BURLINGTON, Mass. and
PLANO, Texas, April 27, 2020 /PRNewswire/ -- Keurig Dr
Pepper Inc. (NYSE: KDP) today reported strong financial results for
the first quarter ended March 31,
2020. Net sales in the first quarter of 2020 increased 4.4%
to $2.61 billion, compared to
$2.50 billion in the year-ago period,
reflecting growth in all four reporting segments. On a
constant currency basis, net sales increased 4.5%.
On a GAAP basis, diluted earnings per share in the first quarter
of 2020 decreased to $0.11, compared
to $0.16 in the year-ago
period. Excluding items affecting comparability1,
Adjusted diluted EPS advanced 16% to $0.29, compared to $0.25 in the year-ago period.
As previously announced, earlier this month the Company
completed a strategic refinancing that extended its debt maturities
and enhanced its liquidity profile, including a $1.5 billion senior notes issuance and the
refinancing and upsizing of its 364-day revolving credit facility.
The refinancing, which did not change the Company's total
debt balance or deleveraging commitments, increased KDP's liquidity
to a level that the Company believes will exceed its liquidity
needs, even in the event of a protracted downturn.
Commenting on the announcement, Chairman and CEO Bob Gamgort stated, "We delivered Q1 performance
in line with our long-term targets, building on the business
strength demonstrated since our merger in mid-2018 and setting us
up for a strong 2020. However, we are now operating in a
distinctly different environment that has required us to pivot
significantly. The extraordinary steps we've taken to keep our
teams safe and working, coupled with our broad portfolio and seven
distinct routes to market, position us to continue to successfully
navigate this unprecedented time. I recognize the significant
role KDP employees are playing in our future success, and I can't
thank them enough for their tireless efforts to ensure we continue
to meet the needs of our customers and consumers. Finally,
while the timing of the macroeconomic recovery remains uncertain,
we remain confident in our ability to deliver the guidance we
reaffirmed today, particularly our Adjusted EPS and deleveraging
commitments."
First Quarter Consolidated Results
Net sales for the
first quarter of 2020 increased 4.4% to $2.61 billion, compared to $2.50 billion in the year-ago period. On a
constant currency basis, net sales advanced 4.5%, reflecting strong
volume/mix growth of 5.0%, partially offset by lower net price
realization of 0.5%. The volume/mix growth reflected particular
strength in the Packaged Beverages segment, which included a
benefit from the impact of COVID-19 late in the quarter,
partially offset by slowdowns in the fountain foodservice business
in the Beverage Concentrates segment and the away-from-home
business in the Coffee Systems segment, both of which experienced
an unfavorable impact from COVID-19 late in the
quarter.
KDP in-market performance2 was very strong in the
first quarter of 2020, with market share advancing in the majority
of the Company's key categories, including CSDs3,
premium unflavored water, shelf stable fruit drinks and shelf
stable apple juice and apple sauce. This performance reflected the
strength of Dr Pepper and Canada Dry CSDs, CORE hydration and evian
premium water, Snapple juice drinks and Motts apple juice and apple
sauce. In coffee, retail consumption of single-serve pods
manufactured by KDP grew over 6% in IRi tracked channels with
dollar market share of KDP manufactured pods remaining strong at
81.0%.
Operating income decreased 6.4% to $466
million in the first quarter of 2020, compared to
$498 million in the year-ago period,
largely reflecting the unfavorable year-over-year impact of items
affecting comparability, which includes an $86 million non-cash impairment charge on an
equity investment. Also impacting the quarter was inflation,
primarily in input costs and logistics, higher operating costs
associated with increased consumer demand, tariffs, and the
unfavorable comparison to a $10
million gain on the renegotiation of a manufacturing
contract in the prior year. Partially offsetting these drivers were
the benefits of productivity and merger synergies, which impacted
both SG&A and cost of sales, the strong growth in net sales and
a network optimization program gain of $42
million on the asset sale-leaseback of four facilities.
Excluding items affecting comparability, Adjusted operating income
increased 10.1% to $684 million,
compared to $621 million in the
year-ago period, and Adjusted operating margin advanced 140 basis
points to 26.2%. On a constant currency basis, Adjusted
operating income grew 10.5%.
Net income decreased 32% to $156
million, or $0.11 per diluted
share, in the first quarter of 2020, compared to $230 million, or $0.16 per diluted share, in the year-ago period,
meaningfully impacted by items affecting comparability.
Excluding these items, Adjusted net income advanced 13% to
$408 million in the first quarter of
2020, compared to $362 million in the
year-ago period. This performance reflected the strong growth in
Adjusted operating income, a lower Adjusted effective tax rate and
lower Adjusted interest expense due to continued deleveraging,
partially offset by a smaller gain in 2020 totaling $20 million from unwinding interest rate swap
contracts versus the $27 million gain
recorded in 2019. Adjusted diluted EPS advanced 16% to
$0.29, compared to $0.25 in the year-ago period.
The Company generated strong free cash flow of approximately
$464 million in the first quarter of
2020, enabling KDP to reduce bank debt by $42 million and repay $107
million of structured payables.
The Company's management leverage ratio declined from 4.5x at
year-end 2019 to 4.2x at the end of the first quarter of 2020,
reflecting lower outstanding indebtedness and continued growth in
Adjusted EBITDA, including the permanent benefit of adding certain
amortization expenses not previously incorporated in the
calculation of Adjusted EBITDA.
1
|
Adjusted financial
metrics used in this release are non-GAAP. See reconciliations of
GAAP results to Adjusted results in the accompanying
tables.
|
2
|
In-market performance
(retail consumption; market share) based on Keurig Dr Pepper's
custom IRi category definitions.
|
3
|
CSD refers to
"Carbonated Soft Drink".
|
First Quarter Segment Results
Coffee Systems
Net sales for the first quarter
of 2020 increased 0.5% to $973
million, compared to $968
million in the year-ago period, reflecting higher volume/mix
of 3.7% and favorable foreign currency translation of 0.1%,
partially offset by lower net price realization of 3.3% resulting
from strategic price investments. The volume/mix increase of 3.7%
reflected strong pod volume growth of 5.6%, despite a significant
decline late in the quarter in the away-from-home coffee business
due to both office closures and hospitality slowdown caused by
COVID-19. Brewer volume declined 2.4% in the quarter,
reflecting comparison to the double-digit growth recorded in the
year-ago period, as well as the expected shift of brewer shipments
from the first quarter to later in the year as a result of the
timing impact of COVID-19 on brewer supply from certain regions in
Asia.
Operating income declined 7.2% to $272
million in the first quarter of 2020, compared to
$293 million in the year-ago period,
reflecting the unfavorable year-over-year impact of items affecting
comparability, strategic pricing, tariffs, and an increase in other
operating costs. Partially offsetting these drivers were the
benefits of continued productivity and merger synergies, a network
optimization program gain of $16
million on the asset sale-leaseback of a manufacturing
facility and the strong pod volume growth. Excluding items
affecting comparability, Adjusted operating income in the quarter
increased 3.6% to $347 million,
compared to $335 million in the
year-ago period, and Adjusted operating margin advanced 110 basis
points to 35.7%.
Packaged Beverages
Net sales for the first
quarter of 2020 advanced 9.1% to $1.22
billion, compared to $1.12
billion in the year-ago period, reflecting strong volume/mix
growth of 8.7% and higher net price realization of 0.4%. The
increase in volume/mix reflected strength in premium water,
carbonated soft drinks, juice and apple sauce, partially driven by
heightened consumer demand due to stock-up behavior late in the
quarter related to COVID-19. Driving the net sales
performance in the quarter were evian, Dr Pepper, Motts, Canada
Dry, Core, A Shoc, A&W, 7UP and Squirt, as well as increased
contract manufacturing.
Operating income increased approximately 27% to $189 million in the first quarter of 2020,
compared to $149 million in the
year-ago period, reflecting the strong net sales growth, continued
productivity and merger synergies, and a network optimization
program gain of $26 million on the
asset sale-leaseback of three facilities. These growth drivers were
partially offset by higher manufacturing costs to meet the surge in
consumer demand late in the quarter, inflation in packaging, labor
and logistics costs, the unfavorable comparison versus year-ago of
a $10 million gain related to the
renegotiation of a manufacturing contract, and an increase in other
operating costs. Also impacting the comparison was a slight
year-over-year impact of items affecting comparability. Excluding
these items, Adjusted operating income increased 27% to
$203 million, compared to
$160 million in the year-ago period
and Adjusted operating margin advanced 240 basis points to 16.7% of
net sales.
Beverage Concentrates
Net sales for the first
quarter of 2020 increased 0.7% to $306
million, compared to $304
million in the year-ago period, reflecting higher net price
realization of 2.4%, partially offset by unfavorable volume/mix of
1.7%. The volume/mix decline reflected a significant channel shift
away from on-premise business, which is shipped directly, as demand
dropped off quickly late in the quarter due to COVID-19, partially
offset by a slower build of the at-home business, as inventories in
the Company's partner bottling network were worked down.
Dr Pepper continued to demonstrate net sales strength in the
quarter, partially offset by Crush. Shipment volume versus
year-ago declined 2.4% in the first quarter of 2020, reflecting an
immediate impact of COVID-19 on the fountain
foodservice business late in the quarter, partially offset by
growth in concentrate shipment volume for retail product.
Bottler case sales increased 1.0% in the first quarter of
2020.
Operating income decreased 2.0% to $197
million in the first quarter of 2020, compared to
$201 million in the year-ago period,
reflecting the benefit of the net sales growth which was more than
offset by higher marketing investments in the quarter. Operating
margin decreased 170 basis points versus year-ago to
64.4%.
Latin America Beverages
Net sales for the first
quarter of 2020 increased 0.9% to $117
million, compared to net sales of $116 million in the year-ago period, reflecting
higher net price realization of 5.9% partially offset by
unfavorable volume/mix of 0.7% and unfavorable foreign currency
translation of 4.3%. On a constant currency basis, net sales
increased 5.2% in the quarter.
Operating income increased to $27
million in the first quarter of 2020, compared to
$11 million in the year-ago period,
reflecting a favorable foreign currency transaction impact, the net
sales growth, continued productivity and a modest year-over year
benefit from items affecting comparability. Partially offsetting
these growth drivers were inflation in input costs, manufacturing
and logistics. Excluding items affecting comparability,
Adjusted operating income more than doubled in the first quarter of
2020 to $27 million, compared to
$12 million in the year-ago period,
resulting in Adjusted operating margin advancing 1,280 basis points
versus year-ago to 23.1%.
KDP Outlook for 2020
The impacts and volatility of
COVID-19 are expected to be significant in 2020, and the timing and
pacing of re-opening the economy and ultimately transitioning into
what is likely to be a new normal are highly uncertain.
Nevertheless, given the Company's broad portfolio and unmatched
distribution network that spans seven distinct routes to market,
KDP is reaffirming its guidance for 2020.
Specifically, for the full-year 2020, KDP expects constant
currency net sales growth in the range of 3% to 4%, with
performance likely at the low end of the range. The
Company expects full-year 2020 Adjusted diluted EPS growth in the
range of 13% to 15%, or $1.38 to
$1.40 per diluted share, given the
significant visibility and control the Company maintains over its
cost structure, including aggressive cost management, productivity
programs and merger synergies. As such, the Company continues
to expect its management leverage ratio in the range of 3.5x to
3.8x at year end 2020 and its management leverage ratio to be below
3.0x in two to three years from the July
2018 merger closing.
Investor Contacts:
Tyson
Seely
Keurig Dr Pepper
T: 781-418-3352 / tyson.seely@kdrp.com
Steve Alexander
Keurig Dr Pepper
T: 972-673-6769 / steve.alexander@kdrp.com
Media Contact:
Katie
Gilroy
Keurig Dr Pepper
T: 781-418-3345 / katie.gilroy@kdrp.com
About Keurig Dr Pepper
Keurig Dr Pepper (KDP) is a leading beverage company in
North America, with annual revenue
in excess of $11 billion and nearly
26,000 employees. KDP holds leadership positions in soft drinks,
specialty coffee and tea, water, juice and juice drinks and mixers,
and markets the #1 single serve coffee brewing system in the U.S.
and Canada. The Company's
portfolio of more than 125 owned, licensed and partner brands is
designed to satisfy virtually any consumer need, any time, and
includes Keurig®, Dr Pepper®, Green Mountain Coffee Roasters®,
Canada Dry®, Snapple®, Bai®, Mott's®, CORE® and The Original Donut
Shop®. Through its powerful sales and distribution network, KDP can
deliver its portfolio of hot and cold beverages to nearly every
point of purchase for consumers. The Company is committed to
sourcing, producing and distributing its beverages responsibly
through its Drink Well. Do Good. corporate responsibility platform,
including efforts around circular packaging, efficient natural
resource use and supply chain sustainability. For more
information, visit, www.keurigdrpepper.com.
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," "expect,"
"believe," "could," "estimate," "feel," "forecast," "intend,"
"may," "plan," "potential," "project," "should," "target," "will,"
"would," and similar words, phrases or expressions and variations
or negatives of these words, although not all forward-looking
statements contain these identifying words. Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain, such as statements regarding the estimated or
anticipated future results of the combined company following the
combination of Keurig Green Mountain, Inc. ("KGM") and Dr Pepper
Snapple Group, Inc. ("DPSG" and such combination, the
"transaction"), the anticipated benefits of the transaction,
including estimated synergies and cost savings, the long-term
merger targets, and other statements that are not historical facts.
These statements are based on the current expectations of our
management and are not predictions of actual performance.
These forward-looking statements are subject to a number of
risks and uncertainties regarding the company's business and the
transaction and actual results may differ materially. These risks
and uncertainties include, but are not limited to: (i) the impact
the significant additional debt incurred in connection with the
transaction may have on our ability to operate our business, (ii)
risks relating to the integration of the KGM and DPS operations,
products and employees into the combined company and assumption of
certain potential liabilities of KGM and the possibility that the
anticipated synergies and other benefits of the transaction,
including cost savings, will not be realized or will not be
realized within the expected timeframe, (iii) the impact of the
global COVID-19 pandemic, and (iv) risks relating to the businesses
and the industries in which our combined company operates. These
risks and uncertainties, as well as other risks and uncertainties,
are more fully discussed in the Company's filings with the SEC,
including our Annual Report on Form 10-K filed with the SEC on
February 27, 2020, and our subsequent
filings with the SEC. While the lists of risk factors presented
here and in our public filings are considered representative, no
such list should be considered to be a complete statement of all
potential risks and uncertainties. Any forward-looking statement
made herein speaks only as of the date of this document. We are
under no obligation to, and expressly disclaim any obligation to,
update or alter any forward-looking statements, whether as a result
of new information, subsequent events or otherwise, except as
required by applicable laws or regulations.
NON-GAAP FINANCIAL MEASURES
This release includes
certain non-GAAP financial measures including Adjusted operating
income, Adjusted net income, Adjusted diluted EPS and Free
Cash Flow, which differ from results using U.S. Generally Accepted
Accounting Principles (GAAP). These non-GAAP financial measures
should be considered as supplements to the GAAP reported measures,
should not be considered replacements for, or superior to, the GAAP
measures and may not be comparable to similarly named measures used
by other companies. Non-GAAP financial measures typically exclude
certain charges, including one-time costs related to the
transaction and integration activities, which are not expected to
occur routinely in future periods. The Company uses non-GAAP
financial measures internally to focus management on performance
excluding these special charges to gauge our business operating
performance. Management believes this information is helpful to
investors because it increases transparency and assists investors
in understanding the underlying performance of the Company and in
the analysis of ongoing operating trends. Additionally, management
believes that non-GAAP financial measures are frequently used by
analysts and investors in their evaluation of companies, and its
continued inclusion provides consistency in financial reporting and
enables analysts and investors to perform meaningful comparisons of
past, present and future operating results. The most directly
comparable GAAP financial measures and reconciliations to non-GAAP
financial measures are set forth in the appendix to this release
and included in the Company's filings with the SEC.
To the extent that the Company provides guidance, it does so
only on a non-GAAP basis and does not provide reconciliations of
such forward-looking non-GAAP measures to GAAP 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.
KEURIG DR PEPPER
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
For the First
Quarter of 2020 and 2019
|
(Unaudited, in
millions, except per share data)
|
|
|
First
Quarter
|
(in millions,
except per share data)
|
2020
|
|
2019
|
Net
sales
|
$
|
2,613
|
|
|
$
|
2,504
|
|
Cost of
sales
|
1,161
|
|
|
1,106
|
|
Gross
profit
|
1,452
|
|
|
1,398
|
|
Selling, general and
administrative expenses
|
1,028
|
|
|
911
|
|
Other operating
income, net
|
(42)
|
|
|
(11)
|
|
Income from
operations
|
466
|
|
|
498
|
|
Interest
expense
|
153
|
|
|
169
|
|
Loss on early
extinguishment of debt
|
2
|
|
|
9
|
|
Impairment on
investment and note receivable
|
86
|
|
|
—
|
|
Other expense,
net
|
20
|
|
|
5
|
|
Income before
provision for income taxes
|
205
|
|
|
315
|
|
Provision for income
taxes
|
49
|
|
|
85
|
|
Net
income
|
$
|
156
|
|
|
$
|
230
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
Basic
|
$
|
0.11
|
|
|
$
|
0.16
|
|
Diluted
|
0.11
|
|
|
0.16
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
1,407.0
|
|
|
1,406.3
|
|
Diluted
|
1,420.1
|
|
|
1,417.7
|
|
KEURIG DR PEPPER
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
As of March 31,
2020 and December 31, 2019
|
(Unaudited, in
millions, except shares and per share data)
|
|
|
March
31,
|
|
December
31,
|
(in millions,
except share and per share data)
|
2020
|
|
2019
|
Assets
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
197
|
|
|
$
|
75
|
|
Restricted cash and
restricted cash equivalents
|
26
|
|
|
26
|
|
Trade accounts
receivable, net
|
1,037
|
|
|
1,115
|
|
Inventories
|
682
|
|
|
654
|
|
Prepaid expenses and
other current assets
|
335
|
|
|
403
|
|
Total current
assets
|
2,277
|
|
|
2,273
|
|
Property, plant and
equipment, net
|
2,017
|
|
|
2,028
|
|
Investments in
unconsolidated affiliates
|
105
|
|
|
151
|
|
Goodwill
|
19,898
|
|
|
20,172
|
|
Other intangible
assets, net
|
23,706
|
|
|
24,117
|
|
Other non-current
assets
|
811
|
|
|
748
|
|
Deferred tax
assets
|
29
|
|
|
29
|
|
Total
assets
|
$
|
48,843
|
|
|
$
|
49,518
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
3,238
|
|
|
$
|
3,176
|
|
Accrued
expenses
|
960
|
|
|
939
|
|
Structured
payables
|
258
|
|
|
321
|
|
Short-term borrowings
and current portion of long-term obligations
|
1,957
|
|
|
1,593
|
|
Other current
liabilities
|
445
|
|
|
445
|
|
Total current
liabilities
|
6,858
|
|
|
6,474
|
|
Long-term
obligations
|
12,431
|
|
|
12,827
|
|
Deferred tax
liabilities
|
5,917
|
|
|
6,030
|
|
Other non-current
liabilities
|
997
|
|
|
930
|
|
Total
liabilities
|
26,203
|
|
|
26,261
|
|
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, 1,407,079,951 and
1,406,852,305 shares issued and outstanding as of March 31, 2020
and December 31, 2019, respectively
|
14
|
|
|
14
|
|
Additional paid-in
capital
|
21,579
|
|
|
21,557
|
|
Retained
earnings
|
1,527
|
|
|
1,582
|
|
Accumulated other
comprehensive (income) loss
|
(480)
|
|
|
104
|
|
Total stockholders'
equity
|
22,640
|
|
|
23,257
|
|
Total liabilities
and stockholders' equity
|
$
|
48,843
|
|
|
$
|
49,518
|
|
KEURIG DR PEPPER
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
For
The First Quarter of 2020 and
2019
|
(Unaudited, in
millions)
|
|
|
First
Quarter
|
(in
millions)
|
2020
|
|
2019
|
Operating
activities:
|
|
|
|
Net income
|
$
|
156
|
|
|
$
|
230
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
expense
|
98
|
|
|
85
|
|
Amortization of
intangibles
|
33
|
|
|
31
|
|
Other amortization
expense
|
32
|
|
|
36
|
|
Provision for sales
returns
|
7
|
|
|
9
|
|
Deferred income
taxes
|
(5)
|
|
|
1
|
|
Employee stock based
compensation expense
|
19
|
|
|
14
|
|
Loss on early
extinguishment of debt
|
2
|
|
|
9
|
|
Gain on disposal of
property, plant and equipment
|
(43)
|
|
|
—
|
|
Unrealized loss
(gain) on foreign currency
|
22
|
|
|
(17)
|
|
Unrealized loss on
derivatives
|
43
|
|
|
7
|
|
Equity in losses of
unconsolidated affiliates
|
15
|
|
|
15
|
|
Impairment on
investment and note receivable of unconsolidated
affiliate
|
86
|
|
|
—
|
|
Other, net
|
22
|
|
|
(4)
|
|
Changes in assets and
liabilities, net of effects of acquisition:
|
|
|
|
Trade accounts
receivable
|
42
|
|
|
126
|
|
Inventories
|
(38)
|
|
|
(36)
|
|
Income taxes
receivable, prepaid and payables, net
|
(29)
|
|
|
68
|
|
Other current and non
current assets
|
(179)
|
|
|
(102)
|
|
Accounts payable and
accrued expenses
|
150
|
|
|
125
|
|
Other current and non
current liabilities
|
(19)
|
|
|
(6)
|
|
Net change in
operating assets and liabilities
|
(73)
|
|
|
175
|
|
Net cash provided by
operating activities
|
414
|
|
|
591
|
|
Investing
activities:
|
|
|
|
Issuance of related
party note receivable
|
(6)
|
|
|
(7)
|
|
Purchases of
property, plant and equipment
|
(151)
|
|
|
(62)
|
|
Proceeds from sales
of property, plant and equipment
|
201
|
|
|
18
|
|
Purchases of
intangibles
|
(15)
|
|
|
(2)
|
|
Other, net
|
5
|
|
|
8
|
|
Net cash provided by
(used in) investing activities
|
34
|
|
|
(45)
|
|
Financing
activities:
|
|
|
|
Proceeds from
unsecured credit facility
|
1,000
|
|
|
—
|
|
Proceeds from term
loan
|
—
|
|
|
2,000
|
|
Net (repayment)
issuance of commercial paper
|
(387)
|
|
|
594
|
|
Proceeds from
structured payables
|
44
|
|
|
78
|
|
Payments on
structured payables
|
(107)
|
|
|
(9)
|
|
Payments on senior
unsecured notes
|
(250)
|
|
|
(250)
|
|
Repayment of term
loan
|
(405)
|
|
|
(2,758)
|
|
Payments on finance
leases
|
(13)
|
|
|
(10)
|
|
Cash dividends
paid
|
(212)
|
|
|
(211)
|
|
Other, net
|
2
|
|
|
10
|
|
Net cash (used in)
financing activities
|
(328)
|
|
|
(556)
|
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents — net
change from:
|
|
|
|
Operating, investing
and financing activities
|
120
|
|
|
(10)
|
|
Effect of exchange
rate changes on cash, cash equivalents, restricted cash and
restricted cash equivalents
|
(8)
|
|
|
10
|
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents at
beginning of period
|
111
|
|
|
139
|
|
Cash, cash
equivalents, restricted cash and restricted cash equivalents at end
of period
|
$
|
223
|
|
|
$
|
139
|
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
SEGMENT INFORMATION
|
(Unaudited)
|
|
|
First
Quarter
|
(in
millions)
|
2020
|
|
2019
|
Net
Sales
|
|
|
|
Coffee
Systems
|
$
|
973
|
|
|
$
|
968
|
|
Packaged
Beverages
|
1,217
|
|
|
1,116
|
|
Beverage
Concentrates
|
306
|
|
|
304
|
|
Latin America
Beverages
|
117
|
|
|
116
|
|
Total net
sales
|
$
|
2,613
|
|
|
$
|
2,504
|
|
|
|
|
|
Income from
Operations
|
|
|
|
Coffee
Systems
|
$
|
272
|
|
|
$
|
293
|
|
Packaged
Beverages
|
189
|
|
|
149
|
|
Beverage
Concentrates
|
197
|
|
|
201
|
|
Latin America
Beverages
|
27
|
|
|
11
|
|
Unallocated corporate
costs
|
(219)
|
|
|
(156)
|
|
Total income from
operations
|
$
|
466
|
|
|
$
|
498
|
|
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.
For the first quarter of 2020 and 2019, we define our Adjusted
non-GAAP financial measures as certain financial statement captions
and metrics adjusted for certain items affecting comparability. The
items affecting comparability are defined below.
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
and do not have an offsetting risk reflected within the financial
results; (ii) the amortization associated with definite-lived
intangible assets; (iii) the amortization of the deferred financing
costs associated with the DPS Merger and Keurig Acquisition; (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 attributable to the matching awards made to
employees who made an initial investment in the Keurig Green
Mountain, Inc. Executive Ownership Plan, the Keurig Dr Pepper
Omnibus Incentive Plan of 2009 or the Keurig Dr Pepper Inc. Omnibus
Incentive Plan of 2019; and (vi) other certain items that are
excluded for comparison purposes to prior year periods.
Prior to the second quarter of 2019, we did not add back the
amortization of the fair value adjustment of the senior unsecured
debt recognized as a result of the purchase price allocation for
the DPS Merger. As this item is similar to the amortization of
intangibles, we changed our method of computing Adjusted results to
exclude the amortization of the fair value adjustment of the senior
unsecured notes in order to reflect how management views our
business results on a consistent basis.
For the first quarter of 2020, the other certain items excluded
for comparison purposes include (i) restructuring and integration
expenses related to the DPS Merger and the Keurig Acquisition; (ii)
productivity expenses; (iii) transaction costs for significant
business combinations (completed or abandoned) excluding the DPS
Merger; (iv) costs related to significant nonroutine legal matters;
(v) the loss on early extinguishment of debt related to the
redemption of debt; (vi) incremental costs to our operations
related to risks associated with the COVID-19 pandemic and (vii)
impairment recognized on equity method investment with Bedford
Systems, LLC.
Incremental costs to our operations related to risks associated
with the COVID-19 pandemic include incremental expenses incurred to
either maintain the health and safety of our front-line employees
or temporarily increase compensation to such employees to ensure
essential operations continue during the pandemic. We believe
removing these costs reflects how management views our business
results on a consistent basis.
For the first quarter of 2019, the other certain items excluded
for comparison purposes include (i) restructuring and integration
expenses related to the DPS Merger and the Keurig Acquisition; (ii)
productivity expenses; (iii) transaction costs for significant
business combinations (completed or abandoned) excluding the DPS
Merger; (iv) costs related to significant nonroutine legal matters;
(v) the impact of the step-up of acquired inventory not associated
with the DPS Merger (vi) the loss on early extinguishment of debt
related to the redemption of debt and (vii) the loss related to the
February 2019 organized malware
attack on our business operation networks in the Coffee Systems
segment.
For the first quarter of 2020 and 2019, the supplemental
financial data set forth below includes reconciliations of Adjusted
income from operations, Adjusted net income and Adjusted diluted
EPS to the applicable financial measure presented in the unaudited
condensed consolidated financial statement for the same period.
Reconciliations for these items are provided in the tables
below.
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN REPORTED ITEMS TO CERTAIN NON-GAAP ADJUSTED
ITEMS
|
For the First
Quarter Ended March 31, 2020
|
(Unaudited, in
millions, except per share data)
|
|
|
Cost of
sales
|
|
Gross
profit
|
|
Gross
margin
|
|
Selling,
general
and
administrative
expenses
|
|
Income from
operations
|
|
Operating
margin
|
Reported
|
$
|
1,161
|
|
|
$
|
1,452
|
|
|
55.6
|
%
|
|
$
|
1,028
|
|
|
$
|
466
|
|
|
17.8
|
%
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(15)
|
|
|
15
|
|
|
|
|
(43)
|
|
|
58
|
|
|
|
Amortization of
intangibles
|
—
|
|
|
—
|
|
|
|
|
(33)
|
|
|
33
|
|
|
|
Stock
compensation
|
—
|
|
|
—
|
|
|
|
|
(7)
|
|
|
7
|
|
|
|
Restructuring and
integration costs
|
—
|
|
|
—
|
|
|
|
|
(52)
|
|
|
52
|
|
|
|
Productivity
|
(16)
|
|
|
16
|
|
|
|
|
(38)
|
|
|
54
|
|
|
|
Nonroutine legal
matters
|
—
|
|
|
—
|
|
|
|
|
(9)
|
|
|
9
|
|
|
|
COVID-19
|
(1)
|
|
|
1
|
|
|
|
|
(4)
|
|
|
5
|
|
|
|
Adjusted
GAAP
|
$
|
1,129
|
|
|
$
|
1,484
|
|
|
56.8
|
%
|
|
$
|
842
|
|
|
$
|
684
|
|
|
26.2
|
%
|
|
Interest
expense
|
|
Loss on early
extinguishment
of debt
|
|
Impairment
on investment
and note
receivable
|
|
Income
before
provision for
income taxes
|
|
Provision for
income
taxes
|
|
Effective
tax rate
|
|
Net
income
|
|
Weighted
Average
Diluted
shares
|
|
Diluted
earnings
per share
|
Reported
|
$
|
153
|
|
|
$
|
2
|
|
|
$
|
86
|
|
|
$
|
205
|
|
|
$
|
49
|
|
|
23.9
|
%
|
|
$
|
156
|
|
|
1,420.1
|
|
$
|
0.11
|
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(24)
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
21
|
|
|
|
|
61
|
|
|
|
|
0.04
|
|
Amortization of
intangibles
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
9
|
|
|
|
|
24
|
|
|
|
|
0.02
|
|
Amortization of
deferred financing costs
|
(3)
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
—
|
|
Amortization of fair
value debt adjustment
|
(6)
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
2
|
|
|
|
|
4
|
|
|
|
|
—
|
|
Stock
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
|
|
6
|
|
|
|
|
—
|
|
Restructuring and
integration costs
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
14
|
|
|
|
|
38
|
|
|
|
|
0.03
|
|
Productivity
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
15
|
|
|
|
|
39
|
|
|
|
|
0.03
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
(2)
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
—
|
|
Impairment on
investment
|
—
|
|
|
—
|
|
|
(86)
|
|
|
86
|
|
|
21
|
|
|
|
|
65
|
|
|
|
|
0.05
|
|
Nonroutine legal
matters
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
2
|
|
|
|
|
7
|
|
|
|
|
—
|
|
COVID-19
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
—
|
|
Adjusted
GAAP
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
544
|
|
|
$
|
136
|
|
|
25.0
|
%
|
|
$
|
408
|
|
|
1,420.1
|
|
$
|
0.29
|
|
|
Diluted
earnings per common share may not foot due to
rounding.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
CERTAIN REPORTED ITEMS TO CERTAIN NON-GAAP ADJUSTED
ITEMS
|
For the First
Quarter Ended March 31, 2019
|
(Unaudited, in
millions, except per share data)
|
|
|
Cost of
sales
|
|
Gross
profit
|
|
Gross
margin
|
|
Selling, general
and
administrative
expenses
|
|
Income from
operations
|
|
Operating
margin
|
Reported
|
$
|
1,106
|
|
|
$
|
1,398
|
|
|
55.8
|
%
|
|
$
|
911
|
|
|
$
|
498
|
|
|
19.9
|
%
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(12)
|
|
|
12
|
|
|
|
|
12
|
|
|
—
|
|
|
|
Amortization of
intangibles
|
—
|
|
|
—
|
|
|
|
|
(31)
|
|
|
31
|
|
|
|
Stock
compensation
|
—
|
|
|
—
|
|
|
|
|
(7)
|
|
|
7
|
|
|
|
Restructuring and
integration costs
|
(1)
|
|
|
1
|
|
|
|
|
(60)
|
|
|
61
|
|
|
|
Productivity
|
(3)
|
|
|
3
|
|
|
|
|
(6)
|
|
|
9
|
|
|
|
Nonroutine legal
matters
|
—
|
|
|
—
|
|
|
|
|
(7)
|
|
|
7
|
|
|
|
Inventory
step-up
|
(3)
|
|
|
3
|
|
|
|
|
—
|
|
|
3
|
|
|
|
Malware
incident
|
(2)
|
|
|
2
|
|
|
|
|
(3)
|
|
|
5
|
|
|
|
Adjusted
GAAP
|
$
|
1,085
|
|
|
$
|
1,419
|
|
|
56.7
|
%
|
|
$
|
809
|
|
|
$
|
621
|
|
|
24.8
|
%
|
|
Interest
expense
|
|
Loss on early
extinguishment
of debt
|
|
Other
expense
(income),
net
|
|
Income before
provision for
income taxes
|
|
Provision
for
income
taxes
|
|
Effective
tax rate
|
|
Net
income
|
|
Weighted
Average
Diluted
shares
|
|
Diluted
earnings
per share
|
Reported
|
$
|
169
|
|
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
315
|
|
|
$
|
85
|
|
|
27.0
|
%
|
|
$
|
230
|
|
|
1,417.7
|
|
$
|
0.16
|
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(29)
|
|
|
—
|
|
|
2
|
|
|
27
|
|
|
7
|
|
|
|
|
20
|
|
|
|
|
0.01
|
|
Amortization of
intangibles
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
8
|
|
|
|
|
23
|
|
|
|
|
0.02
|
|
Amortization of
deferred financing costs
|
(4)
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
—
|
|
Amortization of fair
value debt adjustment
|
(7)
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
1
|
|
|
|
|
6
|
|
|
|
|
—
|
|
Stock
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
|
|
5
|
|
|
|
|
—
|
|
Restructuring and
integration costs
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
15
|
|
|
|
|
46
|
|
|
|
|
0.03
|
|
Productivity
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
2
|
|
|
|
|
7
|
|
|
|
|
—
|
|
Transaction
costs
|
(5)
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
—
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
(9)
|
|
|
—
|
|
|
9
|
|
|
2
|
|
|
|
|
7
|
|
|
|
|
—
|
|
Nonroutine legal
matters
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
|
|
5
|
|
|
|
|
—
|
|
Inventory
step-up
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
—
|
|
Malware
incident
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
—
|
|
Adjusted
GAAP
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
490
|
|
|
$
|
128
|
|
|
26.1
|
%
|
|
$
|
362
|
|
|
1,417.7
|
|
$
|
0.25
|
|
|
Diluted
earnings per common share may not foot due to
rounding.
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
SEGMENT ITEMS TO CERTAIN NON-GAAP ADJUSTED SEGMENT
ITEMS
|
(Unaudited)
|
|
(in
millions)
|
Reported
|
|
Items
Affecting
Comparability
|
|
Adjusted
GAAP
|
For the First
Quarter Ended March 31, 2020
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
Coffee
Systems
|
$
|
272
|
|
|
$
|
75
|
|
|
$
|
347
|
|
Packaged
Beverages
|
189
|
|
|
14
|
|
|
203
|
|
Beverage
Concentrates
|
197
|
|
|
—
|
|
|
197
|
|
Latin America
Beverages
|
27
|
|
|
—
|
|
|
27
|
|
Unallocated corporate
costs
|
(219)
|
|
|
129
|
|
|
(90)
|
|
Total income from
operations
|
$
|
466
|
|
|
$
|
218
|
|
|
$
|
684
|
|
|
|
(in
millions)
|
Reported
|
|
Items
Affecting
Comparability
|
|
Adjusted
GAAP
|
For the First
Quarter Ended March 31, 2019
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
Coffee
Systems
|
$
|
293
|
|
|
$
|
42
|
|
|
$
|
335
|
|
Packaged
Beverages
|
149
|
|
|
11
|
|
|
160
|
|
Beverage
Concentrates
|
201
|
|
|
—
|
|
|
201
|
|
Latin America
Beverages
|
11
|
|
|
1
|
|
|
12
|
|
Unallocated corporate
costs
|
(156)
|
|
|
69
|
|
|
(87)
|
|
Total income from
operations
|
$
|
498
|
|
|
$
|
123
|
|
|
$
|
621
|
|
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
|
$
|
1,180
|
|
Interest
expense
|
638
|
|
Provision for income
taxes
|
404
|
|
Loss on early
extinguishment of debt
|
4
|
|
Impairment on
investment
|
86
|
|
Other (income)
expense, net
|
34
|
|
Depreciation
expense
|
371
|
|
Other
amortization
|
170
|
|
Amortization of
intangibles
|
128
|
|
EBITDA
|
$
|
3,015
|
|
Items affecting
comparability:
|
|
Restructuring and
integration expenses
|
$
|
225
|
|
Transaction
costs
|
9
|
|
Productivity
|
116
|
|
Nonroutine legal
matters
|
50
|
|
Stock
compensation
|
24
|
|
Malware
incident
|
3
|
|
Mark to
market
|
13
|
|
COVID-19
|
5
|
|
Adjusted
EBITDA
|
$
|
3,460
|
|
|
|
|
March
31,
|
|
2020
|
Principal amounts
of:
|
|
Commercial paper
notes
|
$
|
859
|
|
Term loan
|
975
|
|
KDP
Revolver
|
1,000
|
|
Senior unsecured
notes
|
11,725
|
|
Total principal
amounts
|
14,559
|
|
Less: Cash and cash
equivalents
|
197
|
|
Total principal
amounts less cash and cash equivalents
|
$
|
14,362
|
|
|
|
March 31, 2020
Management Leverage Ratio
|
4.2
|
|
KEURIG DR PEPPER
INC.
|
RECONCILIATION OF
ADJUSTED EBITDA - LAST TWELVE MONTHS
|
(Unaudited)
|
|
(in
millions)
|
SECOND
QUARTER
OF 2019
|
|
THIRD
QUARTER
OF 2019
|
|
FOURTH
QUARTER
OF 2019
|
|
FIRST
QUARTER
OF 2020
|
|
LAST
TWELVE
MONTHS
|
Net
income
|
$
|
314
|
|
|
$
|
304
|
|
|
$
|
406
|
|
|
$
|
156
|
|
|
$
|
1,180
|
|
Interest
expense
|
170
|
|
|
158
|
|
|
157
|
|
|
153
|
|
|
638
|
|
Provision for income
taxes
|
102
|
|
|
109
|
|
|
144
|
|
|
49
|
|
|
404
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
4
|
|
Impairment on
investment
|
—
|
|
|
—
|
|
|
—
|
|
|
86
|
|
|
86
|
|
Other (income)
expense, net
|
1
|
|
|
9
|
|
|
4
|
|
|
20
|
|
|
34
|
|
Depreciation
expense
|
87
|
|
|
99
|
|
|
87
|
|
|
98
|
|
|
371
|
|
Other
amortization
|
54
|
|
|
46
|
|
|
38
|
|
|
32
|
|
|
170
|
|
Amortization of
intangibles
|
32
|
|
|
31
|
|
|
32
|
|
|
33
|
|
|
128
|
|
EBITDA
|
$
|
760
|
|
|
$
|
756
|
|
|
$
|
870
|
|
|
$
|
629
|
|
|
$
|
3,015
|
|
Items affecting
comparability:
|
|
|
|
|
|
|
|
|
|
Restructuring and
integration expenses
|
$
|
37
|
|
|
$
|
74
|
|
|
$
|
62
|
|
|
$
|
52
|
|
|
$
|
225
|
|
Transaction
costs
|
1
|
|
|
7
|
|
|
1
|
|
|
—
|
|
|
9
|
|
Productivity
|
20
|
|
|
34
|
|
|
20
|
|
|
42
|
|
|
116
|
|
Nonroutine legal
matters
|
8
|
|
|
12
|
|
|
21
|
|
|
9
|
|
|
50
|
|
Stock
compensation
|
8
|
|
|
3
|
|
|
6
|
|
|
7
|
|
|
24
|
|
Malware
incident
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
COVID-19
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
Mark to
market
|
(8)
|
|
|
9
|
|
|
(46)
|
|
|
58
|
|
|
13
|
|
Adjusted
EBITDA
|
$
|
829
|
|
|
$
|
895
|
|
|
$
|
934
|
|
|
$
|
802
|
|
|
$
|
3,460
|
|
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 first
quarter of 2020 and 2019, there were no certain items excluded for
comparison to prior year periods.
|
|
First
Quarter
|
(in
millions)
|
|
2020
|
|
2019
|
Net cash provided
by operating activities
|
|
$
|
414
|
|
|
$
|
591
|
|
Purchases of
property, plant and equipment
|
|
(151)
|
|
|
(62)
|
|
Proceeds from sales
of property, plant and equipment
|
|
201
|
|
|
18
|
|
Free Cash
Flow
|
|
$
|
464
|
|
|
$
|
547
|
|
RECONCILIATION OF CERTAIN CURRENCY NEUTRAL ADJUSTED FINANCIAL
RESULTS
(Unaudited)
Net sales, adjusted income from operations and adjusted earnings
per share, as adjusted to currency neutral: These adjusted
financial results are calculated on a currency neutral basis by
converting our current-period local currency financial results
using the prior-period foreign currency exchange rates.
|
|
For the First
Quarter Ended March 31, 2020
|
|
|
Coffee
|
|
Packaged
|
|
Beverage
|
|
Latin
America
|
|
|
Percent
change
|
|
Systems
|
|
Beverages
|
|
Concentrates
|
|
Beverages
|
|
Total
|
Net
sales
|
|
0.5
|
%
|
|
9.1
|
%
|
|
0.7
|
%
|
|
0.9
|
%
|
|
4.4
|
%
|
Impact of foreign
currency
|
|
(0.1)
|
%
|
|
—
|
%
|
|
—
|
%
|
|
4.3
|
%
|
|
0.1
|
%
|
Net sales, as
adjusted to currency neutral
|
|
0.4
|
%
|
|
9.1
|
%
|
|
0.7
|
%
|
|
5.2
|
%
|
|
4.5
|
%
|
|
|
|
|
For the First
Quarter Ended March 31, 2020
|
|
|
Coffee
|
|
Packaged
|
|
Beverage
|
|
Latin
America
|
|
|
Percent
change
|
|
Systems
|
|
Beverages
|
|
Concentrates
|
|
Beverages
|
|
Total
|
Adjusted income
from operations
|
|
3.6
|
%
|
|
26.9
|
%
|
|
(2.0)
|
%
|
|
125.0
|
%
|
|
10.1
|
%
|
Impact of foreign
currency
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
16.7
|
%
|
|
0.4
|
%
|
Adjusted income
from operations, as adjusted to currency neutral
|
|
3.6
|
%
|
|
26.9
|
%
|
|
(2.0)
|
%
|
|
141.7
|
%
|
|
10.5
|
%
|
|
For the First
Quarter Ended
March 31, 2020
|
Adjusted diluted
earnings per share
|
$
|
0.29
|
Impact of foreign
currency
|
—
|
Adjusted diluted
earnings per share, as adjusted to currency neutral
|
$
|
0.29
|
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SOURCE Keurig Dr Pepper Inc.