Keurig Dr Pepper CEO Tim Cofer has boasted good results for 2024 and expects 2025 to be equally positive, thanks, he says, to consistent currency and non-GAAP ( Generally Accepted Accounting Principles ) measures.
Cofer says the strong performance in 2024 is in line with a long-term approach and preparing KDP for the next phase of growth. They have increased market share with innovative marketing actions in the soft drink and coffee brands, and are making a strategic expansion with the acquisition of GHOST, the energy drink brand that has gained popularity, especially in the functional beverage market.
Cofer said, “Despite operational challenges, we are confident that the strategic thrust will continue to generate good results in 2025.”
Full year results 2024:
- Net sales grew 3.6% to $15.4 billion. At constant exchange rates, growth was 3.9%.
- GAAP operating income declined 18.8%, due to impairments of goodwill and other intangible assets, as well as payments related to GHOST. However, adjusted operating income increased by 9% to $4.0 billion.
- GAAP net income decreased 33.9%, while adjusted net income increased 4.7%.
- Operating cash flow grew 67% to $2.2 billion and free cash flow increased 82% to $1.7 billion.
Segment results in 2024:
- U.S. Soft Drinks: Sales increased 5.8% to $9.3 billion, driven by a good performance in CSDs and the contribution of Electrolit. Adjusted operating income grew 11.7%.
- U.S. Coffee: Net sales fell 2.6% to $4.0 billion. However, shipments of K-Cup® capsules remained stable. Adjusted operating income decreased 3.2%.
- International: Net sales increased 6.8% to $2.1 billion, and adjusted operating income grew 13.5%.
Fourth quarter results 2024:
- Net sales grew 5.2% to $4.1 billion. At constant exchange rates, growth was 6.2%.
- GAAP operating income decreased 93.3%, due to the same factors that affected annual results. However, adjusted operating income grew by 3.4%.
- GAAP net income fell 120.8%, while adjusted net income increased 3.2%.
Segmented results for the fourth quarter:
- U.S. Soft Drinks: Sales increased 10.3% to $2.4 billion. Adjusted operating income grew 8.6%.
- U.S. Coffee: Sales decreased 2.4% to $1.1 billion. Adjusted operating income fell 5.7%.
- International: Sales increased 0.8% to $0.5 billion. Adjusted operating income decreased 8.6%.
Discrete earnings growth in the fourth quarter of 2024
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