Keurig Dr Pepper Files Q2 2024 10-Q

TL;DR

KDP filed its Q2 10-Q. Financials look steady.

AI Summary

Keurig Dr Pepper Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business segments are presented, reflecting the company's ongoing activities in the beverage industry.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Keurig Dr Pepper, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags.

Key Players & Entities

• Keurig Dr Pepper Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240725 (date) — Filing date
• Dr Pepper Snapple Group, Inc. (company) — Former company name

FAQ

Key Financial Figures

• $0.01 — he registrant's common stock, par value $0.01 per share, outstanding. KEURIG DR PEP
• $4 billion — KDP Revolving Credit Agreement KDP's $4 billion revolving credit agreement, which was e

Filing Documents

• kdp-20240630.htm (10-Q) — 1685KB
• kdp-ex311_20240630.htm (EX-31.1) — 11KB
• kdp-ex312_20240630.htm (EX-31.2) — 11KB
• kdp-ex321_20240630.htm (EX-32.1) — 5KB
• kdp-ex322_20240630.htm (EX-32.2) — 6KB
• kdp-20240630_g1.jpg (GRAPHIC) — 26KB
• kdp-20240630_g2.jpg (GRAPHIC) — 16KB
• kdp-20240630_g3.jpg (GRAPHIC) — 18KB
• kdp-20240630_g4.jpg (GRAPHIC) — 15KB
• kdp-20240630_g5.jpg (GRAPHIC) — 16KB
• kdp-20240630_g6.jpg (GRAPHIC) — 80KB
• kdp-20240630_g7.jpg (GRAPHIC) — 56KB
• 0001418135-24-000073.txt ( ) — 10030KB
• kdp-20240630.xsd (EX-101.SCH) — 46KB
• kdp-20240630_cal.xml (EX-101.CAL) — 90KB
• kdp-20240630_def.xml (EX-101.DEF) — 230KB
• kdp-20240630_lab.xml (EX-101.LAB) — 714KB
• kdp-20240630_pre.xml (EX-101.PRE) — 514KB
• kdp-20240630_htm.xml (XML) — 1785KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Statements of Income 1 Condensed Consolidated Statements of Comprehensive Income 2 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Cash Flows 4 Condensed Consolidated Statements of Changes in Stockholders' Equity 6 Notes to Condensed Consolidated Financial Statements 8 1 General 8 2 Long-Term Obligations and Borrowing Arrangements 8 3 Goodwill and Other Intangible Assets 11 4 Derivatives 12 5 Leases 15 6 Segments 16 7 Revenue Recognition 17 8 Earnings Per Share 19 9 Stock-Based Compensation 19 10 Investments 20 11 Income Taxes 20 12 Accumulated Other Comprehensive Income 21 13 Other Financial Information 22 14 Commitments and Contingencies 24 15 Restructuring 25 16 Transactions with Related Parties 25 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4

Controls and Procedures

Controls and Procedures 40 Part II Other Information Item 1

Legal Proceedings

Legal Proceedings 41 Item 1A

Risk Factors

Risk Factors 41 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 5 Other Information 41 Item 6 Exhibits 42 s-i KEURIG DR PEPPER INC. FORM 10-Q MASTER GLOSSARY Term Definition Annual Report Annual Report on Form 10-K for the year ended December 31, 2023 AOCI Accumulated other comprehensive income or loss Athletic Brewing Athletic Brewing Holding Company, LLC, an equity method investment of KDP Board The Board of Directors of KDP bps Basis points CEO Chief Executive Officer Chobani FHU US Holdings LLC, an equity method investment of KDP Circana Circana, Inc., a market information provider DIO Days inventory outstanding DPO Days of payables outstanding DPS Dr Pepper Snapple Group, Inc. DPS Merger The combination of the business operations of Keurig and DPS as of July 9, 2018 DSD Direct Store Delivery, KDP's route-to-market whereby finished beverages are delivered directly to retailers DSO Days sales outstanding EPS Earnings per share Exchange Act Securities Exchange Act of 1934, as amended FX Foreign exchange JAB JAB Holding Company S.a.r.l. and affiliates KDP Keurig Dr Pepper Inc. Keurig Keurig Green Mountain, Inc., a wholly-owned subsidiary of KDP, and the brand of our brewers LRB Liquid refreshment beverages Notes Collectively, the Company's senior unsecured notes Nutrabolt Woodbolt Holdings LLC, d/b/a Nutrabolt, an equity method investment of KDP Revolving Credit Agreement KDP's $4 billion revolving credit agreement, which was executed in February 2022 RSU Restricted share unit RTD Ready to drink Tractor Tractor Beverages, Inc., an equity method investment of KDP SEC Securities and Exchange Commission SG&A Selling, general and administrative SOFR Secured Overnight Financing Rate U.S. GAAP Accounting principles generally accepted in the U.S. Vita Coco The Vita Coco Company, Inc. WD Warehouse Direct, KDP's route-to-market whereby finished beverages are shipped to retailer ware

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME ( UNAUDITED ) Second Quarter First Six Months (in millions, except per share data) 2024 2023 2024 2023 Net sales $ 3,922 $ 3,789 $ 7,390 $ 7,142 Cost of sales 1,750 1,748 3,278 3,357 Gross profit 2,172 2,041 4,112 3,785 Selling, general and administrative expenses 1,295 1,272 2,471 2,437 Other operating expense (income), net 16 — 15 ( 5 ) Income from operations 861 769 1,626 1,353 Interest expense, net 204 172 382 195 Other income, net ( 15 ) ( 16 ) ( 22 ) ( 36 ) Income before provision for income taxes 672 613 1,266 1,194 Provision for income taxes 157 110 297 224 Net income $ 515 $ 503 $ 969 $ 970 Earnings per common share: Basic $ 0.38 $ 0.36 $ 0.71 $ 0.69 Diluted 0.38 0.36 0.70 0.69 Weighted average common shares outstanding: Basic 1,355.6 1,400.3 1,368.2 1,403.2 Diluted 1,361.2 1,409.1 1,374.4 1,413.1 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 1 Table of Contents KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ( UNAUDITED ) Second Quarter First Six Months (in millions) 2024 2023 2024 2023 Net income $ 515 $ 503 $ 969 $ 970 Other comprehensive (loss) income: Foreign currency translation adjustments ( 201 ) 159 ( 257 ) 267 Net change in cash flow hedges, net of tax of $ 1 , $ 3 , $ 1 and $ 24 , respectively 21 ( 17 ) 19 ( 99 ) Total other comprehensive (loss) income ( 180 ) 142 ( 238 ) 168 Comprehensive income $ 335 $ 645 $ 731 $ 1,138 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 2 Table of Contents KEURIG DR PEPPER INC. CONDENSED CONSOLIDATED BALANCE SHEETS ( UNAUDITED ) June 30, December 31, (in millions, except share and per share data) 2024 2023 Assets Current assets: Cash and cash equivalents $ 438 $ 267 Trade accounts receivable, ne

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View this 10-Q filing on SEC EDGAR