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Dec 31, 2022

Keurig Dr Pepper Q4 2022 Earnings Report

Keurig Dr Pepper reported Q4 2022 results, achieving guidance for 2022 and providing outlook for 2023.

Key Takeaways

Keurig Dr Pepper reported a 12.1% increase in net sales for the fourth quarter of 2022, driven by a 13.1% increase in net price realization, partially offset by a 0.7% decrease in volume/mix. Adjusted diluted EPS increased by 11.1% to $0.50. The company provided guidance for 2023, expecting net sales growth of 5% and Adjusted diluted EPS growth of 6% to 7%.

Drove double-digit net sales growth of 11%, significantly ahead of the Company’s initial guidance of mid-single-digit growth and in line with its guidance update in the second quarter.

Delivered Adjusted diluted EPS growth of 5%, in line with the Company’s mid-single-digit guidance.

Grew market share in Cold Beverages in categories representing 92% of the Company’s U.S. retail sales base.

Expanded the Keurig brewing system to 38 million U.S. households, a 10 million household increase since 2018.

Total Revenue
$3.8B
Previous year: $3.39B
+12.1%
EPS
$0.5
Previous year: $0.45
+11.1%
Gross Profit
$2B
Previous year: $1.77B
+12.6%
Cash and Equivalents
$535M
Previous year: $567M
-5.6%
Free Cash Flow
$646M
Previous year: $843M
-23.4%
Total Assets
$51.8B
Previous year: $50.6B
+2.4%

Keurig Dr Pepper

Keurig Dr Pepper

Forward Guidance

KDP expects net sales growth of 5% and Adjusted diluted EPS growth of 6% to 7% in 2023, primarily reflecting an improved relationship between pricing and inflation. Foreign currency translation is expected to approximate a half of one percentage point headwind to both net sales and Adjusted EPS growth.

Positive Outlook

  • Net sales growth of 5%
  • Adjusted diluted EPS growth of 6% to 7%
  • Improved relationship between pricing and inflation

Challenges Ahead

  • Foreign currency translation is expected to approximate a half of one percentage point headwind to both net sales and Adjusted EPS growth.