How did Keurig Dr Pepper perform in full-year 2024 on a GAAP versus adjusted basis?

Reported GAAP net sales were $15.35 billion, up 3.6%, and GAAP diluted EPS was $1.05, down 32.3%. On an adjusted basis, diluted EPS was $1.92, up 7.8%, excluding items affecting comparability such as impairments and GHOST-related charges.

What is the company's 2025 outlook?

KDP expects mid-single-digit net sales growth and high-single-digit Adjusted diluted EPS growth on a constant currency basis for 2025, including the anticipated contribution from the GHOST acquisition. Foreign currency translation is forecast to be a one to two percentage point headwind to growth.

How did the company's cash generation and balance sheet look at year-end 2024?

Operating cash flow rose 67.0% to $2.2 billion and free cash flow rose 81.8% to $1.7 billion. Total principal debt was $15.7 billion against $510 million of cash, giving a management leverage ratio of 3.3.

Which segments drove performance and which lagged?

U.S. Refreshment Beverages led with net sales up 5.8% to $9.3 billion and Adjusted operating income up 11.7%. U.S. Coffee net sales declined 2.6% to $4.0 billion, though K-Cup pod shipments were flat and brewer shipments rose 7.3%. International net sales rose 6.8% to $2.1 billion.

KDP 8-K: Earnings & Results

Q: What drove the decline in GAAP operating income?

GAAP operating income decreased 18.8% to $2.6 billion, primarily reflecting $718 million in goodwill and other intangible impairments and a $225 million accrual for upcoming GHOST distribution termination payments.

01—Abstract

Summary

Summary of the 8-K filed February 25, 2025. Cited figures are marked; the original filing is the authoritative source.

Keurig Dr Pepper Inc. (Nasdaq: KDP) reported fourth-quarter and full-year 2024 results on February 25, 2025, as set out in Exhibit 99.1, a press release titled "Keurig Dr Pepper Reports Q4 and Full Year 2024 Results and Provides 2025 Outlook." For full year 2024, reported net sales were $15.35 billion^a, up 3.6%, and constant currency net sales rose 3.9%.

GAAP diluted EPS was $1.05^b, down 32.3%, while Adjusted diluted EPS was $1.92, up 7.8%. GAAP operating income fell 18.8% to $2.6 billion, reflecting $718 million in goodwill and other intangible impairments and a $225 million accrual for upcoming GHOST distribution termination payments. Adjusted operating income rose 9.0% to $4.0 billion, or 25.9% of net sales.

By segment, U.S. Refreshment Beverages net sales grew 5.8% to $9.3 billion^c, U.S. Coffee net sales declined 2.6% to $4.0 billion, and International net sales rose 6.8% to $2.1 billion. Full-year operating cash flow increased 67.0% to $2.2 billion and free cash flow increased 81.8% to $1.7 billion. Fourth-quarter reported net sales were $4.07 billion, up 5.2%, and GAAP net loss was $(144) million, or $(0.11) per diluted share.

For 2025, the company targets mid-single-digit net sales growth and high-single-digit Adjusted diluted EPS growth on a constant currency basis, including the anticipated contribution from the recent GHOST acquisition. Foreign currency translation is forecast to be a one to two percentage point headwind to top- and bottom-line growth.

02—Key points

Key Highlights

Full-year 2024 net sales of $15.35 billion rose 3.6% reported and 3.9% in constant currency, led by U.S. Refreshment Beverages and International.
GAAP diluted EPS fell to $1.05 (down 32.3%), while Adjusted diluted EPS rose 7.8% to $1.92, driven by Adjusted operating income growth and a lower share count.
Q4 2024 included $718 million of non-cash impairments (primarily Snapple intangible brand assets and U.S. Warehouse Direct goodwill) and a $225 million accrual for GHOST distribution termination payments.
Operating cash flow grew 67.0% to $2.2 billion and free cash flow grew 81.8% to $1.7 billion for the full year.
U.S. Refreshment Beverages net sales rose 5.8% to $9.3 billion, while U.S. Coffee net sales fell 2.6% to $4.0 billion with unfavorable net price realization of 3.6%.
Management leverage ratio was 3.3 as of December 31, 2024, based on total principal debt of $15.7 billion less cash of $510 million.
2025 guidance calls for mid-single-digit constant currency net sales growth and high-single-digit Adjusted diluted EPS growth, including the anticipated contribution from GHOST.

03—Questions

Frequently Asked Questions

How did Keurig Dr Pepper perform in full-year 2024 on a GAAP versus adjusted basis?
Reported GAAP net sales were $15.35 billion, up 3.6%, and GAAP diluted EPS was $1.05, down 32.3%. On an adjusted basis, diluted EPS was $1.92, up 7.8%, excluding items affecting comparability such as impairments and GHOST-related charges.
What drove the decline in GAAP operating income?
GAAP operating income decreased 18.8% to $2.6 billion, primarily reflecting $718 million in goodwill and other intangible impairments and a $225 million accrual for upcoming GHOST distribution termination payments.
What is the company's 2025 outlook?
KDP expects mid-single-digit net sales growth and high-single-digit Adjusted diluted EPS growth on a constant currency basis for 2025, including the anticipated contribution from the GHOST acquisition. Foreign currency translation is forecast to be a one to two percentage point headwind to growth.
How did the company's cash generation and balance sheet look at year-end 2024?
Operating cash flow rose 67.0% to $2.2 billion and free cash flow rose 81.8% to $1.7 billion. Total principal debt was $15.7 billion against $510 million of cash, giving a management leverage ratio of 3.3.
Which segments drove performance and which lagged?
U.S. Refreshment Beverages led with net sales up 5.8% to $9.3 billion and Adjusted operating income up 11.7%. U.S. Coffee net sales declined 2.6% to $4.0 billion, though K-Cup pod shipments were flat and brewer shipments rose 7.3%. International net sales rose 6.8% to $2.1 billion.

04—Continue

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