- Keurig Dr Pepper reported first-quarter net sales of $3.64 billion, a 4.8% increase year-over-year, surpassing estimates of $3.57 billion.
- US Refreshment Beverages net sales increased by 11% to $2.32 billion, exceeding the estimated $2.25 billion.
- US Coffee net sales decreased by 3.7% to $877 million, slightly below the projected $880.8 million.
- International net sales fell 6.3% to $435 million, missing the estimate of $445.4 million.
- Adjusted earnings per share were 42 cents, up from 38 cents year-over-year, and surpassing the estimate of 38 cents.
- Net price realization at constant currency rose by 2.8%, slightly lower than last year’s 3.1%, but above the estimated 2.14%.
- US Refreshment Beverages prices increased by 3%, under last year’s 5.6% but higher than the estimated 2.1%.
- US Coffee prices rose by 1.5%, reversing last year’s decline of 1.8%, closely matching the estimate of 1.54%.
- International net pricing at constant currency improved by 4.1%, up from last year’s 2.2% and exceeding the estimate of 2.92%.
- Volume/mix at constant currency increased by 3.6%, better than last year’s -0.3% and above the expectation of 0.99%.
- US Refreshment Beverages saw an 8% increase in volume/mix, much higher than the 2.73% estimate.
- US Coffee volume/mix dropped by 5.2%, compared to last year’s -0.3% and the estimate of -4.51%.
- International volume/mix at constant currency rose by 1.3%, lower than last year’s 4.8% and below the 2.71% estimate.
- Adjusted operating income was $847 million, a 2.7% increase year-over-year, surpassing the estimated $833.3 million.
- Keurig Dr Pepper reaffirmed its 2025 guidance for mid-single-digit net sales growth and high-single-digit adjusted EPS growth.
- Foreign currency translation is expected to create a one percentage point headwind for full-year growth in 2025.
- The company anticipates another solid growth year despite changing market conditions.
Keurig Dr Pepper on Smartkarma
Keurig Dr Pepper’s performance and strategy have attracted positive analyst coverage on Smartkarma from Baptista Research. In their report titled “Keurig Dr Pepper: International Expansion & Performance To Yield Positive Results In Long Term?“, the analysts highlighted the company’s fourth quarter and full-year 2024 earnings, emphasizing a 4% growth in constant currency net sales and an 8% increase in earnings per share despite challenges like inflation and supply chain constraints. Baptista Research is evaluating various factors that could impact the company’s value in the near future, using a Discounted Cash Flow (DCF) methodology for independent valuation.
Another analysis by Baptista Research, titled “Keurig Dr Pepper (KDP): The Tale Of Brewer Innovation and Market Expansion To Up Their Game! – Major Drivers,” focused on KDP’s third-quarter 2024 earnings report. The report discussed the CEO and CFO’s insights on the company’s growth achievements and strategic moves to enhance its market position. Baptista Research continues to assess the company’s potential and is conducting an independent valuation using a DCF approach to gauge Keurig Dr Pepper’s investment attractiveness.
A look at Keurig Dr Pepper Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts indicate that Keurig Dr Pepper is positioned for long-term success, with a solid overall outlook based on Smartkarma Smart Scores. The company scores moderately across various key factors, with a Value score of 3, Dividend score of 3, Growth score of 3, Resilience score of 3, and a strong Momentum score of 5. This indicates a positive sentiment towards the company’s future prospects, supported by its stable performance in key areas.
Keurig Dr Pepper Inc., known for manufacturing and distributing a range of non-alcoholic beverages, including soft drinks, juices, teas, mixers, and water, operates in the United States, Canada, and Mexico. With balanced scores in important aspects like Value, Dividend, Growth, and Resilience, coupled with a strong Momentum score, the company appears to be well-positioned to maintain its market presence and potentially drive future growth.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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