Thu, Oct 24, 1:29 PM (70 days ago)
Keurig Dr Pepper Inc. (KDP) reported its Q3 2024 financial results, showing net sales of $3,891 million, up 2.3% year-over-year, driven by a 3.5% increase in sales volume. Gross profit rose to $2,140 million, reflecting a gross margin of 55.0%. SG&A expenses increased by 2.3% to $1,245 million, leading to an operating income of $902 million, up 0.7%. Net income surged 18.9% to $616 million, with diluted EPS rising 21.6% to $0.45. The U.S. Refreshment Beverages segment saw a 5.3% sales increase, while the U.S. Coffee segment experienced a 3.6% decline. The International segment's sales grew slightly by 0.4%. Interest expense significantly decreased by 55.3% to $106 million, enhancing profitability. KDP completed the Kalil Acquisition for $103 million, expanding its distribution capabilities. The company also increased its annual dividend by 7% to $0.92 per share. Cash flow from operations improved, but the cash conversion cycle lengthened due to reduced payment terms for suppliers. Overall, KDP's financial health remains robust, with strategic acquisitions and strong earnings growth.