BURLINGTON, Mass. and
FRISCO, Texas, Feb. 24, 2022 /PRNewswire/ -- Keurig Dr Pepper
Inc. (NASDAQ: KDP) today reported strong financial results for the
fourth quarter and full year ended December
31, 2021 and affirms guidance for
2022.
|
Reported GAAP
Basis
|
Adjusted
Basis1
|
|
|
|
Q4
|
FY
2021
|
Q4
|
FY
2021
|
Net
Sales
% vs Prior Year
% vs Prior
Year – Constant Currency
% vs FY
2019 – Constant Currency
|
$3.39
bn
8.7%
|
$12.68
bn
9.2%
|
$3.39
bn
8.7%
8.5%
15.7%
|
$12.68
bn
9.2%
8.4%
13.9%
|
Diluted
EPS
% vs
Prior Year
% vs FY
2019
|
$0.59
96.7%
103.4%
|
$1.50
61.3%
70.5%
|
$0.45
15.4%
28.6%
|
$1.60
14.3%
31.2%
|
Full-year 2021 highlights
Strong performance in 2021
marked the successful completion of the Company's three-year merger
period, with results that met or exceeded all key commitments.
Highlights of 2021 performance include:
- Posted high single-digit net sales growth and double-digit
Adjusted diluted EPS growth.
- Grew market share2 in nearly 75% of the Company's
cold beverage retail base.
- Added nearly three million new U.S. households to the Keurig
system, bringing total Keurig households to almost 36 million,
reflecting successful brewer innovation including the Keurig
Supreme Plus Smart – KDP's first connected brewer launch.
- Improved KDP's management leverage ratio to 2.9x at year-end
2021.
- Continued to navigate the evolving macro challenges presented
by COVID-19 and prioritize and invest in the health and safety of
employees.
- Advanced KDP's corporate responsibility agenda, including
adding new goals for Diversity & Inclusion, Positive Hydration,
and Regenerative Agriculture.
Commenting on the announcement, Chairman and CEO Bob Gamgort stated, "We finished 2021 with
exceptional top-line momentum, driven by robust consumer demand
across our portfolio, and our third consecutive year of
double-digit Adjusted EPS growth. Despite ongoing macro and
COVID-related challenges, we successfully delivered our merger
commitments on or ahead of the targets we set four years ago. We
head into 2022 with confidence in the stronger, faster-growing
business we have built, poised to continue to drive outsized
long-term value creation in an environment that we expect to remain
challenging for some time."
2021 Full Year Consolidated Results
Net sales for the
full year of 2021 increased 9.2% to $12.68
billion, compared to $11.62
billion in the year-ago period, driven by strong growth in
each business segment. On a constant currency basis, net sales
increased 8.4%, driven by higher volume/mix of 5.7% and favorable
net price realization of 2.7%. On a two-year basis, constant
currency net sales advanced 13.9% versus 2019.
KDP in-market performance in the Liquid Refreshment Beverages
(LRB) category remained strong for the year, with retail dollar
consumption2 advancing 8.4% versus prior year across the
Company's cold beverage retail base, largely reflecting strength in
CSDs3, premium unflavored water, coconut water, apple
juice, and apple sauce. This performance reflected the strength of
Dr Pepper, Canada Dry, A&W, Sunkist and Squirt CSDs, CORE
Hydration and Evian premium water, Vita
Coco coconut water, Polar seltzers, and Mott's apple juice
and apple sauce. On a two-year basis, KDP gained market share in
77% of its cold beverage retail base and grew consumption of its
cold beverage portfolio by 22%. KDP's performance in CSDs has been
particularly strong, with the Company now holding a CSD share
position of nearly 25%.
In coffee, retail dollar consumption of single-serve pods
manufactured by KDP in IRi tracked channels grew 2.7% versus prior
year and KDP manufactured share remained strong, advancing to 83.2%
for the year. Performance in the away-from-home business improved
versus year-ago, although the increase in overall consumer mobility
has not yet fully translated into a broad return to offices. On a
two-year basis, retail consumption of single-serve pods
manufactured by KDP increased 12.7% in IRi tracked channels.
GAAP operating income for the full year of 2021 increased 16.7%
to $2.89 billion, compared to
$2.48 billion in the year-ago period,
driven by the strong net sales growth, productivity, merger
synergies and the net year-over-year benefit of $28 million from the Company's strategic asset
investment program initiated in 2019. This program creates value
from certain assets to enable reinvestment in strategic assets.
Also contributing to growth was the favorable year-over-year impact
of items affecting comparability, including lower COVID-related
costs and comparison to a non-cash impairment charge in the
year-ago period. Partially offsetting these positive drivers were
the impacts of broad-based inflation and significant supply chain
disruption across manufacturing, logistics, material inputs and
labor availability, all exacerbated by Omicron late in the year.
Also impacting the comparison was a double-digit increase in
marketing investment, which more than offset the aforementioned
$28 million strategic asset
investment program benefit.
Adjusted operating income for the full year of 2021 increased
7.2% to $3.42 billion, compared to
$3.19 billion in the year-ago period
and, on a constant currency basis, Adjusted operating income grew
6.5%. Adjusted operating margin was 27.0% in 2021, compared to
27.5% in the prior year. On a two-year basis, Adjusted operating
income advanced 18.3% versus 2019.
GAAP net income for the full year of 2021 advanced 62% to
$2.15 billion, or $1.50 per diluted share, compared to $1.33 billion, or $0.93 per diluted share, in the year-ago period.
This performance was driven by the growth in operating income,
lower interest expense and a lower effective tax rate, as well as
the favorable year-over-year impact of items affecting
comparability, including an after-tax gain of $400 million on the sale of the Company's equity
interest in BodyArmor.
Adjusted net income for the full year of 2021 increased 14.7% to
$2.28 billion, compared to
$1.99 billion in the prior year.
Adjusted diluted EPS for the year increased 14.3% to $1.60, compared to $1.40 in the prior year. On a two-year basis,
Adjusted diluted EPS advanced 31.2% versus 2019.
KDP generated exceptionally strong free cash flow totaling
$2.57 billion in 2021, primarily
reflecting growth in earnings and ongoing effective working capital
management. The free cash flow performance, combined with pre-tax
cash proceeds of $576 million from
the sale of the Company's equity interest in BodyArmor, enabled KDP
to reduce total financial obligations by $1.73 billion in 2021 and end the year with
$567 million of unrestricted cash on
hand. In addition, the Company's management leverage ratio declined
to 2.9x at the end of 2021, compared to 3.6x at the end of 2020.
Since the close of the merger in July
2018, KDP's management leverage ratio declined by 3.1x.
1 Adjusted financial metrics used in this release are
non-GAAP. See reconciliations of GAAP results to Adjusted results
in the accompanying tables.
2 Market share and retail consumption data based on
Keurig Dr Pepper's custom IRi category definitions for the 13-week
and 52-week periods ending 12/26/2021.
3 CSDs refer to "Carbonated Soft Drinks".
2021 Full Year Segment Results
Coffee Systems
Net sales for the full year of
2021 increased 6.4% to $4.72 billion,
compared to $4.43 billion in the
year-ago period. On a constant currency basis, net sales advanced
5.6%, driven by higher volume/mix of 6.5% and lower net price
realization of 0.9%. The net price realization reflected continued
moderation in strategic pod pricing and customer fines stemming
from challenged service levels in the fourth quarter of 2021, only
partially offset by the benefit of list price increases on owned
and licensed pods and brewers which were implemented late in the
year.
The volume/mix growth of 6.5% reflected pod volume growth of
5.6% and exceptionally strong brewer volume growth of 10% that
successfully lapped the 21% growth in brewer volume in the prior
year. The pod volume performance reflected continued strong growth
in the at-home business, largely reflecting the benefit of
significant growth in households in the Keurig system, and
improving trends in the away-from-home business. The strong brewer
growth was driven by continued, successful innovation, marketing
investment to grow household penetration and a strong holiday
season. For the full year, U.S. households regularly using a Keurig
brewer increased approximately 9% on top of similar growth in
2020.
GAAP operating income increased 3.9% to $1.32 billion in 2021, compared to $1.27 billion in the year-ago period. This
performance reflected the growth in net sales, productivity and
merger synergies, as well as the favorable year-over-year impact of
items affecting comparability. Partially offsetting these drivers
were the impacts of broad-based inflation, significant supply chain
disruption, including higher operating costs to meet strong
consumer demand, and the unfavorable comparison to a $16 million strategic asset investment program
benefit recorded in the segment in the first quarter of 2020.
Adjusted operating income totaled $1.52
billion, compared to $1.51
billion in the year-ago period and, on a constant currency
basis, Adjusted operating income decreased 0.4%. On a percent of
net sales basis, Adjusted operating income in 2021 was 32.1%,
compared to 34.2% in the prior year, largely due to the timing of
pricing in the market lagging inflation, as well as the costs of
supply chain disruption in the fourth quarter not being fully
offset by productivity.
Packaged Beverages
Net sales for the full year
of 2021 increased 9.7% to $5.88
billion, compared to $5.36
billion in the year-ago period. On a constant currency
basis, net sales increased 9.5%, reflecting favorable volume/mix of
6.0% and higher net price realization of 3.5%. This strong
performance reflected continued market share growth across the
portfolio, with particular strength in CSDs, coconut water, apple
juice, and apple sauce.
Driving the strong net sales performance were Canada Dry,
Sunkist, Dr Pepper, A&W, 7UP and Squirt CSDs, as well as growth
in Mott's, Polar seltzers, Vita
Coco, and Snapple, partially offset by a decline in Hawaiian
Punch.
GAAP operating income increased 22.9% to $1.01 billion in 2021, compared to $0.82 billion in the prior year, reflecting the
strong growth in net sales, continued productivity and merger
synergies and the net year-over-year benefit of $44 million recorded in the segment from the
Company's strategic asset investment program. Also benefitting the
comparison was the favorable year-over-year impact of items
affecting comparability, including lower costs related to COVID-19
and comparison to a non-cash impairment charge in the prior year.
Partially offsetting these drivers were the impacts of broad-based
inflation, significant supply chain disruption, including higher
operating costs to meet strong consumer demand, and increased
marketing investment.
Adjusted operating income increased 8.6% to $1.11 billion, compared to $1.02 billion in the prior year and, on a
constant currency basis, Adjusted operating income increased 8.3%.
On a percent of net sales basis, Adjusted operating income was
18.9% in 2021, compared to 19.0% in the prior year, reflecting the
strong growth in net sales offset by the combined impacts of
inflation, increased marketing investment and higher costs to meet
consumer demand, which were not fully offset by productivity.
Beverage Concentrates
Net sales for the full
year of 2021 increased 12.2% to $1.49
billion, compared to $1.33
billion in the prior year. On a constant currency basis, net
sales increased 11.7%, reflecting favorable volume/mix of 2.0% and
higher net price realization of 9.7%. The volume/mix performance
was fueled by the benefit of significantly increased marketing
investment and improving trends versus the prior year in the
fountain foodservice business, as consumer mobility in the
restaurant and hospitality channels increased.
Total shipment volume increased 1.1% in 2021 versus the prior
year, driven by growth in Dr Pepper, A&W and Crush, partially
offset by lower shipment volume in Canada Dry. Bottler cases sales volume in 2021
increased 2.0% versus the prior year.
GAAP operating income for the full year increased 12.0% to
$1.04 billion, compared to
$0.93 billion in the year-ago period,
reflecting the higher net sales, partially offset by significantly
higher marketing investment and a slightly unfavorable
year-over-year impact of items affecting comparability.
Adjusted operating income increased 12.5% to $1.06 billion for the full year of 2021, compared
to $0.94 billion in the prior year
and, on a constant currency basis, Adjusted operating income
increased 11.9%. On a percent of net sales basis, Adjusted
operating income increased 20 basis points to 71.0% in 2021,
compared to 70.8% in the prior year, largely reflecting the strong
growth in net sales, partially offset by the significantly higher
marketing investment.
Latin America Beverages
Net sales for the full
year of 2021 increased 20.5% to $599
million, compared to $497
million in the prior year and, on a constant currency basis,
net sales increased 14.1%. This performance was driven by higher
volume/mix of 7.3%, fueled by significantly higher marketing
investment, and higher net price realization of 6.8%. Leading the
strong growth in net sales were Peñafiel and Clamato.
GAAP operating income for the full year increased 26.7% to
$133 million, compared to
$105 million in the year-ago period,
reflecting the growth in constant currency net sales, continued
productivity and the favorable year-over-year impact of items
affecting comparability. These positive drivers were partially
offset by inflation and the significant increase in marketing
investment.
Adjusted operating income increased 25.0% in 2021 to
$135 million, compared to
$108 million in the prior year and,
on a constant currency basis, Adjusted operating income increased
19.4%. On a percent of net sales basis, Adjusted operating income
increased 80 basis points in 2021 to 22.5%, compared to 21.7% in
the prior year, primarily driven by the strong growth in net
sales.
Fourth Quarter Consolidated Results
Net sales for the fourth quarter of 2021 increased 8.7% to
$3.39 billion, compared to
$3.12 billion in the year-ago period,
primarily reflecting exceptionally strong growth in Packaged
Beverages, along with strong growth in Beverage Concentrates and
Latin America Beverages. On a constant currency basis, net sales
advanced 8.5%, reflecting higher volume/mix of 4.4% and favorable
net price realization of 4.1%. On a two-year basis, constant
currency net sales advanced 15.7% versus 2019.
KDP in-market performance in the LRB category remained strong in
the quarter, with retail dollar consumption advancing 12.6% across
the Company's cold beverage retail base, largely reflecting
strength in CSDs, premium unflavored water, coconut water, apple
juice, and apple sauce. This performance was driven by Dr Pepper,
Sunkist, Canada Dry, A&W and Squirt CSDs, CORE Hydration and
Evian premium water, Vita Coco,
Polar seltzers, and Mott's. On a two-year basis, KDP gained market
share in 83% of its cold beverage retail base and grew consumption
of its cold beverage portfolio by 27%.
In coffee, retail dollar consumption of single-serve pods
manufactured by KDP in IRi tracked channels increased 3.4%, driven
by growth in partner brands and KDP owned and licensed brands,
partially offset by a decline in private label pods manufactured by
KDP. KDP manufactured share remained strong, advancing 60 basis
points to 83.5% in the quarter. Performance in the away-from-home
business improved versus the year-ago shelter-in-place environment,
although the increase in overall consumer mobility has not yet
fully translated into a broad return to offices. On a two-year
basis, retail consumption of single-serve pods manufactured by KDP
increased 11.2% in IRi tracked channels.
GAAP operating income increased 3.6% to $725 million in the fourth quarter of 2021,
compared to $700 million in the
year-ago period, reflecting the benefits of the strong growth in
net sales, productivity, merger synergies and a strategic asset
investment program benefit of $70
million in the quarter. Partially offsetting these positive
drivers were the impacts of broad-based inflation and significant
supply chain disruption across manufacturing, logistics, material
inputs and labor availability. Also impacting the comparison was
increased marketing investment and the unfavorable year-over-year
impact of items affecting comparability.
Adjusted operating income in the quarter grew 6.1% to
$910 million, compared to
$858 million in the year-ago period.
Adjusted operating margin was 26.8% in the quarter, compared to
27.5% in the year-ago period. On a two-year basis, fourth quarter
Adjusted Operating income advanced 11.9% versus 2019. On a constant
currency basis, Adjusted operating income grew 5.9% in the fourth
quarter versus year-ago.
GAAP net income in the fourth quarter of 2021 increased 97% to
$843 million, or $0.59 per diluted share, compared to GAAP net
income of $428 million, or
$0.30 per diluted share, in the
year-ago period. This performance was driven by the growth in
operating income, lower interest expense and a lower effective tax
rate. Also benefitting the performance was the favorable
year-over-year impact of items affecting comparability, including
the aforementioned $400 million
after-tax gain on the sale of the Company's equity interest in
BodyArmor and comparison to a non-cash impairment charge in the
prior year.
Adjusted net income advanced 15.5% to $640 million in the fourth quarter of 2021,
compared to $554 million in the
year-ago period. Adjusted diluted EPS increased 15.4% to
$0.45, compared to $0.39 in the year-ago period. On a two-year
basis, Adjusted diluted EPS in the quarter grew 28.6% versus
2019.
Fourth Quarter Segment Results
Coffee Systems
Net sales for the fourth quarter
of 2021 totaled $1.32 billion,
essentially even with the year-ago period. On a constant currency
basis, net sales declined 0.5%, reflecting higher volume/mix of
0.1%, and lower net price realization of 0.6%. The net price
realization reflected the benefit of pricing actions taken in the
quarter, primarily on owned and licensed pods, more than offset by
continued moderation in strategic pod pricing and customer fines
incurred due to challenged service levels, as strong consumer
demand for pods exceeded capacity due to supply chain challenges
and labor shortages exacerbated by Omicron.
The volume/mix increase of 0.1% in the quarter reflected pod
volume growth of 2.7%, which was capacity constrained, and a 10.8%
decline in brewer shipments due to comparison to the very strong
brewer shipment growth of 28% in the year-ago period. Pod growth
reflected strong demand in the at-home business, fueled by the
significant growth in households using Keurig brewers, and
improving trends in the away-from-home business.
GAAP operating income declined 15.5% to $326 million in the fourth quarter of 2021,
compared to $386 million in the
year-ago period, largely reflecting the broad-based inflationary
environment and the impact of supply chain challenges, including
capacity constraints and labor shortages. Also impacting the
comparison was the unfavorable year-over-year impact of items
affecting comparability. Partially offsetting these drivers were
continued productivity and merger synergies, as well as lower
marketing expense.
Adjusted operating income declined 12.3% to $378 million, compared to $431 million in the year-ago period and, on a
percent of net sales basis, Adjusted operating income in the fourth
quarter of 2021 was 28.7%, compared to 32.7% in the year-ago
period.
Packaged Beverages
Net sales for the fourth
quarter of 2021 increased 17.1% to $1.53
billion, compared to $1.31
billion in the year-ago period. On a constant currency
basis, net sales increased 17.0%, reflecting favorable volume/mix
of 10.3%, due to continued strong in-market execution and market
share expansion across the portfolio and higher net price
realization of 6.7%.
Leading the net sales performance were Canada Dry, Dr Pepper,
Sunkist, A&W, 7UP and Squirt CSDs, Mott's, and Snapple, as well
as growth in Polar seltzers, CORE Hydration, Vita Coco, Clamato, Yoo-Hoo, and Bai.
GAAP operating income increased 75% in the fourth quarter of
2021 to $289 million, compared to
$165 million in the year-ago period,
reflecting the strong net sales growth, the aforementioned
$70 million strategic asset
investment program benefit realized in the segment, continued
productivity, merger synergies and the favorable year-over-year
impact of items affecting comparability. Partially offsetting these
drivers were the broad-based inflationary environment and the
impact of supply chain challenges and Omicron-related labor
shortages that drove higher operating costs to meet the continued
strong consumer demand, as well as increased marketing investment
in the quarter.
Adjusted operating income increased 28.2% to $314 million, compared to $245 million in the year-ago period and, on a
constant currency basis, Adjusted operating income increased 27.8%.
On a percent of net sales basis, Adjusted operating income in the
fourth quarter of 2021 increased 180 basis points to 20.5%,
compared to 18.7% in the year-ago period.
Beverage Concentrates
Net sales for the fourth
quarter of 2021 increased 9.2% to $391
million, compared to $358
million in the year-ago period. On a constant currency
basis, net sales advanced 8.9%, reflecting higher net price
realization of 9.8% and unfavorable volume/mix of 0.9%. The
volume/mix performance reflected lower bottle/can concentrate
shipments, largely offset by an increase in the fountain
foodservice business, driven by increased consumer mobility in the
restaurant and hospitality channels.
Total shipment volume versus year-ago decreased 2.3% in the
quarter, as declines in Canada Dry
were partially offset by increases in Dr Pepper. Bottler case sales
volume increased 1.4% in the quarter compared to the year-ago
period.
GAAP operating income in the fourth quarter of 2021 increased
5.1% to $266 million, compared to
$253 million in the year-ago period,
reflecting the impact of the higher net sales, partially offset by
a significant increase marketing investment and the unfavorable
year-over-year impact of items affecting comparability.
Adjusted operating income increased 6.7% to $271 million, compared to $254 million in the year-ago period and, on a
constant currency basis, Adjusted operating income increased 6.3%.
On a percent of net sales basis, Adjusted operating income was
69.3% in the quarter, compared to 70.9% in the year-ago period,
reflecting the increase in marketing investment.
Latin America Beverages
Net sales for the
fourth quarter of 2021 increased 11.8% to $152 million, compared to net sales of
$136 million in the year-ago period
and, on a constant currency basis, net sales increased 12.5%. This
performance was driven by higher net price realization of 8.8% and
increased volume/mix of 3.7%. Leading the strong net sales growth
in the quarter were Clamato, Peñafiel and Squirt.
GAAP operating income in the fourth quarter of 2021 increased
18.8% to $38 million, compared to
$32 million in the year-ago period,
reflecting the strong growth in constant currency net sales,
continued productivity and the favorable year-over-year impact of
items affecting comparability. These drivers were partially offset
by the broad-based inflationary environment and higher marketing
investment.
Adjusted operating income increased 15.2% to $38 million, compared to $33 million in the year-ago period and, on a
constant currency basis, Adjusted operating income increased 18.2%.
On a percent of net sales basis, Adjusted operating income
increased 70 basis points to 25.0% in the quarter, compared to
24.3% in the year-ago period.
KDP 2022 Guidance
KDP affirmed guidance for both net sales and Adjusted diluted
EPS growth in 2022 in the mid-single-digit range. The Company
expects EPS performance versus 2021 to strengthen throughout the
year, with Adjusted diluted EPS growth reaching the
high-single-digit range in the second half of 2022, in line with
the Company's long-term algorithm.
Investor Contacts:
Steve
Alexander
T: 972-673-6769 / steve.alexander@kdrp.com
Media Contact:
Katie
Gilroy
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 $12 billion and approximately 27,000 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. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
These statements are based on the current expectations of our
management, are not predictions of actual performance, and actual
results may differ materially.
Forward-looking statements are subject to a number of risks and
uncertainties, including the impact of the global COVID-19 pandemic
and the factors disclosed in our Annual Report on Form 10-K and
subsequent filings with the SEC. We are under no obligation to
update, modify or withdraw any forward-looking statements, except
as required by applicable law.
NON-GAAP FINANCIAL MEASURES
This release includes
certain non-GAAP financial measures including Adjusted operating
income, Adjusted net income, Adjusted diluted EPS, free cash flow
and financial measures presented on a constant currency basis,
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 that 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 their
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.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE
DATA)
|
|
|
Fourth
Quarter
|
|
Year Ended
December 31,
|
(in millions,
except per share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales
|
$
3,391
|
|
$
3,121
|
|
$
12,683
|
|
$
11,618
|
Cost of
sales
|
1,619
|
|
1,353
|
|
5,706
|
|
5,132
|
Gross
profit
|
1,772
|
|
1,768
|
|
6,977
|
|
6,486
|
Selling, general and
administrative expenses
|
1,113
|
|
1,000
|
|
4,153
|
|
3,978
|
Impairment of
intangible assets
|
—
|
|
67
|
|
—
|
|
67
|
Other operating
expense (income), net
|
(66)
|
|
1
|
|
(70)
|
|
(39)
|
Income from
operations
|
725
|
|
700
|
|
2,894
|
|
2,480
|
Interest
expense
|
119
|
|
146
|
|
500
|
|
604
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
105
|
|
4
|
Gain on sale of
equity method investment
|
(524)
|
|
—
|
|
(524)
|
|
—
|
Impairment of
investments and note receivable
|
17
|
|
—
|
|
17
|
|
102
|
Other expense
(income), net
|
4
|
|
(4)
|
|
(2)
|
|
17
|
Income before
provision for income taxes
|
1,109
|
|
558
|
|
2,798
|
|
1,753
|
Provision for income
taxes
|
266
|
|
130
|
|
653
|
|
428
|
Net income
including non-controlling interest
|
843
|
|
428
|
|
2,145
|
|
1,325
|
Less: Net loss
attributable to non-controlling interest
|
—
|
|
—
|
|
(1)
|
|
—
|
Net income
attributable to KDP
|
$
843
|
|
$
428
|
|
$
2,146
|
|
$
1,325
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
0.59
|
|
$
0.30
|
|
$
1.52
|
|
$
0.94
|
Diluted
|
0.59
|
|
0.30
|
|
1.50
|
|
0.93
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
1,418.0
|
|
1,407.3
|
|
1,415.7
|
|
1,407.2
|
Diluted
|
1,429.0
|
|
1,423.8
|
|
1,427.9
|
|
1,422.1
|
KEURIG DR PEPPER
INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED, IN MILLIONS, EXCEPT PER SHARE
DATA)
|
|
|
December
31,
|
(in millions,
except share and per share data)
|
2021
|
|
2020
|
Assets
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
567
|
|
$
240
|
Restricted cash and
restricted cash equivalents
|
1
|
|
15
|
Trade accounts
receivable, net
|
1,148
|
|
1,048
|
Inventories
|
894
|
|
762
|
Prepaid expenses and
other current assets
|
447
|
|
323
|
Total current
assets
|
3,057
|
|
2,388
|
Property, plant and
equipment, net
|
2,494
|
|
2,212
|
Investments in
unconsolidated affiliates
|
30
|
|
88
|
Goodwill
|
20,182
|
|
20,184
|
Other intangible
assets, net
|
23,856
|
|
23,968
|
Other non-current
assets
|
937
|
|
894
|
Deferred tax
assets
|
42
|
|
45
|
Total
assets
|
$
50,598
|
|
$
49,779
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
4,316
|
|
$
3,740
|
Accrued
expenses
|
1,110
|
|
1,040
|
Structured
payables
|
142
|
|
153
|
Short-term borrowings
and current portion of long-term obligations
|
304
|
|
2,345
|
Other current
liabilities
|
613
|
|
416
|
Total current
liabilities
|
6,485
|
|
7,694
|
Long-term
obligations
|
11,578
|
|
11,143
|
Deferred tax
liabilities
|
5,986
|
|
5,993
|
Other non-current
liabilities
|
1,577
|
|
1,119
|
Total
liabilities
|
25,626
|
|
25,949
|
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, 1,418,119,197 and
1,407,260,676 shares issued and outstanding as of December 31, 2021
and 2020,
respectively
|
14
|
|
14
|
Additional paid-in
capital
|
21,785
|
|
21,677
|
Retained
earnings
|
3,199
|
|
2,061
|
Accumulated other
comprehensive (income) loss
|
(26)
|
|
77
|
Total stockholders'
equity
|
24,972
|
|
23,829
|
Non-controlling
interest
|
—
|
|
1
|
Total
equity
|
24,972
|
|
23,830
|
Total liabilities
and stockholders' equity
|
$
50,598
|
|
$
49,779
|
KEURIG DR PEPPER
INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED, IN MILLIONS)
|
|
|
Year Ended
December 31,
|
(in
millions)
|
2021
|
|
2020
|
Operating
activities:
|
|
|
|
Net income
attributable to KDP
|
$
2,146
|
|
$
1,325
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
expense
|
410
|
|
362
|
Amortization of
intangibles
|
134
|
|
133
|
Other amortization
expense
|
164
|
|
158
|
Provision for sales
returns
|
63
|
|
54
|
Deferred income
taxes
|
31
|
|
(51)
|
Employee stock-based
compensation expense
|
88
|
|
85
|
Loss on early
extinguishment of debt
|
105
|
|
4
|
Gain on sale of equity
method investment
|
(524)
|
|
—
|
Gain on disposal of
property, plant and equipment
|
(75)
|
|
(36)
|
Unrealized (gain) loss
on foreign currency
|
9
|
|
(1)
|
Unrealized (gain) loss
on derivatives
|
(70)
|
|
8
|
Equity in losses of
unconsolidated affiliates
|
5
|
|
20
|
Impairment of
intangible assets
|
—
|
|
67
|
Impairment on
investments and note receivable of unconsolidated
affiliates
|
17
|
|
102
|
Other, net
|
20
|
|
60
|
Changes in assets and
liabilities:
|
|
|
|
Trade accounts
receivable
|
(152)
|
|
(5)
|
Inventories
|
(133)
|
|
(107)
|
Income taxes
receivable and payables, net
|
114
|
|
(91)
|
Other current and
non-current assets
|
(243)
|
|
(435)
|
Accounts payable and
accrued expenses
|
762
|
|
624
|
Other current and
non-current liabilities
|
3
|
|
180
|
Net change in
operating assets and liabilities
|
351
|
|
166
|
Net cash provided by
operating activities
|
2,874
|
|
2,456
|
Investing
activities:
|
|
|
|
Proceeds from sale of
investment in unconsolidated affiliates
|
578
|
|
—
|
Purchases of
property, plant and equipment
|
(423)
|
|
(461)
|
Proceeds from sales
of property, plant and equipment
|
122
|
|
203
|
Purchases of
intangibles
|
(32)
|
|
(56)
|
Issuance of related
party note receivable
|
(19)
|
|
(6)
|
Investments in
unconsolidated affiliates
|
—
|
|
(5)
|
Other, net
|
(16)
|
|
9
|
Net cash provided by
(used in) investing activities
|
210
|
|
(316)
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of Notes
|
2,150
|
|
1,500
|
Repayments of
Notes
|
(3,595)
|
|
(250)
|
Proceeds from
issuance of commercial paper
|
5,406
|
|
7,288
|
Repayments of
commercial paper
|
(5,257)
|
|
(8,534)
|
Proceeds from KDP
Revolver
|
—
|
|
1,850
|
Repayments of KDP
Revolver
|
—
|
|
(1,850)
|
Repayments of 2019
KDP Term Loan
|
(425)
|
|
(955)
|
Proceeds from
structured payables
|
156
|
|
171
|
Repayments of
structured payables
|
(167)
|
|
(341)
|
Cash dividends
paid
|
(955)
|
|
(846)
|
Proceeds from
issuance of common stock
|
140
|
|
—
|
Tax withholdings
related to net share settlements
|
(125)
|
|
—
|
Payments on finance
leases
|
(54)
|
|
(52)
|
Proceeds from
controlling shareholder stock transactions
|
—
|
|
29
|
Other, net
|
(36)
|
|
—
|
Net cash used in
financing activities
|
(2,762)
|
|
(1,990)
|
Cash, cash
equivalents, restricted cash, and restricted cash
equivalents:
|
|
|
|
Net change from
operating, investing and financing activities
|
322
|
|
150
|
Effect of exchange
rate changes
|
(9)
|
|
(6)
|
Beginning
balance
|
255
|
|
111
|
Ending
balance
|
$
568
|
|
$
255
|
KEURIG DR PEPPER
INC. RECONCILIATION OF SEGMENT
INFORMATION (UNAUDITED)
|
|
|
Fourth
Quarter
|
|
Year Ended
December 31,
|
(in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
Sales
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
1,318
|
|
$
1,320
|
|
$
4,716
|
|
$
4,433
|
Packaged
Beverages
|
1,530
|
|
1,307
|
|
5,882
|
|
5,363
|
Beverage
Concentrates
|
391
|
|
358
|
|
1,486
|
|
1,325
|
Latin America
Beverages
|
152
|
|
136
|
|
599
|
|
497
|
Total net
sales
|
$
3,391
|
|
$
3,121
|
|
$
12,683
|
|
$
11,618
|
|
|
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
326
|
|
$
386
|
|
$
1,318
|
|
$
1,268
|
Packaged
Beverages
|
289
|
|
165
|
|
1,010
|
|
822
|
Beverage
Concentrates
|
266
|
|
253
|
|
1,044
|
|
932
|
Latin America
Beverages
|
38
|
|
32
|
|
133
|
|
105
|
Unallocated corporate
costs
|
(194)
|
|
(136)
|
|
(611)
|
|
(647)
|
Total income from
operations
|
$
725
|
|
$
700
|
|
$
2,894
|
|
$
2,480
|
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 fourth quarter and full year ended December 31, 2021 and 2020, 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, as well as the unrealized mark-to-market impact
of our Vita Coco investment; (ii)
the amortization associated with definite-lived intangible assets;
(iii) the amortization of the deferred financing costs associated
with the DPS Merger; (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 and the associated
windfall tax benefit attributable to the matching awards made to
employees who made an initial investment in KDP; (vi) non-cash
changes in deferred tax liabilities related to goodwill and other
intangible assets as a result of tax rate or apportionment changes;
and (vii) other certain items that are excluded for comparison
purposes to prior year periods.
For the fourth quarter and full year ended December 31, 2021, the other certain items
excluded for comparison purposes include (i) restructuring and
integration expenses related to significant business combinations;
(ii) productivity expenses; (iii) costs related to significant
non-routine legal matters; (iv) the loss on early extinguishment of
debt related to the redemption of debt; (v) incremental costs to
our operations related to risks associated with the COVID-19
pandemic; (vi) gains from insurance recoveries related to the
February 2019 organized malware
attack on our business operation networks in the Coffee Systems
segment; (vii) the gain on the sale of our investment in BodyArmor;
(viii) impairment recognized on our equity method investment with
Bedford as a result of funding our
share of their wind-down costs; and (ix) transaction costs for
significant business combinations (completed or abandoned).
For the fourth quarter and full year ended December 31, 2020, the other certain items
excluded for comparison purposes include (i) restructuring and
integration expenses related to significant business combinations;
(ii) productivity expenses; (iii) transaction costs for significant
business combinations (completed or abandoned) excluding the DPS
Merger; (iv) costs related to significant non-routine 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 our equity method investments with
Bedford and LifeFuels.
Costs related to significant non-routine legal matters relate to
the antitrust litigation. 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 fourth quarter and full year ended December 31, 2021 and 2020, the supplemental
financial data set forth below includes reconciliations of Adjusted
gross margin, Adjusted income from operations, Adjusted operating
margin, 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 fourth quarter of
2021 (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
|
|
$
1,619
|
|
$
1,772
|
|
52.3 %
|
|
$
1,113
|
|
$
725
|
|
21.4 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
|
(21)
|
|
21
|
|
|
|
(7)
|
|
28
|
|
|
Amortization of
intangibles
|
|
—
|
|
—
|
|
|
|
(33)
|
|
33
|
|
|
Stock
compensation
|
|
—
|
|
—
|
|
|
|
(4)
|
|
4
|
|
|
Restructuring and
integration costs
|
|
—
|
|
—
|
|
|
|
(57)
|
|
57
|
|
|
Productivity
|
|
(29)
|
|
29
|
|
|
|
(19)
|
|
48
|
|
|
Non-routine legal
matters
|
|
—
|
|
—
|
|
|
|
(7)
|
|
7
|
|
|
COVID-19
|
|
(4)
|
|
4
|
|
|
|
(2)
|
|
6
|
|
|
Transaction
costs
|
|
—
|
|
—
|
|
|
|
(1)
|
|
1
|
|
|
Malware
incident
|
|
—
|
|
—
|
|
|
|
(1)
|
|
1
|
|
|
Adjusted
|
|
$
1,565
|
|
$
1,826
|
|
53.8 %
|
|
$
982
|
|
$
910
|
|
26.8 %
|
|
Interest
expense
|
|
Gain on sale
of equity-
method
investment
|
|
Impairment of
investments
and note
receivable
|
|
Other
(income)
expense,
net
|
|
Income before
provision for
income taxes
|
|
Provision
for income
taxes
|
|
Effective
tax rate
|
|
Net income
attributable
to KDP
|
|
Diluted
earnings
per share
|
|
Reported
|
$
119
|
|
$
(524)
|
|
$
17
|
|
$
4
|
|
$
1,109
|
|
$
266
|
|
24.0 %
|
|
$
843
|
|
$
0.59
|
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(1)
|
|
—
|
|
—
|
|
(6)
|
|
35
|
|
10
|
|
|
|
25
|
|
0.02
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
—
|
|
33
|
|
5
|
|
|
|
28
|
|
0.02
|
|
Amortization of
deferred financing costs
|
(1)
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
|
1
|
|
—
|
|
Amortization of fair
value debt adjustment
|
(5)
|
|
—
|
|
—
|
|
—
|
|
5
|
|
2
|
|
|
|
3
|
|
—
|
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
1
|
|
|
|
3
|
|
—
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
57
|
|
12
|
|
|
|
45
|
|
0.03
|
|
Productivity
|
—
|
|
—
|
|
—
|
|
—
|
|
48
|
|
11
|
|
|
|
37
|
|
0.03
|
|
Impairment of
investment
|
—
|
|
—
|
|
(17)
|
|
—
|
|
17
|
|
(45)
|
|
|
|
62
|
|
0.04
|
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
—
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
2
|
|
|
|
5
|
|
—
|
|
COVID-19
|
—
|
|
—
|
|
—
|
|
—
|
|
6
|
|
1
|
|
|
|
5
|
|
—
|
|
Gain on sale of
equity-method investment
|
—
|
|
524
|
|
—
|
|
—
|
|
(524)
|
|
(124)
|
|
|
|
(400)
|
|
(0.28)
|
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|
|
1
|
|
—
|
|
Malware
incident
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
1
|
|
|
|
—
|
|
—
|
|
Change in deferred tax
liabilities related to
goodwill and other intangible assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18
|
|
|
|
(18)
|
|
(0.01)
|
|
Adjusted
|
$
112
|
|
$
—
|
|
$
—
|
|
$
(2)
|
|
$
800
|
|
$
160
|
|
20.0 %
|
|
$
640
|
|
$
0.45
|
|
|
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 fourth quarter of 2020
(Unaudited, in millions, except per share
data)
|
|
|
Cost of
sales
|
|
Gross
profit
|
|
Gross
margin
|
|
Selling, general
and
administrative expenses
|
|
Impairment of
intangible assets
|
|
Income from
operations
|
|
Operating
margin
|
Reported
|
$
1,353
|
|
$
1,768
|
|
56.6 %
|
|
$
1,000
|
|
$
67
|
|
$
700
|
|
22.4 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
31
|
|
(31)
|
|
|
|
23
|
|
—
|
|
(54)
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(33)
|
|
—
|
|
33
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(6)
|
|
—
|
|
6
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(56)
|
|
—
|
|
56
|
|
|
Productivity
|
(1)
|
|
1
|
|
|
|
(24)
|
|
—
|
|
25
|
|
|
Impairment on
intangible asset
|
—
|
|
—
|
|
|
|
—
|
|
(67)
|
|
67
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(14)
|
|
—
|
|
14
|
|
|
COVID-19
|
(6)
|
|
6
|
|
|
|
(5)
|
|
—
|
|
11
|
|
|
Adjusted
|
$
1,377
|
|
$
1,744
|
|
55.9 %
|
|
$
885
|
|
$
—
|
|
$
858
|
|
27.5 %
|
|
Interest
expense
|
|
Income before
provision for
income taxes
|
|
Provision for
income taxes
|
|
Effective tax
rate
|
|
Net income
attributable to KDP
|
|
Diluted earnings
per
share
|
Reported
|
$
146
|
|
$
558
|
|
$
130
|
|
23.3 %
|
|
$
428
|
|
$
0.30
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
1
|
|
(55)
|
|
(14)
|
|
|
|
(41)
|
|
(0.03)
|
Amortization of
intangibles
|
—
|
|
33
|
|
8
|
|
|
|
25
|
|
0.02
|
Amortization of
deferred financing costs
|
(3)
|
|
3
|
|
1
|
|
|
|
2
|
|
—
|
Amortization of fair
value debt adjustment
|
(6)
|
|
6
|
|
2
|
|
|
|
4
|
|
—
|
Stock
compensation
|
—
|
|
6
|
|
1
|
|
|
|
5
|
|
—
|
Restructuring and
integration costs
|
—
|
|
56
|
|
15
|
|
|
|
41
|
|
0.03
|
Productivity
|
—
|
|
25
|
|
6
|
|
|
|
19
|
|
0.01
|
Impairment on
intangible asset
|
—
|
|
67
|
|
15
|
|
|
|
52
|
|
0.04
|
Non-routine legal
matters
|
—
|
|
14
|
|
4
|
|
|
|
10
|
|
0.01
|
COVID-19
|
—
|
|
11
|
|
2
|
|
|
|
9
|
|
0.01
|
Adjusted
|
$
138
|
|
$
724
|
|
$
170
|
|
23.5 %
|
|
$
554
|
|
$
0.39
|
|
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 Year Ended December 31, 2021
(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
|
$
5,706
|
|
$
6,977
|
|
55.0 %
|
|
$
4,153
|
|
$
2,894
|
|
22.8 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
32
|
|
(32)
|
|
|
|
25
|
|
(57)
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(134)
|
|
134
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(18)
|
|
18
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(202)
|
|
202
|
|
|
Productivity
|
(72)
|
|
72
|
|
|
|
(91)
|
|
163
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(30)
|
|
30
|
|
|
COVID-19
|
(26)
|
|
26
|
|
|
|
(11)
|
|
37
|
|
|
Transaction
costs
|
—
|
|
—
|
|
|
|
(2)
|
|
2
|
|
|
Malware
incident
|
—
|
|
—
|
|
|
|
2
|
|
(2)
|
|
|
Adjusted
|
$
5,640
|
|
$
7,043
|
|
55.5 %
|
|
$
3,692
|
|
$
3,421
|
|
27.0 %
|
|
Interest
expense
|
|
Loss on early
extinguishment
of debt
|
|
Impairment of
investments and
note receivable
|
|
Gain on sale
of equity-
method
investment
|
|
Other
(income)
expense,
net
|
|
Income
before
provision for
income taxes
|
|
Provision
for
income
taxes
|
|
Effective
tax rate
|
|
Net income
attributable
to KDP
|
|
Diluted
earnings
per share
|
Reported
|
$
500
|
|
$
105
|
|
$
17
|
|
$
(524)
|
|
$
(2)
|
|
$
2,798
|
|
$
653
|
|
23.3 %
|
|
$
2,146
|
|
$
1.50
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
6
|
|
—
|
|
—
|
|
—
|
|
(6)
|
|
(57)
|
|
(13)
|
|
|
|
(44)
|
|
(0.03)
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
134
|
|
31
|
|
|
|
103
|
|
0.07
|
Amortization of
deferred financing costs
|
(7)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
2
|
|
|
|
5
|
|
—
|
Amortization of fair
value debt adjustment
|
(19)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19
|
|
5
|
|
|
|
14
|
|
0.01
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18
|
|
15
|
|
|
|
3
|
|
—
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
202
|
|
47
|
|
|
|
155
|
|
0.11
|
Productivity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
163
|
|
40
|
|
|
|
123
|
|
0.09
|
Impairment of
investment
|
—
|
|
—
|
|
(17)
|
|
—
|
|
—
|
|
17
|
|
(45)
|
|
|
|
62
|
|
0.04
|
Loss on early
extinguishment of debt
|
—
|
|
(105)
|
|
—
|
|
—
|
|
—
|
|
105
|
|
24
|
|
|
|
81
|
|
0.06
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
30
|
|
7
|
|
|
|
23
|
|
0.02
|
COVID-19
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
37
|
|
9
|
|
|
|
28
|
|
0.02
|
Gain on sale of
equity-method investment
|
—
|
|
—
|
|
—
|
|
524
|
|
—
|
|
(524)
|
|
(124)
|
|
|
|
(400)
|
|
(0.28)
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
|
|
2
|
|
—
|
Malware
incident
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
—
|
|
|
|
(2)
|
|
—
|
Change in deferred tax
liabilities related to
goodwill and other intangible assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
19
|
|
|
|
(19)
|
|
(0.01)
|
Adjusted
|
$
480
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(8)
|
|
$
2,949
|
|
$
670
|
|
22.7 %
|
|
$
2,280
|
|
$
1.60
|
|
|
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 Year Ended December 31, 2020
(Unaudited, in millions, except per share
data)
|
|
|
Cost of
sales
|
|
Gross
profit
|
|
Gross
margin
|
|
Selling, general
and
administrative
expenses
|
|
Impairment of
intangible assets
|
|
Income from
operations
|
|
Operating
margin
|
Reported
|
$
5,132
|
|
$
6,486
|
|
55.8 %
|
|
$
3,978
|
|
$
67
|
|
$
2,480
|
|
21.3 %
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
33
|
|
(33)
|
|
|
|
(5)
|
|
—
|
|
(28)
|
|
|
Amortization of
intangibles
|
—
|
|
—
|
|
|
|
(133)
|
|
—
|
|
133
|
|
|
Stock
compensation
|
—
|
|
—
|
|
|
|
(27)
|
|
—
|
|
27
|
|
|
Restructuring and
integration costs
|
—
|
|
—
|
|
|
|
(199)
|
|
—
|
|
199
|
|
|
Productivity
|
(29)
|
|
29
|
|
|
|
(99)
|
|
—
|
|
128
|
|
|
Impairment on
intangible asset
|
—
|
|
—
|
|
|
|
—
|
|
(67)
|
|
67
|
|
|
Non-routine legal
matters
|
—
|
|
—
|
|
|
|
(57)
|
|
—
|
|
57
|
|
|
COVID-19
|
(44)
|
|
44
|
|
|
|
(84)
|
|
—
|
|
128
|
|
|
Adjusted
|
$
5,092
|
|
$
6,526
|
|
56.2 %
|
|
$
3,374
|
|
$
—
|
|
$
3,191
|
|
27.5 %
|
|
Interest
expense
|
|
Loss on early
extinguishment
of debt
|
|
Impairment of
investments and
note receivable
|
|
Income before
provision for
income taxes
|
|
Provision
for income
taxes
|
|
Effective
tax rate
|
|
Net income
attributable to
KDP
|
|
Diluted
earnings
per
share
|
Reported
|
$
604
|
|
$
4
|
|
$
102
|
|
$
1,753
|
|
$
428
|
|
24.4 %
|
|
$
1,325
|
|
$
0.93
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark to
market
|
(27)
|
|
—
|
|
—
|
|
(1)
|
|
(1)
|
|
|
|
—
|
|
—
|
Amortization of
intangibles
|
—
|
|
—
|
|
—
|
|
133
|
|
35
|
|
|
|
98
|
|
0.07
|
Amortization of
deferred financing costs
|
(11)
|
|
—
|
|
—
|
|
11
|
|
3
|
|
|
|
8
|
|
0.01
|
Amortization of fair
value debt adjustment
|
(24)
|
|
—
|
|
—
|
|
24
|
|
6
|
|
|
|
18
|
|
0.01
|
Stock
compensation
|
—
|
|
—
|
|
—
|
|
27
|
|
5
|
|
|
|
22
|
|
0.02
|
Restructuring and
integration costs
|
—
|
|
—
|
|
—
|
|
199
|
|
49
|
|
|
|
150
|
|
0.11
|
Productivity
|
—
|
|
—
|
|
—
|
|
128
|
|
33
|
|
|
|
95
|
|
0.07
|
Impairment on
intangible asset
|
—
|
|
—
|
|
—
|
|
67
|
|
15
|
|
|
|
52
|
|
0.04
|
Loss on early
extinguishment of debt
|
—
|
|
(4)
|
|
—
|
|
4
|
|
1
|
|
|
|
3
|
|
—
|
Impairment of
investment
|
—
|
|
—
|
|
(102)
|
|
102
|
|
25
|
|
|
|
77
|
|
0.05
|
Non-routine legal
matters
|
—
|
|
—
|
|
—
|
|
57
|
|
14
|
|
|
|
43
|
|
0.03
|
COVID-19
|
—
|
|
—
|
|
—
|
|
128
|
|
31
|
|
|
|
97
|
|
0.07
|
Adjusted
|
$
542
|
|
$
—
|
|
$
—
|
|
$
2,632
|
|
$
644
|
|
24.5 %
|
|
$
1,988
|
|
$
1.40
|
|
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 fourth
quarter of 2021
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
Coffee
Systems
|
$
326
|
|
$
52
|
|
$
378
|
Packaged
Beverages
|
289
|
|
25
|
|
314
|
Beverage
Concentrates
|
266
|
|
5
|
|
271
|
Latin America
Beverages
|
38
|
|
—
|
|
38
|
Unallocated corporate
costs
|
(194)
|
|
103
|
|
(91)
|
Total income from
operations
|
$
725
|
|
$
185
|
|
$
910
|
|
|
|
|
|
|
For the fourth
quarter of 2020
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
Coffee
Systems
|
$
386
|
|
$
45
|
|
$
431
|
Packaged
Beverages
|
165
|
|
80
|
|
245
|
Beverage
Concentrates
|
253
|
|
1
|
|
254
|
Latin America
Beverages
|
32
|
|
1
|
|
33
|
Unallocated corporate
costs
|
(136)
|
|
31
|
|
(105)
|
Total income from
operations
|
$
700
|
|
$
158
|
|
$
858
|
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 year ended
December 31, 2021
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
Coffee
Systems
|
$
1,318
|
|
$
197
|
|
$
1,515
|
Packaged
Beverages
|
1,010
|
|
99
|
|
1,109
|
Beverage
Concentrates
|
1,044
|
|
11
|
|
1,055
|
Latin America
Beverages
|
133
|
|
2
|
|
135
|
Unallocated corporate
costs
|
(611)
|
|
218
|
|
(393)
|
Total income from
operations
|
$
2,894
|
|
$
527
|
|
$
3,421
|
|
|
|
|
|
|
For the year ended
December 31, 2020
|
|
|
|
|
|
Income from
Operations
|
|
|
|
|
|
Coffee
Systems
|
$
1,268
|
|
$
246
|
|
$
1,514
|
Packaged
Beverages
|
822
|
|
199
|
|
1,021
|
Beverage
Concentrates
|
932
|
|
6
|
|
938
|
Latin America
Beverages
|
105
|
|
3
|
|
108
|
Unallocated corporate
costs
|
(647)
|
|
257
|
|
(390)
|
Total income from
operations
|
$
2,480
|
|
$
711
|
|
$
3,191
|
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
attributable to KDP
|
$
2,146
|
Interest
expense
|
500
|
Provision for income
taxes
|
653
|
Other (income)
expense, net
|
(2)
|
Depreciation
expense
|
410
|
Other
amortization
|
164
|
Amortization of
intangibles
|
134
|
EBITDA
|
$
4,005
|
Items affecting
comparability:
|
|
Gain on sale of
equity-method investment
|
$
(524)
|
Loss on early
extinguishment of debt
|
105
|
Impairment of
investments and note receivable
|
17
|
Restructuring and
integration expenses
|
202
|
Productivity
|
138
|
Non-routine legal
matters
|
30
|
Stock
compensation
|
18
|
COVID-19
|
37
|
Transaction
costs
|
2
|
Malware
incident
|
(2)
|
Mark to
market
|
(57)
|
Adjusted
EBITDA
|
$
3,971
|
|
|
|
December
31,
|
|
2021
|
Principal amounts
of:
|
|
Commercial paper
notes
|
$
149
|
Senior unsecured
notes
|
11,875
|
Total principal
amounts
|
12,024
|
Less: Cash and cash
equivalents
|
567
|
Total principal
amounts less cash and cash equivalents
|
$
11,457
|
|
|
December 31, 2021
Management Leverage Ratio
|
2.9
|
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 years
ended December 31, 2020 and 2019,
there were no certain items excluded for comparison to prior year
periods.
|
|
Year Ended
December 31,
|
(in
millions)
|
|
2021
|
|
2020
|
Net cash provided
by operating activities
|
|
$
2,874
|
|
$
2,456
|
Purchases of property,
plant and equipment
|
|
(423)
|
|
(461)
|
Proceeds from sales of
property, plant and equipment
|
|
122
|
|
203
|
Free Cash
Flow
|
|
$
2,573
|
|
$
2,198
|
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.
|
|
Coffee
Systems
|
|
Packaged
Beverages
|
|
Beverage
Concentrates
|
|
Latin
America
Beverages
|
|
Total
|
For the fourth
quarter of 2021
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
(0.2)%
|
|
17.1%
|
|
9.2%
|
|
11.8%
|
|
8.7%
|
Impact of foreign
currency
|
|
(0.3)%
|
|
(0.1)%
|
|
(0.3)%
|
|
0.7%
|
|
(0.2)%
|
Net sales, as
adjusted to currency neutral
|
|
(0.5)%
|
|
17.0%
|
|
8.9%
|
|
12.5%
|
|
8.5%
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
6.4%
|
|
9.7%
|
|
12.2%
|
|
20.5%
|
|
9.2%
|
Impact of foreign
currency
|
|
(0.8)%
|
|
(0.2)%
|
|
(0.5)%
|
|
(6.4)%
|
|
(0.8)%
|
Net sales, as
adjusted to currency neutral
|
|
5.6%
|
|
9.5%
|
|
11.7%
|
|
14.1%
|
|
8.4%
|
|
|
Coffee
Systems
|
|
Packaged
Beverages
|
|
Beverage
Concentrates
|
|
Latin
America
Beverages
|
|
Total
|
For the fourth
quarter of 2021
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from
operations
|
|
(12.3)%
|
|
28.2%
|
|
6.7%
|
|
15.2%
|
|
6.1%
|
Impact of foreign
currency
|
|
—%
|
|
(0.4)%
|
|
(0.4)%
|
|
3.0%
|
|
(0.2)%
|
Adjusted income from
operations, as adjusted
to currency neutral
|
|
(12.3)%
|
|
27.8%
|
|
6.3%
|
|
18.2%
|
|
5.9%
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31, 2021
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from
operations
|
|
0.1%
|
|
8.6%
|
|
12.5%
|
|
25.0%
|
|
7.2%
|
Impact of foreign
currency
|
|
(0.5)%
|
|
(0.3)%
|
|
(0.6)%
|
|
(5.6)%
|
|
(0.7)%
|
Adjusted income from
operations, as adjusted
to currency neutral
|
|
(0.4)%
|
|
8.3%
|
|
11.9%
|
|
19.4%
|
|
6.5%
|
|
|
Fourth Quarter
of
2021
|
|
Year Ended
December 31,
2021
|
Adjusted diluted
earnings per share
|
|
$
0.45
|
|
$
1.60
|
Impact of foreign
currency
|
|
—
|
|
(0.01)
|
Adjusted diluted
earnings per share, as adjusted to currency neutral
|
|
$
0.45
|
|
$
1.59
|
The following table sets forth our reconciliation of significant
COVID-19-related expenses. However, employee compensation expense
and employee protection costs, which impact our SG&A expenses
and cost of sales, are included as the COVID-19 item affecting
comparability and are excluded in our Adjusted financial measures.
In addition, reported amounts under U.S. GAAP also include
additional costs, not included as the COVID-19 item affecting
comparability, as presented in tables below.
|
|
|
|
|
|
|
|
|
|
|
Items Affecting
Comparability(1)
|
|
|
|
|
|
|
(in
millions)
|
Employee
Compensation
Expense(2)
|
|
Employee
Protection
Costs(3)
|
|
Allowances
for Expected
Credit
Losses(4)
|
|
Inventory
Write-
Downs(5)
|
|
Total
|
For the fourth
quarter of 2021
|
|
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
1
|
|
$
2
|
|
$
—
|
|
$
—
|
|
$
3
|
Packaged
Beverages
|
1
|
|
1
|
|
—
|
|
—
|
|
2
|
Beverage
Concentrates
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Latin America
Beverages
|
—
|
|
1
|
|
—
|
|
—
|
|
1
|
Total
|
$
2
|
|
$
4
|
|
$
—
|
|
$
—
|
|
$
6
|
|
|
|
|
|
|
|
|
|
|
For the fourth
quarter of 2020
|
|
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
1
|
|
$
3
|
|
$
—
|
|
$
—
|
|
$
4
|
Packaged
Beverages
|
3
|
|
3
|
|
—
|
|
—
|
|
6
|
Beverage
Concentrates
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Latin America
Beverages
|
—
|
|
1
|
|
—
|
|
—
|
|
1
|
Total
|
$
4
|
|
$
7
|
|
$
—
|
|
$
—
|
|
$
11
|
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31,
2021
|
|
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
4
|
|
$
16
|
|
$
(2)
|
|
$
—
|
|
$
18
|
Packaged
Beverages
|
8
|
|
7
|
|
(8)
|
|
—
|
|
7
|
Beverage
Concentrates
|
—
|
|
—
|
|
(3)
|
|
—
|
|
(3)
|
Latin America
Beverages
|
—
|
|
2
|
|
—
|
|
—
|
|
2
|
Total
|
$
12
|
|
$
25
|
|
$
(13)
|
|
$
—
|
|
$
24
|
|
|
|
|
|
|
|
|
|
|
For the year ended
December 31,
2020
|
|
|
|
|
|
|
|
|
|
Coffee
Systems
|
$
15
|
|
$
10
|
|
$
2
|
|
$
8
|
|
$
35
|
Packaged
Beverages
|
76
|
|
25
|
|
8
|
|
—
|
|
109
|
Beverage
Concentrates
|
—
|
|
—
|
|
4
|
|
—
|
|
4
|
Latin America
Beverages
|
—
|
|
2
|
|
—
|
|
—
|
|
2
|
Total
|
$
91
|
|
$
37
|
|
$
14
|
|
$
8
|
|
$
150
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Employee compensation
expense and employee protection costs are both included as the
COVID-19 items affecting comparability in the reconciliation of our
Adjusted Non-GAAP financial measures.
|
(2)
|
In 2021, primarily
included incremental benefits provided to frontline workers such as
extended sick leave, in order to maintain essential operations
during the COVID-19 pandemic. In 2020, primarily reflected
temporary incremental frontline incentive pay and benefits, as well
as pay for temporary employees, including the associated taxes.
Impacts both cost of sales and SG&A expenses.
|
(3)
|
Included costs
associated with personal protective equipment, temperature scans,
cleaning and other sanitization services. Impacts both cost of
sales and SG&A expenses.
|
(4)
|
In 2020, allowances
reflected the expected impact of the economic uncertainty caused by
COVID-19, leveraging estimates of credit worthiness, default and
recovery rates for certain of our customers. In 2021, reversals of
those allowances reflect improving economic conditions. Impacts
SG&A expenses.
|
(5)
|
Impacts cost of
sales.
|
RECONCILIATION OF CERTAIN ADJUSTED FINANCIAL
RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2019
(Unaudited, in
millions, except per share data)
For the purposes of additional analysis, we have also included
certain non-GAAP financial measures for the year ended December 31, 2019.
For the year ended December 31,
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.
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; (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 and the associated windfall tax benefit
attributable to the matching awards made to employees who made an
initial investment in KDP; and (vi) other certain items that are
excluded for comparison purposes to prior year periods.
For the year ended December 31,
2019, the other certain items excluded for comparison
purposes include (i) restructuring and integration expenses related
to significant business combinations; (ii) productivity expenses;
(iii) transaction costs for significant business combinations
(completed or abandoned) not associated with the DPS Merger; (iv)
costs related to significant non-routine 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.
|
|
Net
Sales
|
|
Income from
operations
|
|
Diluted earnings
per share
|
Reported
|
|
$
11,120
|
|
$
2,378
|
|
$
0.88
|
Items Affecting
Comparability:
|
|
|
|
|
|
|
Mark to
market
|
|
—
|
|
(45)
|
|
—
|
Amortization of
intangibles
|
|
—
|
|
126
|
|
0.06
|
Amortization of
deferred financing costs
|
|
—
|
|
—
|
|
0.01
|
Amortization of fair
value debt adjustment
|
|
—
|
|
—
|
|
0.01
|
Stock
compensation
|
|
—
|
|
24
|
|
0.01
|
Restructuring and
integration costs
|
|
—
|
|
242
|
|
0.13
|
Productivity
|
|
—
|
|
97
|
|
0.05
|
Transaction
costs
|
|
—
|
|
9
|
|
0.01
|
Inventory
step-up
|
|
—
|
|
3
|
|
—
|
Loss on early
extinguishment of debt
|
|
—
|
|
—
|
|
0.01
|
Nonroutine legal
matters
|
|
—
|
|
48
|
|
0.02
|
Malware
incident
|
|
—
|
|
8
|
|
—
|
Adjusted
|
|
$
11,120
|
|
$
2,890
|
|
$
1.22
|
|
Diluted earnings
per common share may not foot due to rounding.
|
RECONCILIATION OF CURRENCY NEUTRAL FINANCIAL
RESULTS
FOR THE YEAR ENDED DECEMBER 31, 2021 COMPARED TO THE YEAR ENDED
DECEMBER 31,
2019
(Unaudited)
Net sales as adjusted to currency neutral: This adjusted
financial result is calculated on a currency neutral basis by
converting our local currency net sales for the year ended
December 31, 2021 using the foreign
currency exchange rates from the year ended December 31, 2019.
|
|
Growth
(%)
|
Net sales growth
compared to the year ended December 31, 2019
|
|
14.1%
|
Impact of foreign
currency
|
|
(0.2)%
|
Net sales growth
compared to the year ended December 31, 2019, as adjusted to
currency neutral
|
|
13.9%
|
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SOURCE Keurig Dr Pepper Inc.