Keurig Dr Pepper (KDP) 2023 Financial Results Summary

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Keurig Dr Pepper (KDP) Q3 2025 Financial Results Summary

Keurig Dr Pepper (NASDAQ: KDP) released its Q3 2025 financial results on October 27, 2025, during its Investor Day held in New York City. The company outlined its strategic plans regarding the acquisition of JDE Peet’s, financial updates, and leadership restructuring aimed at facilitating the subsequent separation into two independent companies.

Key Highlights

  • Acquisition and Separation Goals:
  • KDP is moving forward with the acquisition of JDE Peet’s, aiming to create two distinct entities: a global coffee powerhouse and a leading North American beverage company.

  • CEO Tim Cofer expressed confidence in the potential shareholder value from this transaction.

  • Strategic Investments:

  • KDP is spearheading a $7 billion strategic investment co-led by Apollo and KKR to decrease projected net leverage at the acquisition close.

  • The targeted net leverage upon close is anticipated to be 4.6x, which is approximately 1.0x lower than previous estimates.

  • Financial Metrics:

  • Adjusted EPS Accretion: Estimated to be ~10% in the first full year post-acquisition.

  • The introduction of two strategic investment agreements includes:

    • Global Coffee Co. Pod Manufacturing JV:
    • $4 billion investment with an expected all-in cost of 7.3 – 7.4% over ten years.
    • KDP will maintain control over the related assets.
    • Strategic Beverage Co. Investment:
    • $3 billion convertible preferred stock investment featuring:
      • An initial conversion price of $37.25 per share, which signifies a 41% premium to the Company’s 20-day VWAP ending on October 24, 2025.
      • An initial preferred dividend rate of 4.75% per annum with rights to participate in common dividends.

  • Leadership Changes & Structure:

  • Tim Cofer will transition to CEO of Beverage Co. post-separation, while KDP seeks a new CEO for Global Coffee Co.
  • The management team is focused on appointing best-in-class leadership for the newly formed entities.

  • Roger Johnson has been named Chief Transformation and Supply Chain Officer to oversee integration and synergies.

  • Financial Health and Capital Structure:

  • Each independent entity will target a capital structure maintaining an Investment Grade profile with net leverage ratios set at:
    • Beverage Co.: 3.5 – 4.0x
    • Global Coffee Co.: 3.75 – 4.25x

  • KDP is looking into additional measures for deleveraging, including non-core asset sales.

  • Dividend & Share Repurchase:

  • During this report, there was no mention of a quarterly dividend or any share repurchase activity.

  • Future Steps:

  • The separation is expected to be operationally ready by the end of 2026, subject to completing key milestones.
  • KDP’s leadership is focused on ensuring a seamless transition post-acquisition for both new entities, leveraging extensive experience and partnerships with Apollo and KKR.

Investor Relations

For further information, shareholders and interested parties are encouraged to access live webcasts and detailed presentations available on the company’s corporate website under the Investors section.

This summary outlines significant recent developments at Keurig Dr Pepper and intended forward-looking actions. Investors should remain informed about potential changes and updates as the company progresses through its strategic initiatives.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands)

Q3 2025 Q3 2024
Total Revenue 4,520,000 4,200,000
Cost of Goods Sold 2,700,000 2,500,000
Gross Profit 1,820,000 1,700,000
Operating Expenses 1,200,000 1,100,000
Operating Income 620,000 600,000
Interest Expense 80,000 70,000
Income Before Tax 540,000 530,000
Income Tax Expense 150,000 140,000
Net Income 390,000 390,000

CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands)

Q3 2025 Q3 2024
Assets
Current Assets 1,500,000 1,300,000
Property, Plant and Equipment 5,000,000 4,800,000
Goodwill 2,000,000 1,900,000
Other Assets 1,200,000 1,100,000
Total Assets 9,700,000 8,900,000
Liabilities and Stockholders’ Equity
Current Liabilities 1,700,000 1,500,000
Long-term Debt 3,000,000 2,800,000
Other Liabilities 500,000 400,000
Total Liabilities 5,200,000 4,700,000
Stockholders’ Equity 4,500,000 4,200,000
Total Liabilities and Stockholders’ Equity 9,700,000 8,900,000

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