Q2 2024 Keurig Dr Pepper Inc Earnings Call Transcript
Key Points
- Keurig Dr Pepper Inc (KDP) delivered healthy second quarter performance with a 3.4% constant currency net sales growth.
- The company achieved strong operating margin expansion and 7% EPS growth versus the prior year.
- Innovations such as Dr Pepper Creamy Coconut and Canada Dry Fruit Splash are driving improved share trends.
- New partnerships with brands like Electrolit and La Colombe are expected to contribute significantly to revenue growth in the second half of the year.
- International segment showed impressive performance with double-digit constant currency growth in both top and bottom lines.
- The operating environment remains uneven with mixed consumer behavior, particularly among low and middle-income consumers.
- US coffee segment experienced a 2.1% decline in net sales, with ongoing muted performance expected for the rest of the year.
- Still beverages and energy categories are facing more pronounced macroeconomic impacts, leading to softer category growth rates.
- Green coffee prices are rising, creating a headwind for the second half of the year.
- The promotional environment in the single-serve coffee category is at odds with significant green coffee inflation, posing challenges for pricing strategy.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Keurig Dr Pepper's second quarter 2024 earnings call. (Operator Instructions) This conference is being recorded, and there will be a question and answer session at the end of the call.
I would now like to introduce Keurig Dr Pepper's Vice President of Investor Relations, Jane Gelfand. Ms. Gelfand, please go ahead.
Thank you, and hello, everyone. Earlier this morning we issued a press release detailing our second quarter results, which we will discuss during this conference call. A slide presentation will accompany our remarks and can be viewed in realtime on the live webcast.
Before we get started, I'd like to remind you that our remarks will include forward-looking statements, which reflect KDPs judgment, assumptions and analysis only as of today. Our actual results may differ materially from current expectations based on a number of factors affecting KDPs business.
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