Keurig Dr Pepper Q4 2024 Earnings Report
Key Takeaways
Keurig Dr Pepper posted Q4 2024 revenue of $4.07 billion, representing a 5.2% year-over-year increase. Adjusted EPS grew 5.5% to $0.58, while GAAP EPS was impacted by goodwill and intangible impairments, resulting in a loss of $0.11 per share. U.S. Refreshment Beverages led growth with a 10.3% revenue increase, driven by strong volume/mix and price realization. The company also delivered significant free cash flow growth of 380.4% to $687 million.
Total revenue increased by 5.2% year-over-year to $4.07 billion.
U.S. Refreshment Beverages revenue grew 10.3%, led by carbonated soft drinks and Electrolit.
Adjusted EPS rose 5.5% to $0.58, while GAAP EPS declined due to impairments.
Free cash flow surged 380.4% to $687 million, driven by strong cash generation.
Keurig Dr Pepper Revenue
Keurig Dr Pepper EPS
Keurig Dr Pepper Revenue by Segment
Forward Guidance
Keurig Dr Pepper expects mid-single-digit net sales growth and high-single-digit adjusted EPS growth for 2025.
Positive Outlook
- Expected net sales growth in the mid-single-digit range.
- Adjusted EPS projected to grow in the high-single-digit range.
- Continued strong momentum in U.S. Refreshment Beverages.
- Anticipated benefits from the recent GHOST acquisition.
- Free cash flow expected to remain strong, supporting capital investments.
Challenges Ahead
- Foreign currency translation expected to be a 1-2% headwind on revenue.
- Higher SG&A expenses due to increased marketing investments.
- Potential pressure on U.S. Coffee segment from category headwinds.
- Inflationary pressures could impact margins despite productivity savings.
- Retail inventory management challenges may temporarily affect sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income