0001418135FALSE00014181352024-07-252024-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2024
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Keurig Dr Pepper Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3382998-0517725
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
53 South Avenue, Burlington, Massachusetts 01803
(Address of principal executive offices, including zip code)
781-418-7000
(Registrant’s telephone number including area code)
Not Applicable
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐     Pre-commencement communications pursuant to Rule 13e-14(c) under the Exchange Act (17 CFR 240.13e-14(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).                         

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stockKDPThe Nasdaq Stock Market LLC




Item 2.02. Results of Operations and Financial Condition.
The information contained in this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
On July 25, 2024, Keurig Dr Pepper Inc. (the "Company" or "KDP") issued a press release announcing the Company's financial results for the second quarter of 2024. A copy of such press release is attached as Exhibit 99.1 and is also available on the Company’s web site at http://www.keurigdrpepper.com.


Item 9.01. Financial Statements and Exhibits.
Exhibit No.Description
  
Keurig Dr Pepper Inc. Press Release dated July 25, 2024 - "Keurig Dr Pepper Reports Q2 2024 Results"
104Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
     
 KEURIG DR PEPPER INC. 
Dated: July 25, 2024
  
 By:/s/ Anthony Shoemaker
  Name:Anthony Shoemaker
  Title:Chief Legal Officer, General Counsel and Secretary


EXHIBIT 99.1
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Keurig Dr Pepper Reports Q2 2024 Results and Reaffirms Fiscal 2024 Guidance

Net Sales Led by Double-Digit Growth in International and Solid U.S. Refreshment Beverages Performance
Company Continues to Expect On-Algorithm Net Sales and Adjusted EPS Growth in 2024

BURLINGTON, MA and FRISCO, TX (July 25, 2024) – Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the second quarter of 2024 and reaffirmed its full year guidance.
Reported GAAP Basis
Adjusted Basis1
Q2YTDQ2YTD
Net Sales$3.92 bn$7.39 bn$3.92 bn$7.39 bn
% vs prior year3.5%3.5%3.4%3.1%
Diluted EPS$0.38$0.70$0.45$0.84
% vs prior year5.6%1.4%7.1%9.2%
Commenting on the quarter, CEO Tim Cofer stated, “Our second quarter results were healthy, with accelerating net sales trends, significant margin expansion, and solid EPS growth. Strong execution drove our performance, as we continued to advance our long-term strategic agenda. Our consumer-centric innovation model is resonating in market, our portfolio expansion to higher growth categories is ongoing, and we are actively enhancing an already robust route-to-market — all underpinned by an unrelenting focus on cost efficiency and capital discipline. Now halfway through 2024, we are on track to achieve our unchanged full year outlook, while also seeding initiatives to fuel consistent growth over multiple years.”
Second Quarter Consolidated Results
Net sales for the second quarter increased 3.5% to $3.9 billion. On a constant currency basis, net sales advanced 3.4%, driven by volume/mix growth of 1.8% and higher net price realization of 1.6%.
GAAP operating income increased 12.0% to $861 million. Adjusted operating income increased 11.0% to $970 million and totaled 24.7% as a percent of net sales. GAAP and Adjusted operating income growth primarily reflected the benefits of higher net price realization and net productivity.
GAAP net income increased 2.4% to $515 million, or $0.38 per diluted share. Adjusted net income increased 3.2% to $618 million, and Adjusted diluted EPS increased 7.1% to $0.45. GAAP and Adjusted diluted EPS growth was driven by the strong operating income growth and a lower share count, partly offset by higher interest expense and a higher tax rate.
Operating cash flow for the second quarter was $657 million and free cash flow totaled $543 million.
Second Quarter Segment Results
U.S. Refreshment Beverages
Net sales for the second quarter increased 3.3% to $2.4 billion, driven by net price realization of 2.9% and volume/mix growth of 0.4%. This volume/mix performance reflected increased scale from recent partnerships and in-market traction from launched innovation.
________________________________________
1 Adjusted financial metrics presented in this release are non-GAAP, excluding items affecting comparability and with growth rates presented on a constant currency basis. See reconciliations of GAAP results to Adjusted results on a constant currency basis in the accompanying tables.


GAAP operating income increased 14.0% to $717 million. Adjusted operating income increased 11.9% to $723 million and totaled 30.0% as a percent of net sales. GAAP and Adjusted operating income growth was driven by higher net price realization and net productivity.
U.S. Coffee
Net sales for the second quarter decreased 2.1% to $1.0 billion, with volume/mix growth of 0.8% more than offset by a net price decline of 2.9%.
K-Cup® Pod shipments increased 0.2%, led by strong market share trends in the Company’s owned & licensed portfolio.
Brewer shipments totaled 10.1 million for the twelve months ending June 30, 2024, increasing 1.4% year-over-year, reflecting continued Keurig market share momentum.
GAAP operating income decreased 8.8% to $228 million, primarily due to certain unfavorable year-over-year impact of items affecting comparability. Adjusted operating income increased 0.3% to $293 million and totaled 30.8% as a percent of net sales. Adjusted operating income reflected the benefit of net productivity, offset by the continued impact of targeted value investments.
International
Net sales for the second quarter increased 15.5% to $0.6 billion. On a constant currency basis, net sales advanced 14.7%, driven by volume/mix growth of 10.4% and net price realization of 4.3%. This performance reflected broad-based strength across the portfolio.
GAAP operating income increased 33.9% to $150 million. Adjusted operating income increased 30.2% to $152 million and totaled 26.9% as a percent of net sales. GAAP and Adjusted operating income growth was driven by the strong net sales growth and net productivity, partially offset by a meaningful increase in marketing investment.

2024 Guidance
The 2024 guidance provided below is presented on a constant currency, non-GAAP basis. The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as non-cash gains or losses resulting from mark-to-market adjustments of derivative instruments, among others, which could be material.

KDP reaffirmed its fiscal 2024 guidance for constant currency net sales growth in a mid-single-digit range and Adjusted diluted EPS growth in a high-single-digit range.

















Investor Contacts:
Investor Relations
T: 888-340-5287 / IR@kdrp.com
Media Contact:
Katie Gilroy
T: 781-418-3345 / katie.gilroy@kdrp.com

ABOUT KEURIG DR PEPPER
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company in North America, with a portfolio of more than 125 owned, licensed and partner brands and powerful distribution capabilities to provide a beverage for every need, anytime, anywhere. With annual revenue of approximately $15 billion, we hold leadership positions in beverage categories including soft drinks, coffee, tea, water, juice and mixers, and have the #1 single serve coffee brewing system in the U.S. and Canada. Our innovative partnership model builds emerging growth platforms in categories such as premium coffee, energy, sports hydration and ready-to-drink coffee. Our brands include Keurig®, Dr Pepper®, Canada Dry®, Mott's®, A&W®, Snapple®, Peñafiel®, 7UP®, Green Mountain Coffee Roasters®, Clamato®, Core Hydration® and The Original Donut Shop®. Driven by a purpose to Drink Well. Do Good., our 28,000 employees aim to enhance the experience of every beverage occasion and to make a positive impact for people, communities and the planet. For more information, visit www.keurigdrpepper.com and follow us on LinkedIn.
FORWARD LOOKING STATEMENTS
Certain statements contained herein are “forward-looking statements” within the meaning of applicable securities laws and regulations. These forward-looking statements can generally be identified by the use of words such as “outlook,” “guidance,” “anticipate,” “enable,” “expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,” “may,” “on track,” “plan,” “potential,” “project,” “should,” “target,” “will,” “would,” and similar words. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially.
Forward-looking statements are subject to a number of risks and uncertainties, including the factors disclosed in our Annual Report on Form 10-K and subsequent filings with the SEC. We are under no obligation to update, modify or withdraw any forward-looking statements, except as required by applicable law.
NON-GAAP FINANCIAL MEASURES
This release includes certain non-GAAP financial measures, which differ from results using U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures should be considered as supplements to and should not be considered replacements for, or superior to, the GAAP measures. These measures may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define the non-GAAP financial measure in the same way. Non-GAAP financial measures typically exclude certain charges, including one-time costs that are not expected to occur routinely in future periods, described by the Company as “items affecting comparability”. Refer to page A-5 for the Company’s description of items affecting comparability for each period presented. The Company uses non-GAAP financial measures to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Additionally, we use non-GAAP financial measures in making operational and financial decisions and in our budgeting and planning process. We believe that providing non-GAAP financial measures to investors helps investors evaluate our operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance.


Adjusted gross profit. Adjusted gross profit is defined as Net sales less Cost of sales, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted gross profit is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Adjusted operating income. Adjusted operating income is defined as Income from operations, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted operating income is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Adjusted net income attributable to KDP. Adjusted net income attributable to KDP is defined as Net income attributable to KDP, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted net income is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Adjusted diluted EPS. Adjusted diluted EPS is defined as Diluted EPS, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted diluted EPS is useful for investors in providing period-to-period comparisons of the results of our operations since it adjusts for certain items affecting overall comparability.
Adjusted gross margin. Adjusted gross margin is defined as Adjusted gross profit divided by Net sales. Management believes that Adjusted gross margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs.
Adjusted operating margin. Adjusted operating margin is defined as Adjusted Income from operations divided by Net sales. Management believes that Adjusted operating margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs.
Adjusted interest expense. Adjusted interest expense is defined as Interest expense, net, as adjusted for items affecting comparability as described on page A-5. Management believes that Adjusted interest expense is useful for investors in evaluating our performance and establishing expectations for the impacts of interest expenses.
Adjusted EBITDA. Adjusted EBITDA is defined as EBITDA, as adjusted for items affecting comparability as described on page A-5. EBITDA is defined as Net income attributable to KDP as adjusted for interest expense, net; provision for income taxes; depreciation expense; amortization of intangibles; and other amortization. Management believes that Adjusted EBITDA is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Management leverage ratio. Management leverage ratio is defined as KDP’s total principal amounts of debt less cash and cash equivalents, divided by Adjusted EBITDA. Management believes that the Management leverage ratio is useful for investors in evaluating the Company’s liquidity and assessing the Company's ability to meet its financial obligations.
Free cash flow. Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant and equipment, proceeds from sales of property, plant and equipment, and certain items excluded for comparison to prior year periods. Management uses this measure to evaluate the company’s performance and make resource allocation decisions.
Financial measures presented on a constant currency basis. Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates. Because our reporting currency is the U.S. Dollar, the value of financial measures presented in U.S. Dollar will be affected by changes in currency exchange rates. Therefore, we present certain financial measures on a constant currency basis for greater comparability.


KEURIG DR PEPPER INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 Second QuarterFirst Six Months
(in millions, except per share data)2024202320242023
Net sales$3,922 $3,789 $7,390 $7,142 
Cost of sales1,750 1,748 3,278 3,357 
Gross profit2,172 2,041 4,112 3,785 
Selling, general, and administrative expenses1,295 1,272 2,471 2,437 
Other operating expense (income), net16 — 15 (5)
Income from operations861 769 1,626 1,353 
Interest expense, net204 172 382 195 
Other income, net(15)(16)(22)(36)
Income before provision for income taxes672 613 1,266 1,194 
Provision for income taxes157 110 297 224 
Net income$515 $503 $969 $970 
Earnings per common share:
Basic$0.38 $0.36 $0.71 $0.69 
Diluted0.38 0.36 0.70 0.69 
Weighted average common shares outstanding:
Basic1,355.6 1,400.3 1,368.2 1,403.2 
Diluted1,361.2 1,409.1 1,374.4 1,413.1 





A-1
KEURIG DR PEPPER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 June 30,December 31,
(in millions, except share and per share data)20242023
Assets
Current assets:  
Cash and cash equivalents$438 $267 
Trade accounts receivable, net1,390 1,368 
Inventories1,252 1,142 
Prepaid expenses and other current assets739 598 
Total current assets3,819 3,375 
Property, plant and equipment, net2,680 2,699 
Investments in unconsolidated affiliates1,468 1,387 
Goodwill20,081 20,202 
Other intangible assets, net23,108 23,287 
Other non-current assets1,144 1,149 
Deferred tax assets44 31 
Total assets$52,344 $52,130 
Liabilities and Stockholders' Equity
Current liabilities:  
Accounts payable3,099 3,597 
Accrued expenses1,302 1,242 
Structured payables91 117 
Short-term borrowings and current portion of long-term obligations2,399 3,246 
Other current liabilities618 714 
Total current liabilities7,509 8,916 
Long-term obligations12,406 9,945 
Deferred tax liabilities5,746 5,760 
Other non-current liabilities1,965 1,833 
Total liabilities27,626 26,454 
Commitments and contingencies
Stockholders' equity:  
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued
— — 
Common stock, $0.01 par value, 2,000,000,000 shares authorized, 1,355,763,506 and 1,390,446,043 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
14 14 
Additional paid-in capital19,683 20,788 
Retained earnings4,944 4,559 
Accumulated other comprehensive income77 315 
Total stockholders' equity24,718 25,676 
Total liabilities and stockholders' equity$52,344 $52,130 

A-2
KEURIG DR PEPPER INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 First Six Months
(in millions)20242023
Operating activities:  
Net income$969 $970 
Adjustments to reconcile net income to net cash provided by operating activities: 
Depreciation expense207 201 
Amortization of intangibles67 69 
Other amortization expense101 91 
Provision for sales returns29 26 
Deferred income taxes17 (26)
Employee stock-based compensation expense52 57 
Loss (gain) on disposal of property, plant, and equipment18 (2)
Unrealized loss (gain) on foreign currency16 (13)
Unrealized loss (gain) on derivatives36 (31)
Equity in earnings of unconsolidated affiliates(17)(14)
Earned equity(45)(2)
Other, net5 (7)
Changes in assets and liabilities:  
Trade accounts receivable(67)162 
Inventories(119)(61)
Income taxes receivable and payables, net(34)(70)
Other current and non-current assets(180)(147)
Accounts payable and accrued expenses(314)(762)
Other current and non-current liabilities1 11 
Net change in operating assets and liabilities(713)(867)
Net cash provided by operating activities742 452 
Investing activities:  
Purchases of property, plant, and equipment(273)(149)
Proceeds from sales of property, plant, and equipment1 8 
Purchases of intangibles(49)(55)
Investments in unconsolidated affiliates(7)(8)
Other, net(1)1 
Net cash used in investing activities(329)(203)
Financing activities:  
Proceeds from issuance of Notes
3,000 — 
Repayments of Notes
(1,150)— 
Net (repayment) issuance of commercial paper(226)589 
Proceeds from structured payables31 61 
Repayments of structured payables(60)(72)
Cash dividends paid(591)(563)
Repurchases of common stock(1,105)(457)
Tax withholdings related to net share settlements(43)(32)
Payments on finance leases(56)(49)
Other, net(22)— 
Net cash used in financing activities(222)(523)
Cash and cash equivalents:  
Net change from operating, investing and financing activities191 (274)
Effect of exchange rate changes(20)17 
Beginning balance267 535 
Ending balance$438 $278 
A-3
KEURIG DR PEPPER INC.
RECONCILIATION OF SEGMENT INFORMATION
(UNAUDITED)

Second QuarterFirst Six Months
(in millions)2024202320242023
Net Sales
U.S. Refreshment Beverages$2,407 $2,330 $4,500 $4,337 
U.S. Coffee950 970 1,861 1,901 
International565 489 1,029 904 
Total net sales$3,922 $3,789 $7,390 $7,142 
Income from Operations
U.S. Refreshment Beverages$717 $629 $1,332 $1,119 
U.S. Coffee228 250 476 482 
International150 112 262 192 
Unallocated corporate costs(234)(222)(444)(440)
Total income from operations$861 $769 $1,626 $1,353 

A-4
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN NON-GAAP INFORMATION
(UNAUDITED)
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures that reflect the way management evaluates the business may provide investors with additional information regarding the Company's results, trends and ongoing performance on a comparable basis.
Specifically, investors should consider the following with respect to our financial results:
Adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability.
Items affecting comparability: Defined as certain items that are excluded for comparison to prior year periods, adjusted for the tax impact as applicable. Tax impact is determined based upon an approximate rate for each item. For each period, management adjusts for (i) the unrealized mark-to-market impact of derivative instruments not designated as hedges in accordance with U.S. GAAP that do not have an offsetting risk reflected within the financial results, as well as the unrealized mark-to-market impact of our Vita Coco investment; (ii) the amortization associated with definite-lived intangible assets; (iii) the amortization of the deferred financing costs associated with the DPS Merger; (iv) the amortization of the fair value adjustment of the senior unsecured notes obtained as a result of the DPS Merger; (v) stock compensation expense and the associated windfall tax benefit attributable to the matching awards made to employees who made an initial investment in KDP; (vi) transaction costs for significant business combinations (completed or abandoned); (vii) non-cash changes in deferred tax liabiltiies related to goodwill and other intangible assets as a result of tax rate or apportionment changes; and (viii) other certain items that are excluded for comparison purposes to prior year periods.
For the second quarter and first six months of 2024, the other certain items excluded for comparison purposes include (i) productivity expenses, (ii) restructuring expenses associated with the 2023 CEO Succession and Associated Realignment, (iii) costs related to significant non-routine legal matters, specifically the antitrust litigation, and (iv) restructuring expenses associated with the 2024 Network Optimization.
For the second quarter and first six months of 2023, the other certain items excluded for comparison purposes include (i) productivity expenses, and (ii) costs related to significant non-routine legal matters, specifically the antitrust litigation. Additionally, the non-cash changes in deferred tax liabilities related to goodwill and other intangible assets during the second quarter of 2023 included an immaterial non-cash true-up of the valuation of foreign deferred tax liabilities related to a prior period.
Constant currency adjusted: Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates.
For the second quarter and first six months of 2024 and 2023, the supplemental financial data set forth below includes reconciliations of adjusted and constant currency adjusted financial measures to the applicable financial measure presented in the unaudited condensed consolidated financial statements for the same period.
A-5
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN NON-GAAP INFORMATION
(UNAUDITED)
Gross profitGross marginIncome from operationsOperating margin
For the Second Quarter of 2024
Reported$2,172 55.4 %$861 22.0 %
Items Affecting Comparability:
Mark to market6 (5)
Amortization of intangibles— 34 
Stock compensation— 3 
Restructuring - 2023 CEO Succession and Associated Realignment— 11 
Productivity20 45 
Non-routine legal matters— 1 
Transaction costs— 1 
Restructuring - 2024 Network Optimization2 19 
Adjusted$2,200 56.1 %$970 24.7 %
Impact of foreign currency— %— %
Constant currency adjusted56.1 %24.7 %
For the Second Quarter of 2023
Reported$2,041 53.9 %$769 20.3 %
Items Affecting Comparability:
Mark to market9 4 
Amortization of intangibles— 35 
Stock compensation— 4 
Productivity26 58 
Non-routine legal matters— 3 
Adjusted$2,076 54.8 %$873 23.0 %
Refer to pages A-8 and A-9 for reconciliations of reported net sales to constant currency net sales and adjusted income from operations to constant currency adjusted income from operations.
A-6
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN NON-GAAP INFORMATION
(UNAUDITED)
Interest expense, netIncome before provision for income taxesProvision for income taxesEffective tax rateNet incomeDiluted earnings per share
For the Second Quarter of 2024
Reported$204 $672 $157 23.4 %$515 $0.38 
Items Affecting Comparability:
Mark to market(32)22 4 18 0.01 
Amortization of intangibles— 34 8 26 0.02 
Amortization of deferred financing costs(1)1 — 1 — 
Amortization of fair value debt adjustment(3)3 — 3 — 
Stock compensation— 3 1 2 — 
Restructuring - 2023 CEO Succession and Associated Realignment— 11 2 9 0.01 
Productivity— 45 10 35 0.03 
Non-routine legal matters— 1 1 — — 
Transaction costs— 1 1 — — 
Restructuring - 2024 Network Optimization— 19 4 15 0.01 
Change in deferred tax liabilities related to goodwill and other intangible assets— — 6 (6)— 
Adjusted$168 $812 $194 23.9 %$618 $0.45 
Impact of foreign currency0.2 %
Constant currency adjusted24.1 %
For the Second Quarter of 2023
Reported$172 $613 $110 17.9 %$503 $0.36 
Items Affecting Comparability:
Mark to market(53)48 15 33 0.02 
Amortization of intangibles— 35 6 29 0.02 
Amortization of deferred financing costs(1)1 — 1 — 
Amortization of fair value of debt adjustment(5)5 1 4 — 
Stock compensation— 4 1 3 — 
Productivity— 58 12 46 0.03 
Non-routine legal matters— 3 1 2 — 
Change in deferred tax liabilities related to goodwill and other intangible assets— — 25 (25)(0.02)
Adjusted$113 $767 $171 22.3 %$596 $0.42 
Change - adjusted48.7 %3.7 %7.1 %
Impact of foreign currency— %(0.5)%— %
Change - constant currency adjusted48.7 %3.2 %7.1 %
Diluted earnings per common share may not foot due to rounding.
A-7
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN FINANCIAL MEASURES BY SEGMENT TO CONSTANT CURRENCY
ADJUSTED FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)
U.S. Refreshment BeveragesU.S. CoffeeInternationalUnallocated corporate costsTotal
For the Second Quarter of 2024
Reported - Income from Operations$717 $228 $150 $(234)$861 
Items Affecting Comparability:
Mark to market— — (1)(4)(5)
Amortization of intangibles5 26 3 — 34 
Stock compensation— — — 3 3 
Restructuring - 2023 CEO Succession and Associated Realignment— — — 11 11 
Productivity1 20 — 24 45 
Non-routine legal matters— — — 1 1 
Transaction costs— — — 1 1 
Restructuring - 2024 Network Optimization— 19 — — 19 
Adjusted - Income from Operations$723 $293 $152 $(198)$970 
Change - adjusted11.9 %0.3 %31.0 %9.4 %11.1 %
Impact of foreign currency— %— %(0.8)%— %(0.1)%
Change - constant currency adjusted11.9 %0.3 %30.2 %9.4 %11.0 %
For the Second Quarter of 2023
Reported - Income from Operations$629 $250 $112 $(222)$769 
Items Affecting Comparability:
Mark to market— — — 4 4 
Amortization of intangibles6 25 4 — 35 
Stock compensation— — — 4 4 
Productivity11 17 — 30 58 
Non-routine legal matters— — — 3 3 
Adjusted - Income from Operations$646 $292 $116 $(181)$873 
A-8
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN FINANCIAL MEASURES BY SEGMENT TO CONSTANT CURRENCY
ADJUSTED FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)
ReportedImpact of Foreign CurrencyConstant Currency
For the second quarter of 2024
Net sales
U.S. Refreshment Beverages3.3 %— %3.3 %
U.S. Coffee(2.1)— (2.1)
International15.5 (0.8)14.7 
Total net sales3.5 (0.1)3.4 
ReportedItems Affecting ComparabilityAdjustedImpact of Foreign CurrencyConstant Currency Adjusted
For the second quarter of 2024
Operating margin
U.S. Refreshment Beverages29.8 %0.2 %30.0 %— %30.0 %
U.S. Coffee24.0 6.8 30.8 — 30.8 
International26.5 0.4 26.9 — 26.9 
Total operating margin22.0 2.7 24.7 — 24.7 
ReportedItems Affecting ComparabilityAdjusted
For the second quarter of 2023
Operating margin
U.S. Refreshment Beverages27.0 %0.7 %27.7 %
U.S. Coffee25.8 4.3 30.1 
International22.9 0.8 23.7 
Total operating margin20.3 2.7 23.0 
A-9
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN NON-GAAP INFORMATION
(UNAUDITED)
Gross profitGross marginIncome from operationsOperating margin
For the First Six Months of 2024
Reported$4,112 55.6 %$1,626 22.0 %
Items Affecting Comparability:
Mark to market3 (24)
Amortization of intangibles— 67 
Stock compensation— 7 
Restructuring - 2023 CEO Succession and Associated Realignment— 13 
Productivity34 81 
Non-routine legal matters— 2 
Transaction costs— 2 
Restructuring - 2024 Network Optimization2 21 
Adjusted$4,151 56.2 %$1,795 24.3 %
Impact of foreign currency— %— %
Constant currency adjusted56.2 %24.3 %
For the First Six Months of 2023
Reported$3,785 53.0 %$1,353 18.9 %
Items Affecting Comparability:
Mark to market(5)2 
Amortization of intangibles— 69 
Stock compensation— 9 
Productivity64 136 
Non-routine legal matters— 3 
Adjusted$3,844 53.8 %$1,572 22.0 %


Refer to pages A-12 and A-13 for reconciliations of reported net sales to constant currency net sales and adjusted income from operations to constant currency adjusted income from operations.
A-10
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN NON-GAAP INFORMATION
(UNAUDITED)
Interest expense, netIncome before provision for income taxesProvision for income taxesEffective tax rateNet incomeDiluted earnings per share
For the First Six Months of 2024
Reported$382 $1,266 $297 23.5 %$969 $0.70 
Items Affecting Comparability:
Mark to market(67)40 6 34 0.02 
Amortization of intangibles— 67 17 50 0.04 
Amortization of deferred financing costs(1)1 — 1 — 
Amortization of fair value debt adjustment(7)7 1 6 — 
Stock compensation— 7 2 5 — 
Restructuring - 2023 CEO Succession and Associated Realignment— 13 3 10 0.01 
Productivity— 81 20 61 0.04 
Non-routine legal matters— 2 1 1 — 
Transaction costs— 2 1 1 — 
Restructuring - 2024 Network Optimization— 21 5 16 0.01 
Change in deferred tax liabilities related to goodwill and other intangible assets— — 6 (6)— 
Adjusted$307 $1,507 $359 23.8 %$1,148 $0.84 
Impact of foreign currency0.1 %
Constant currency adjusted23.9 %
For the First Six Months of 2023
Reported$195 $1,194 $224 18.8 %$970 $0.69 
Items Affecting Comparability:
Mark to market40 (56)(14)(42)(0.03)
Amortization of intangibles— 69 16 53 0.04 
Amortization of deferred financing costs(1)1 — 1 — 
Amortization of fair value of debt adjustment(9)9 2 7 0.01 
Stock compensation— 9 3 6 — 
Productivity— 136 33 103 0.07 
Non-routine legal matters— 3 1 2 — 
Change in deferred tax liabilities related to goodwill and other intangible assets— — 25 (25)(0.02)
Adjusted$225 $1,365 $290 21.2 %$1,075 $0.76 
Change - adjusted36.4 %6.8 %10.5 %
Impact of foreign currency— %(0.6)%(1.3)%
Change - Constant currency adjusted36.4 %6.2 %9.2 %
Diluted earnings per common share may not foot due to rounding.
A-11
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN FINANCIAL MEASURES BY SEGMENT TO CONSTANT CURRENCY
ADJUSTED FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)
U.S. Refreshment BeveragesU.S. CoffeeInternationalUnallocated corporate costsTotal
For the First Six Months of 2024
Reported - Income from Operations$1,332 $476 $262 $(444)$1,626 
Items Affecting Comparability:
Mark to market— — (7)(17)(24)
Amortization of intangibles10 51 6 — 67 
Stock compensation— — — 7 7 
Restructuring - 2023 CEO Succession and Associated Realignment— — — 13 13 
Productivity3 34 — 44 81 
Non-routine legal matters— — — 2 2 
Transaction costs— — — 2 2 
Restructuring - 2024 Network Optimization— 21 — — 21 
Adjusted - Income from Operations$1,345 $582 $261 $(393)$1,795 
Change - adjusted16.6 %0.9 %30.5 %9.5 %14.2 %
Impact of foreign currency— %— %(2.5)%— %(0.3)%
Change - constant currency adjusted16.6 %0.9 %28.0 %9.5 %13.9 %
For the First Six Months of 2023
Reported - Income from Operations$1,119 $482 $192 $(440)$1,353 
Items Affecting Comparability:
Mark to market— — — 2 2 
Amortization of intangibles10 51 8 — 69 
Stock compensation— — — 9 9 
Productivity25 44 — 67 136 
Non-routine legal matters— — — 3 3 
Adjusted - Income from Operations$1,154 $577 $200 $(359)$1,572 
A-12
KEURIG DR PEPPER INC.
RECONCILIATION OF CERTAIN FINANCIAL MEASURES BY SEGMENT TO CONSTANT CURRENCY ADJUSTED FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)
ReportedImpact of Foreign CurrencyConstant Currency
For the first six months of 2024:
Net sales
U.S. Refreshment Beverages3.8 %— %3.8 %
U.S. Coffee(2.1)— (2.1)
International13.8 (2.6)11.2 
Total net sales3.5 (0.4)3.1 
ReportedItems Affecting ComparabilityAdjustedImpact of Foreign CurrencyConstant Currency Adjusted
For the first six months of 2024:
Operating margin
U.S. Refreshment Beverages29.6 %0.3 %29.9 %— %29.9 %
U.S. Coffee25.6 5.7 31.3 — 31.3 
International25.5 (0.1)25.4 0.1 25.5 
Total operating margin22.0 2.3 24.3 — 24.3 
ReportedItems Affecting ComparabilityAdjusted
For the first six months of 2023:
Operating margin
U.S. Refreshment Beverages25.8 %0.8 %26.6 %
U.S. Coffee25.4 5.0 30.4 
International21.2 0.9 22.1 
Total operating margin18.9 3.1 22.0 
A-13
KEURIG DR PEPPER INC.
RECONCILIATION OF ADJUSTED EBITDA AND MANAGEMENT LEVERAGE RATIO
(UNAUDITED)
(in millions, except for ratio)
ADJUSTED EBITDA RECONCILIATION - LAST TWELVE MONTHS
Net income$2,180 
Interest expense, net683 
Provision for income taxes649 
Depreciation expense408 
Other amortization191 
Amortization of intangibles135 
EBITDA$4,246 
Items affecting comparability:
Impairment of intangible assets$2 
Restructuring - 2023 CEO Succession and Associated Realignment48 
Productivity172 
Restructuring - 2024 Network Optimization21 
Non-routine legal matters4 
Stock compensation15 
Transaction costs4 
Mark to market(19)
Adjusted EBITDA$4,493 
June 30,
2024
Principal amounts of:
Commercial paper notes$1,870 
Senior unsecured notes13,093 
Total principal amounts14,963 
Less: Cash and cash equivalents438 
Total principal amounts less cash and cash equivalents$14,525 
June 30, 2024 Management Leverage Ratio3.2 






A-14
KEURIG DR PEPPER INC.
RECONCILIATION OF ADJUSTED EBITDA - LAST TWELVE MONTHS
(UNAUDITED)

(in millions)THIRD QUARTER OF 2023FOURTH QUARTER OF 2023FIRST SIX MONTHS OF 2024LAST TWELVE MONTHS
Net income$518 $693 $969 $2,180 
Interest expense, net237 64 382 683 
Provision for income taxes146 206 297 649 
Depreciation expense98 103 207 408 
Other amortization45 45 101 191 
Amortization of intangibles34 34 67 135 
EBITDA$1,078 $1,145 $2,023 $4,246 
Items affecting comparability:
Impairment of intangible assets$2 $— $— $2 
Restructuring - 2023 CEO Succession and Associated Realignment27 8 13 48 
Productivity41 66 65 172 
Restructuring - 2024 Network Optimization— — 21 21 
Nonroutine legal matters2 — 2 4 
Stock compensation4 4 7 15 
Transaction costs1 1 2 4 
Mark to market(32)40 (27)(19)
Adjusted EBITDA$1,123 $1,264 $2,106 $4,493 
A-15
KEURIG DR PEPPER INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(UNAUDITED)



Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant and equipment, proceeds from sales of property, plant and equipment, and certain items excluded for comparison to prior year periods. For the second quarter of 2024 and 2023, there were no certain items excluded for comparison to prior year periods.
First Six Months
(in millions)20242023
Net cash provided by operating activities$742 $452 
Purchases of property, plant and equipment(273)(149)
Proceeds from sales of property, plant and equipment1 8 
Free Cash Flow$470 $311 

A-16
v3.24.2
Cover Document
Jul. 25, 2024
Cover [Abstract]  
Entity Central Index Key 0001418135
Entity Incorporation, State or Country Code DE
Document Type 8-K
Document Period End Date Jul. 25, 2024
Entity Registrant Name Keurig Dr Pepper Inc.
Entity File Number 001-33829
Entity Tax Identification Number 98-0517725
Entity Address, Address Line One 53 South Avenue
Entity Address, City or Town Burlington
Entity Address, State or Province MA
Entity Address, Postal Zip Code 01803
City Area Code 781
Local Phone Number 418-7000
Title of 12(b) Security Common stock
Trading Symbol KDP
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
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