes before maturity. The filing reports that management believes operating cash flows will be sufficient to meet obligations for the next twelve months, and that $921 million remained available under the Board's share repurchase authorization as of June 30, 2015. Credit ratings were Baa1 from Moody's and BBB+ from S&P, both with stable outlooks.

    Jul 23, 2015
  36. 2015-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2015

    Dr Pepper Snapple Group, Inc. reported net sales of $1,451 million for the three months ended March 31, 2015, up $53 million, or 4%, from $1,398 million a year earlier. Net income rose to $157 million from $155 million, and diluted earnings per share were $0.81 versus $0.78, an increase of $0.03, or 4%. Gross margin declined to 58.5% from 60.4%, driven mainly by unfavorable product and segment mix and an unfavorable comparison in commodity derivative mark-to-market activity, while income from operations increased $10 million to $270 million. Cash position and capital returns were the main focus of the quarter. Cash and cash equivalents fell to $93 million from $237 million at December 31, 2014, reflecting $135 million of share repurchases, $79 million of dividends paid, and $20 million of capital expenditures, partly offset by $101 million of operating cash flow. The Board declared a $0.48 per share dividend, a 17.1% increase over the prior declared dividend, and in February 2015 authorized an additional $1 billion of share repurchases, leaving $1,037 million available. Total debt-related obligations were $2,617 million, including a $500 million senior note due January 2016 that the company stated it intends to refinance before maturity. The company reported that it was in compliance with its financial covenants and that its credit ratings were Baa1 from Moody's and BBB+ from S&P, both with stable outlooks. Management believes operating cash flows will be sufficient to meet anticipated obligations for the next twelve months.

    Apr 23, 2015
  37. 2014-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2014

    Dr Pepper Snapple Group, Inc. reported net sales of $1,583 million for the three months ended September 30, 2014, up $40 million, or 3%, from $1,543 million a year earlier. Net income was $188 million, down $19 million, or 9%, from $207 million, and diluted EPS was $0.96 versus $1.01. The prior-year quarter included a $33 million non-cash increase in net income from the conclusion of an IRS audit and $430 million of other expense tied to Mondelēz indemnification. For the nine months, net sales rose to $4,612 million from $4,534 million, and net income rose to $553 million from $468 million, with diluted EPS of $2.79 versus $2.28. Income from operations increased $142 million to $924 million, driven mainly by higher gross profit and lower SG&A. Cash flow and capital returns were strong. Net cash provided by operating activities was $769 million for the nine months, versus $616 million a year earlier. The company paid $237 million in dividends and repurchased $276 million of common stock, and cash and equivalents rose to $266 million. Total debt was largely unchanged, with long-term obligations of $2,539 million and senior unsecured notes of $2,482 million. Commercial paper outstanding was zero at quarter end, compared with $65 million at December 31, 2013. Management stated that operating cash flows should be sufficient to meet anticipated obligations for the next twelve months. Volume (BCS) rose 1% in the quarter, with the U.S. and Canada flat and Mexico and the Caribbean up 10%. Gross margin improved to 58.4% from 57.9%, mainly on lower commodity costs. The company's debt ratings were Baa1 (Moody's) and BBB+ (S&P), both with stable outlooks. The remaining $296 million of the $3 billion share repurchase authorization was available at quarter end.

    Oct 23, 2014
  38. 2014-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2014

    Dr Pepper Snapple Group, Inc. reported net sales of $1,631 million for the three months ended June 30, 2014, up $20 million, or 1%, from $1,611 million a year earlier. Net income rose to $210 million from $155 million, an increase of 35%, and diluted earnings per share were $1.06 versus $0.76. Income from operations increased $63 million to $348 million, driven mainly by higher gross profit and lower SG&A expenses. For the six months, net sales were $3,029 million and net income was $365 million, compared with $261 million a year earlier. Gross margin improved to 59.2% for the quarter from 58.0%, which management attributed primarily to lower commodity costs, led by sweeteners and apples, and to the LIFO inventory provision. SG&A fell $27 million, or approximately 4%, largely due to an $18 million reduction in marketing investments. Net cash provided by operating activities rose to $438 million for the six months from $295 million, and the company repurchased 3.9 million shares for about $206 million in that period. The Board declared a quarterly dividend of $0.41 per share. The filing also notes that the prior-year tax provision and other income were affected by a Canadian tax law change in June 2013, which created a $50 million non-cash reduction in tax assets and a $38 million indemnity income effect. Total debt, including the current portion, stood at $2,539 million, and cash and cash equivalents were $135 million at June 30, 2014. Debt ratings were Baa1 from Moody's and BBB+ from S&P, both with stable outlooks.

    Jul 24, 2014
  39. 2014-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2014

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported first-quarter 2014 net sales of $1.398 billion, up $18 million, or 1%, from $1.380 billion a year earlier. Net income rose to $155 million from $106 million, an increase of 46%, and diluted earnings per share were $0.78 versus $0.51. Gross margin expanded to 60.4% from 57.2%, driven mainly by lower commodity costs for sweeteners and apples, favorable commodity derivative mark-to-market activity, and productivity improvements. Income from operations rose to $260 million from $197 million, and interest expense fell to $26 million from $34 million. Volume (BCS) declined 1% for the quarter, with U.S. and Canada volume down 2% and Mexico and the Caribbean up 3%. Dr Pepper volume fell 4%, Squirt declined 8% due to the Mexican sugar tax, and Hawaiian Punch fell 8%, while Peñafiel grew 18% and Schweppes grew 11%. Segment operating profit (SOP) rose across all three segments, with Beverage Concentrates SOP up $20 million to $174 million and Packaged Beverages SOP up $17 million to $131 million. Cash flow from operations was $129 million, up from $77 million. The company paid $90 million for shares not yet received under a prepaid forward repurchase, repurchased $60 million of common stock, paid $75 million in dividends, and declared $0.41 per share, up from $0.38. Cash fell to $120 million, and short-term commercial paper borrowings rose to $150 million. Remaining share repurchase authorization was $512 million.

    Apr 23, 2014
  40. 2013-Q2-A

    Keurig Dr Pepper Quarterly Report (Amendment) for Q2 Ended Jun 30, 2013

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) filed Amendment No. 1 on Form 10-Q/A to its Quarterly Report for the period ended June 30, 2013, which the Company originally filed on July 24, 2013. The sole purpose of the amendment is to file a revised, redacted version of Exhibit 10.1 to reflect comments from the SEC Staff on the Company's confidential treatment request. The amendment states that it contains only the cover page, the explanatory note, the signature page, the Index to Exhibits and Exhibit 10.1, and that no other changes have been made to the original Form 10-Q. The filing identifies Exhibit 10.1 as an agreement dated July 22, 2013 among The American Bottling Company, Mott's LLP and CROWN Cork & Seal USA, Inc., with portions omitted and filed separately under the confidential treatment application. The amendment also states that the Section 302 and Section 906 certifications from the original report were re-executed and re-filed as exhibits to this amendment. As of February 25, 2014, there were 197,397,549 shares of common stock outstanding, par value $0.01 per share. The filing's index also lists the Company's debt instruments, including senior notes issued in 2009, 2011 and 2012, and references the XBRL financial information (condensed consolidated statements of income, comprehensive income, balance sheets and cash flows, and notes) as an exhibit to the original quarterly report. Investors seeking the quarter's financial results should refer to that original Form 10-Q.

    Mar 3, 2014
  41. 2013-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2013

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported net sales of $1,543 million for the three months ended September 30, 2013, up $15 million, or 1%, from $1,528 million a year earlier. Net income rose to $207 million from $179 million, and diluted EPS was $1.01 versus $0.84. Results were heavily affected by a non-cash $463 million income tax benefit tied to the conclusion of an IRS audit of the 2006-2008 federal returns, offset by $430 million of other expense, net, as the company no longer expects to collect amounts from Mondelēz. Excluding these items, the filing shows income before taxes of $273 million for the quarter. Income from operations fell $8 million to $300 million, driven by lower gross profit and higher SG&A expenses, while volume (BCS) was flat. For the nine months, net sales were $4,534 million compared with $4,511 million, and net income was $468 million versus $459 million. Operating cash flow rose to $616 million from $282 million, largely because 2012 included $531 million of tax payments tied to licensing agreements with PepsiCo and Coca-Cola. Cash and equivalents fell to $119 million at September 30, 2013, from $366 million at December 31, 2012, after the company repaid $250 million of 2013 Notes at maturity. Share repurchases totaled $243 million for the nine months, with $730 million remaining under the board authorization. Management stated that operating cash flows would be sufficient to meet obligations for the next twelve months. The filing also notes a $12 million litigation reserve after settlements with five of six plaintiffs in the ABC litigation, a restated 2012 cash flow presentation for property purchases, and debt ratings of Baa1 (Moody's) and BBB (S&P).

    Oct 24, 2013
  42. 2013-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2013

    Dr Pepper Snapple Group, Inc. reported net sales of $1,611 million for the three months ended June 30, 2013, a decrease of $10 million, or 1%, from the prior-year quarter. Net income was $155 million, compared with $178 million a year earlier, a decrease of $23 million, or 13%. Diluted earnings per share were $0.76 versus $0.83, a decrease of $0.07, or approximately 8%. The filing states that a Canadian tax law change reduced net income by $12 million and diluted EPS by $0.06 in the quarter. Income from operations fell $15 million to $285 million, driven mainly by higher SG&A expenses, partly offset by lower depreciation and amortization and a $11 million favorable LIFO comparison in gross profit. For the six months ended June 30, 2013, net sales were $2,991 million (essentially flat versus $2,983 million) and net income was $261 million versus $280 million. Volume (BCS) declined 3% for both the quarter and the half, with Dr Pepper volume down 4% in the U.S. and Canada on continued category headwinds. Cash and cash equivalents fell to $113 million from $366 million at year-end 2012, mainly due to the $250 million repayment of 6.12% senior notes at maturity and $126 million of share repurchases, partly offset by $68 million of net commercial paper issuances. Total debt-related balances included $2,465 million of senior unsecured notes at June 30, 2013. The company reported total assets of $8,709 million and stockholders' equity of $2,304 million at June 30, 2013. It stated it was in compliance with all financial covenants, and it had $846 million remaining under its share repurchase authorization. The filing also notes that Mondelēz indemnifies the company for net unrecognized tax benefits of $443 million under the Tax Indemnity Agreement, and that a $459 million reduction in gross unrecognized tax benefits is reasonably possible within 12 months.

    Jul 24, 2013
  43. 2013-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2013

    Dr Pepper Snapple Group, Inc. reported net sales of $1,380 million for the three months ended March 31, 2013, up $18 million, or 1%, from $1,362 million a year earlier. Net income rose to $106 million from $102 million, an increase of $4 million, or 4%. Diluted EPS was $0.51 versus $0.48, and income from operations increased $5 million to $197 million. Management attributed the sales increase to price increases, favorable mix and lower discounts, partially offset by lower volumes. Volume (BCS) decreased 2%, with CSD volume down 2% and NCB volume down 4%. Operating cash flow was $60 million, compared with a use of $325 million in the prior-year quarter, which the filing attributes primarily to 2012 tax payments of $508 million tied to licensing agreements with PepsiCo and Coca-Cola. Cash and cash equivalents fell to $208 million from $366 million at year-end 2012. The company repurchased 2.3 million shares for about $101 million, paid $70 million in dividends, and declared a quarterly dividend of $0.38 per share, up from $0.34. Total long-term obligations were $2,797 million including current portion, and the company stated it was in compliance with its financial covenants. The filing notes that the company acquired certain assets of Dr. Pepper/7-Up Bottling Company of the West for $23 million on February 25, 2013, and reacquired Snapple and other NCB distribution rights in parts of Asia-Pacific from Mondelēz. The company intends to issue commercial paper in the second quarter of 2013 to refinance its $250 million 6.12% senior notes due May 1, 2013. Management also flagged a pending Canadian tax bill that, if enacted, would reduce deferred tax assets and reduce net income.

    Apr 24, 2013
  44. 2012-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2012

    Dr Pepper Snapple Group, Inc. reported net sales of $1,528 million for the three months ended September 30, 2012, essentially flat versus $1,529 million a year earlier, while net income rose to $179 million from $154 million and diluted earnings per share increased to $0.84 from $0.71. For the nine months, net sales were $4,511 million versus $4,442 million, and net income was $459 million versus $440 million. Income from operations grew to $800 million for the nine months from $753 million, and gross margin improved to 58.0% from 57.7%. Volume (BCS) declined 1% for the nine months, with Packaged Beverages volume down 2%, while Dr Pepper TEN contributed growth in Beverage Concentrates. Cash flow was pressured by a $531 million income tax payment tied to the PepsiCo and Coca-Cola licensing agreements. Net cash provided by operating activities fell to $264 million from $580 million, and cash and cash equivalents declined to $383 million from $701 million at year-end 2011. The company repurchased 6.3 million shares for approximately $262 million in the nine months and paid $213 million in dividends. Total debt-related items include senior unsecured notes carried at $2,710 million, with a $450 million 2.35% note due December 21, 2012 that management intends to refinance during the fourth quarter of 2012. The company entered a new five-year, $500 million unsecured revolving credit agreement on September 25, 2012, replacing the prior facility, which was terminated that day. Debt ratings were Baa1 (Moody's) and BBB (S&P), both with stable outlooks. The filing also notes a $1,110 million remaining share repurchase authorization and a $436 million indemnity from Mondelēz under the Tax Indemnity Agreement, following Kraft Foods' October 1, 2012 spin-off of its North American grocery business.

    Oct 24, 2012
  45. 2012-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2012

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported net sales of $1,621 million for the three months ended June 30, 2012, up $39 million, or approximately 2%, from $1,582 million a year earlier. Net income was $178 million, or $0.83 per diluted share, compared with $172 million and $0.77 in the prior-year quarter. For the six months, net sales were $2,983 million and net income was $280 million, down from $286 million, with diluted EPS of $1.31 versus $1.27. Income from operations was flat at $492 million for the six months, as the benefit of higher sales was offset by higher commodity and packaging costs, an $8 million depreciation adjustment tied to a capital lease, and higher SG&A. Cash flow was weaker in the first half. Net cash used in operating activities was $41 million, compared with cash provided of $256 million a year earlier, primarily because of $531 million in income tax payments related to the PepsiCo and Coca-Cola licensing agreements. Cash and cash equivalents fell to $303 million at June 30, 2012, from $701 million at December 31, 2011. The company repurchased 3.8 million shares for approximately $152 million in the first half and paid $141 million in dividends. Total stockholders' equity was $2,295 million and total long-term obligations were $2,020 million, with $701 million classified as current, including $450 million of 2.35% senior notes due December 21, 2012. The company stated it was in compliance with all financial covenants and that its operating cash flows are expected to be sufficient for the next twelve months. Its debt ratings were Baa1 (Moody's) and BBB (S&P), both with stable outlooks. The company also disclosed an $18 million accrued judgment in the Robert M. Ward age discrimination case, which it is appealing.

    Jul 26, 2012
  46. 2012-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2012

    Dr Pepper Snapple Group, Inc. (now Keurig Dr Pepper Inc.) reported net sales of $1,362 million for the three months ended March 31, 2012, up $31 million, or approximately 2%, from $1,331 million a year earlier. Net income fell to $102 million from $114 million, a decrease of approximately 11%, and diluted EPS was $0.48 versus $0.50. Income from operations declined to $192 million from $202 million, with gross margin of 57.1% compared with 58.9%, reflecting higher packaging, apple juice concentrate, sweetener and other commodity costs. Beverage Concentrates SOP fell $15 million, or approximately 10%, driven by higher marketing investment for Dr Pepper. Cash flow was dominated by a $508 million income tax payment tied to the PepsiCo and Coca-Cola licensing agreements, which drove net cash used in operating activities to $325 million. Cash and cash equivalents fell to $192 million at March 31, 2012 from $701 million at December 31, 2011. The company also repurchased 2.2 million shares for approximately $85 million and paid $68 million in dividends. Management declared a $0.34 per share quarterly dividend, a 6% increase over the prior quarter's dividend. Total debt carrying value, excluding capital leases, was $2,688 million, and the company stated it was in compliance with all covenant requirements. The filing notes a $450 million 2.35% senior note due December 21, 2012, and a $1,000 million remaining shelf capacity for debt securities. The company also disclosed a jury verdict in a California age discrimination case, with approximately $18 million accrued, which it plans to appeal.

    Apr 25, 2012
  47. 2011-Q3-A

    Keurig Dr Pepper Quarterly Report (Amendment) for Q3 Ended Sep 30, 2011

    This filing is Amendment No. 1 to Dr Pepper Snapple Group, Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, which the company states was originally filed with the SEC on October 26, 2011. The amendment makes only minor technical changes to the XBRL tagging in Exhibit 101 to accommodate the SEC XBRL viewer. The company states that no other changes have been made, that the amendment speaks as of the original filing date, and that it does not modify or update any disclosures in the original Form 10-Q. The company is now named Keurig Dr Pepper Inc. The cover page shows 214,381,344 shares of common stock, par value $0.01 per share, outstanding as of October 24, 2011. The registrant is identified as a large accelerated filer and is not a shell company. Its principal executive offices are at 5301 Legacy Drive, Plano, Texas. The filing's exhibit index lists the separation and distribution agreement with Cadbury Schweppes plc, the company's amended certificate of incorporation and by-laws, and several indentures and senior note issuances, including a $500 million 2.90% Senior Note due 2016 dated January 11, 2011. It also lists a computation of the ratio of earnings to fixed charges, officer certifications, and the XBRL financial information covering the statements of operations, balance sheets, cash flows, and notes to the condensed consolidated financial statements. This filing itself does not present operating results, margins, or other financial performance figures.

    Oct 27, 2011
  48. 2011-Q3

    Keurig Dr Pepper Quarterly Report for Q3 Ended Sep 30, 2011

    Dr Pepper Snapple Group, Inc. reported net sales of $1,529 million for the three months ended September 30, 2011, up $72 million, or approximately 5%, from $1,457 million a year earlier. Net income was $154 million, compared with $144 million, and diluted earnings per share were $0.71 versus $0.60. For the nine months, net sales were $4,442 million and net income was $440 million, with diluted EPS of $1.97 compared with $1.68 in the prior-year period. Income from operations for the nine months was $753 million, down slightly from $757 million, as higher SG&A and other operating expense offset a $26 million increase in gross profit. Cash flow from operations was $580 million for the nine months, down from $1,539 million, mainly because the prior year included a one-time $900 million nonrefundable payment from PepsiCo recorded as deferred revenue. The company repurchased 11.1 million shares for about $425 million in the nine months and paid $183 million in dividends. It issued $500 million of 2.90% senior notes due 2016 in January 2011, and cash and cash equivalents rose to $651 million at September 30, 2011. The filing states that the company expects to fund a 2011 Notes maturity of $400 million through new unsecured debt issuance, and that $535 million of tax payments tied to the PepsiCo and Coca-Cola licensing agreements are expected in 2012. Gross margin declined to 56.0% in the quarter from 58.8% due to higher packaging, sweetener, apple juice concentrate and other commodity costs. The company declared a quarterly dividend of $0.32 per share, up from $0.25 a year earlier, and reported its debt ratings as Baa1 (Moody's) and BBB (S&P), both with stable outlooks.

    Oct 26, 2011
  49. 2011-Q2

    Keurig Dr Pepper Quarterly Report for Q2 Ended Jun 30, 2011

    Dr Pepper Snapple Group, Inc. reported net sales of $1,582 million for the three months ended June 30, 2011, up $63 million, or approximately 4%, from $1,519 million a year earlier. Net income was $172 million, compared with $183 million, a decrease of $11 million, or approximately 6%. Diluted earnings per share were $0.77, versus $0.74. For the six months, net sales rose to $2,913 million from $2,767 million, while net income increased to $286 million from $272 million. Gross margin narrowed to 58.2% in the quarter from 61.0%, which the company attributed mainly to higher sweetener, packaging and other commodity costs. Income from operations fell to $290 million from $310 million, reflecting higher SG&A, including transportation costs tied to rising fuel prices. Cash flow from operations was $256 million for the six months, down from $1,266 million in the prior-year period, which had included a one-time $900 million nonrefundable payment from PepsiCo recorded as deferred revenue. During the first half, the company issued $500 million of 2.90% senior notes due 2016, repurchased $325 million of common stock, and paid $111 million in dividends. Cash and cash equivalents rose to $550 million at June 30, 2011, from $315 million at December 31, 2010. The filing also notes that Moody's raised the company's debt rating to Baa1 with a stable outlook during the quarter, and that the Board declared a quarterly dividend of $0.32 per share. The filing states that the company expects its operating cash flows to be sufficient to meet anticipated obligations for the next twelve months. It also discloses income tax payments of approximately $18 million in 2011 and $535 million in 2012 tied to the PepsiCo and Coca-Cola licensing agreements, which the company identifies as a future liquidity consideration.

    Jul 27, 2011
  50. 2011-Q1

    Keurig Dr Pepper Quarterly Report for Q1 Ended Mar 31, 2011

    Dr Pepper Snapple Group, Inc. reported net sales of $1,331 million for the three months ended March 31, 2011, an increase of $83 million, or approximately 7%, from $1,248 million a year earlier. Net income rose to $114 million from $89 million, an increase of approximately 28%, and diluted earnings per share were $0.50 compared with $0.35. Income from operations was $202 million versus $187 million, with gross margin of 58.9% compared with 60.3% a year earlier, reflecting higher sweetener, packaging and other commodity costs. The company's balance sheet strengthened in liquidity terms during the quarter. Cash and cash equivalents rose to $657 million from $315 million at December 31, 2010, following the January 2011 issuance of $500 million of 2.90% senior notes due 2016 and operating cash flow of $51 million. Operating cash flow fell sharply from $987 million in the prior-year period, which included a one-time $900 million nonrefundable payment from PepsiCo recorded as deferred revenue. Long-term obligations increased to $2,182 million from $1,687 million. The company repurchased 2.7 million shares for approximately $100 million and declared a quarterly dividend of $0.25 per share, paid April 8, 2011. Management stated that operating cash flows are expected to be sufficient to meet obligations for the next twelve months, and the filing notes approximately $55 million and $535 million of tax payments in 2011 and 2012, respectively, resulting from the PepsiCo and Coca-Cola licensing agreements.

    Apr 27, 2011