Keurig Dr Pepper Q3 2020 Earnings Report
Key Takeaways
Keurig Dr Pepper reported a strong third quarter, with net sales increasing by 5.2% to $3.02 billion and adjusted diluted EPS growing by 22% to $0.39. The company is confident in its ability to deliver 2020 at the high-end of its guidance and is reinvesting any upside performance in brand marketing and innovation.
Net sales increased by 5.2% to $3.02 billion.
Diluted earnings per share totaled $0.31, compared to $0.21 in the year-ago period.
Adjusted diluted EPS grew 22% to $0.39.
The Company generated strong free cash flow totaling $525 million.
Keurig Dr Pepper
Keurig Dr Pepper
Forward Guidance
KDP expects constant currency net sales growth for the full year at the high end of its 3% to 4% guidance range and Adjusted diluted EPS growth for the full year at the high end of its 13% to 15% guidance range, or $1.38 to $1.40 per diluted share.
Positive Outlook
- Constant currency net sales growth expected at the high end of 3% to 4% guidance.
- Adjusted diluted EPS growth expected at the high end of 13% to 15% guidance.
- Company intends to invest any upside performance in marketing and innovation.
- Management leverage ratio expected in the middle of 3.5x to 3.8x range by year end 2020.
- Management leverage ratio expected to be below 3.0x within two to three years of the July 2018 merger closing.