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Keurig Q1 Earnings & Sales Beat, U.S. Refreshing Beverages Up 11%
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Keurig Dr Pepper Inc. (KDP - Free Report) posted first-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Both top and bottom lines also improved year over year.
Adjusted earnings per share (EPS) of 42 cents grew 10.5% year over year and outpaced the Zacks Consensus Estimate of 38 cents. The bottom-line improvement was driven by strong growth in adjusted operating income and a realized gain on the sale of an investment in Vita Coco. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise
The top-line performance was fueled by strong double-digit gains in U.S. Refreshing Beverages and solid trends in its International segment, which more than offset a challenging quarter in U.S. Coffee. This success was driven by continued momentum across key categories and brands, high-quality commercial execution and disciplined expense management. The company also extended its long-standing partnership with Vita Coco, reinforcing its strategic growth platform.
This Zacks Rank #3 (Hold) company’s shares have gained 8.3% in the past three months compared with the industry’s 8.9% growth.
KDP Stock's Three-Month Price Performance
Image Source: Zacks Investment Research
KDP’s Quarterly Performance
Net sales of $3.64 billion increased 4.8% year over year on a reported basis and surpassed the Zacks Consensus Estimate of $3.56 billion. On a constant-currency basis, net sales improved by 6.4%, backed by a 3.6% increase in volume/mix and a favorable net price realization of 2.8%.
The adjusted gross profit rose 1.8% year over year to $1.99 billion, while the adjusted gross margin fell 170 basis points (bps) to 54.6%.
The adjusted operating income rose 3.9% year over year to $847 billion due to higher sales, productivity savings and overhead efficiencies, partly negated by the impacts of inflation. Meanwhile, the adjusted operating margin contracted 50 bps year over year to 23.3%.
A Look at KDP’s Segmental Details
Sales in the U.S. Refreshment Beverages segment totaled $2.32 billion, up 11% year over year, reflecting 3% higher net price realization and 8% growth in volume/mix. This growth was supported by market share gains across key categories, including carbonated soft drinks, energy drinks and sports hydration. Additionally, the recent acquisition of GHOST contributed positively to the segment’s performance. The Zacks Consensus Estimate for the U.S. Refreshment Beverages segment was pegged at $2.23 billion for the first quarter of 2025.
Sales in the U.S. Coffee segment dipped 3.7% year over year to $877 million, reflecting net price realization improvement of 1.5%, somewhat offset by volume/mix decline of 5.2%. The decline in volume/mix was primarily driven by the timing of category pricing actions taken in response to rising green coffee costs. The Zacks Consensus Estimate for the U.S. Coffee segment’s sales was pegged at $885 billion.
Sales in the International segment fell 6.3% year over year to $435 million. On a constant-currency basis, the segment’s net sales increased 5.4%, gaining from a favorable net price realization of 4.1% and a volume/mix rise of 1.3%. The Zacks Consensus Estimate for the International segment’s sales was $448 million for the first quarter.
KPD’s Financial Health
As of March 31, 2025, Keurig Dr Pepper’s cash and cash equivalents were $653 million. The company had long-term obligations of $12 billion and total stockholders’ equity of $24.4 billion.
Net cash provided by operating activities totaled $209 million in the first quarter of 2025, with the free cash flow amounting to $102 million.
KDP’s 2025 Outlook
KDP reaffirmed its guidance for 2025. Management projects net sales increase in the mid-single-digits and adjusted EPS growth to be in the high-single-digits on a constant currency basis.
At current rates, foreign currency translation is likely to be nearly a one percentage point headwind on the top- and bottom-line growth in the current year.
Don’t Miss These Better-Ranked Stocks
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Fomento Economico Mexicano (FMX - Free Report) , Primo Brands Corporation (PRMB - Free Report) and Carlsberg (CABGY - Free Report) .
The Zacks Consensus Estimate for Fomento’s 2025 earnings suggests growth of 41.5% from the year-ago period’s reported figure. FMX sales for 2025 indicate a year-over-year decline of 3.6%.
Primo Brands is a branded beverage company with a focus on healthy hydration, delivering sustainably and domestically sourced diversified offerings. The company currently has a Zacks Rank #2.
The Zacks Consensus Estimate for PRMB’s 2025 earnings and sales indicates a surge of 146.6% and 57.4%, respectively, from the previous year’s reported figures. Primo Brands has a trailing four-quarter average earnings surprise of 7.2%.
Carlsberg is a brewing company and has operations in Northern and Western Europe, Eastern Europe, and Asia. CABGY currently has a Zacks Rank #2.
The Zacks Consensus Estimate for the company’s 2025 sales and earnings implies growth of 23.4% and 3.8%, respectively, from the previous year’s reported number.
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Keurig Q1 Earnings & Sales Beat, U.S. Refreshing Beverages Up 11%
Keurig Dr Pepper Inc. (KDP - Free Report) posted first-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Both top and bottom lines also improved year over year.
Adjusted earnings per share (EPS) of 42 cents grew 10.5% year over year and outpaced the Zacks Consensus Estimate of 38 cents. The bottom-line improvement was driven by strong growth in adjusted operating income and a realized gain on the sale of an investment in Vita Coco. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Keurig Dr Pepper, Inc Price, Consensus and EPS Surprise
Keurig Dr Pepper, Inc price-consensus-eps-surprise-chart | Keurig Dr Pepper, Inc Quote
The top-line performance was fueled by strong double-digit gains in U.S. Refreshing Beverages and solid trends in its International segment, which more than offset a challenging quarter in U.S. Coffee. This success was driven by continued momentum across key categories and brands, high-quality commercial execution and disciplined expense management. The company also extended its long-standing partnership with Vita Coco, reinforcing its strategic growth platform.
This Zacks Rank #3 (Hold) company’s shares have gained 8.3% in the past three months compared with the industry’s 8.9% growth.
KDP Stock's Three-Month Price Performance
Image Source: Zacks Investment Research
KDP’s Quarterly Performance
Net sales of $3.64 billion increased 4.8% year over year on a reported basis and surpassed the Zacks Consensus Estimate of $3.56 billion. On a constant-currency basis, net sales improved by 6.4%, backed by a 3.6% increase in volume/mix and a favorable net price realization of 2.8%.
The adjusted gross profit rose 1.8% year over year to $1.99 billion, while the adjusted gross margin fell 170 basis points (bps) to 54.6%.
The adjusted operating income rose 3.9% year over year to $847 billion due to higher sales, productivity savings and overhead efficiencies, partly negated by the impacts of inflation. Meanwhile, the adjusted operating margin contracted 50 bps year over year to 23.3%.
A Look at KDP’s Segmental Details
Sales in the U.S. Refreshment Beverages segment totaled $2.32 billion, up 11% year over year, reflecting 3% higher net price realization and 8% growth in volume/mix. This growth was supported by market share gains across key categories, including carbonated soft drinks, energy drinks and sports hydration. Additionally, the recent acquisition of GHOST contributed positively to the segment’s performance. The Zacks Consensus Estimate for the U.S. Refreshment Beverages segment was pegged at $2.23 billion for the first quarter of 2025.
Sales in the U.S. Coffee segment dipped 3.7% year over year to $877 million, reflecting net price realization improvement of 1.5%, somewhat offset by volume/mix decline of 5.2%. The decline in volume/mix was primarily driven by the timing of category pricing actions taken in response to rising green coffee costs. The Zacks Consensus Estimate for the U.S. Coffee segment’s sales was pegged at $885 billion.
Sales in the International segment fell 6.3% year over year to $435 million. On a constant-currency basis, the segment’s net sales increased 5.4%, gaining from a favorable net price realization of 4.1% and a volume/mix rise of 1.3%. The Zacks Consensus Estimate for the International segment’s sales was $448 million for the first quarter.
KPD’s Financial Health
As of March 31, 2025, Keurig Dr Pepper’s cash and cash equivalents were $653 million. The company had long-term obligations of $12 billion and total stockholders’ equity of $24.4 billion.
Net cash provided by operating activities totaled $209 million in the first quarter of 2025, with the free cash flow amounting to $102 million.
KDP’s 2025 Outlook
KDP reaffirmed its guidance for 2025. Management projects net sales increase in the mid-single-digits and adjusted EPS growth to be in the high-single-digits on a constant currency basis.
At current rates, foreign currency translation is likely to be nearly a one percentage point headwind on the top- and bottom-line growth in the current year.
Don’t Miss These Better-Ranked Stocks
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Fomento Economico Mexicano (FMX - Free Report) , Primo Brands Corporation (PRMB - Free Report) and Carlsberg (CABGY - Free Report) .
Fomento, which participates in the beverage industry through Coca-Cola FEMSA, currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Fomento’s 2025 earnings suggests growth of 41.5% from the year-ago period’s reported figure. FMX sales for 2025 indicate a year-over-year decline of 3.6%.
Primo Brands is a branded beverage company with a focus on healthy hydration, delivering sustainably and domestically sourced diversified offerings. The company currently has a Zacks Rank #2.
The Zacks Consensus Estimate for PRMB’s 2025 earnings and sales indicates a surge of 146.6% and 57.4%, respectively, from the previous year’s reported figures. Primo Brands has a trailing four-quarter average earnings surprise of 7.2%.
Carlsberg is a brewing company and has operations in Northern and Western Europe, Eastern Europe, and Asia. CABGY currently has a Zacks Rank #2.
The Zacks Consensus Estimate for the company’s 2025 sales and earnings implies growth of 23.4% and 3.8%, respectively, from the previous year’s reported number.