Coffee Service

Keurig Dr Pepper boosts Q4, FY 2023 sales, earnings

Image: Keurig Dr Pepper

February 22, 2024

Keurig Dr Pepper Inc. boosted its Q4 and FY 2023 sales and earnings against the prior year periods, according to an earnings report. Highlights include:

• Net sales for the fourth quarter increased 1.7% from $3.8 billion in Q4 2022 to $3.87 billion in the quarter ending Dec. 30. On a constant currency basis, net sales advanced 1.1%, driven by net price realization of 4.8%, partly offset by lower volume/mix of 3.7%.
• Net income rose 53% from $453 million to $693 million in the comparative quarters.
• Earnings per common share rose from 32 cents to 50 cents on a basic basis and from 32 cents to 49 cents on a diluted basis.
• Adjusted net income for the quarter advanced 7.1% to $770 million, and adjusted diluted EPS increased 10% to 55 cents, driven by the adjusted operating income growth and a benefit from Nutrabolt equity method earnings, partly offset by a higher year-over-year tax rate.
• U.S. refreshment beverages sales rose from $2.07 billion to $2.21 billion in the comparative quarters.
• U.S. coffee sales fell from $1.28 billion to $1.15 billion.
• International sales rose from $444 million to $495 million.
• Full-year net sales rose 5.4% from $14.05 billion to $14.81 billion.
• Full-year income from operations rose from $2.6 billion to $3.32 billion.
• Full-year U.S. refreshment beverages sales rose from $8.08 billion to $8.82 billion.
• Full-year U.S. coffee sales fell from $4.3 billion to $4.07 billion.
• Full-year international sales rose from $1.67 billion to $1.92 billion.
• Full-year adjusted diluted EPS rose 6% to $1.79.

Shares traded today at $30.27 against a 52-week range of $27.66 to $36.23.

The $3.87 billion in quarterly revenue missed analyst estimates of $39.2 billion while the 55 cents EPS surpassed expectations of 54 cents, according to investing.com.

"2023 was a year of significant progress for KDP," Bob Gamgort, chairman and CEO, said in the press release. "We delivered on our financial commitments while simultaneously enhancing the composition of our earnings profile and strengthening our balance sheet.

"We now enter 2024 with a high-quality foundation from which to grow, as we target performance in line with our long-term financial algorithm."

The company expects constant currency net sales growth in a mid-single-digit range and adjusted diluted EPS growth in a high-single-digit range in 2024.