Keurig Dr Pepper 2020 net sales rise 4.5% to $11.62B

Feb. 26, 2021

Keurig Dr Pepper Inc. (Nasdaq: KDP) this week reported financial results for the fourth quarter and full year, ended Dec. 31, 2020, and provided guidance for 2021. KDP delivered strong net sales growth and double-digit adjusted diluted EPS growth.

KDP’s GAAP net income for the full year advanced 5.7% to $1.33 billion, or $0.93 per diluted share, compared with $1.25 billion, or $0.88 per diluted share in the year-ago period.

Companywide net sales for the full year of 2020 increased 4.5% to $11.62 billion, compared with $11.12 billion in the year-ago period. On a constant currency basis, net sales increased 5%, driven by higher volume/mix of 5.6%, partially offset by lower net price realization of 0.6%.

Net sales in the coffee systems division in 2020 increased 4.7% to $4.43 billion, compared wit $4.23 billion in the year-ago period, reflecting higher volume/mix of 7.2%, partially offset by lower net price realization of 2.4%.  Also impacting the net sales performance was unfavorable foreign currency translation of 0.1%.  On a constant currency basis, net sales advanced 4.8%.

Net sales for packaged beverages in 2020 increased 8.5% to $5.36 billion, compared with $4.95 billion in the year-ago period, reflecting favorable volume/mix of 8.2% and higher net price realization of 0.3%. This strong performance reflected market share growth across the portfolio, with particular strength in CSDs, premium unflavored water, juice, apple sauce and mixers, partially offset by softness in enhanced flavored water due to a slowdown in the convenience and gas channels for most of the year.

Packaged beverage brands driving the strong net sales performance were Dr Pepper, A&W, Canada Dry, 7UP, Squirt and Sunkist CSDs and Core Hydration, along with evian water, Motts juices, Snapple teas and juice drinks, as well as A Shoc energy, Clamato, Real Lemon and mixers – partially offset by a decline in Bai.

Net sales for beverage concentrates in 2020 decreased 6.3% to $1.33 billion, compared wit $1.41 billion in the year-ago period, reflecting unfavorable volume/mix of 5.8%.

Fourth-quarter consolidated results

Net sales in the fourth quarter of 2020 grew at an accelerated rate of 6.4% to $3.12 billion, compared with $2.93 billion in the year-ago period.  On a constant currency basis, net sales advanced 6.6%, reflecting higher volume/mix of 6.3% and favorable net price realization of 0.3%.

KDP in-market performance remained strong in the quarter, with dollar market share continuing to advance in more than 90% of KDP's cold beverage retail base. This performance reflected particular strength in CSDs, premium unflavored water, teas and fruit drinks, vegetable juice, apple juice and apple sauce.

In coffee, retail consumption of single-serve pods manufactured by KDP grew more than 7% in IRi tracked channels, with accelerated growth in e-commerce, partially offset by significant declines in away from home office and hospitality businesses. In the U.S. tracked channels, dollar market share of KDP manufactured pods remained strong at 83%.

Click here to see full press release and consolidated statements of income

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