EPS of $0.38 increased by 15.2% from previous year
Gross margin of 52.4%
Net income of 517.00M
"Not available due to missing earnings transcript." -
Keurig Dr Pepper Inc (0Z62.L) QQ1 2025 Results — Revenue Growth, Margin Stability and Cash Flow Amid High Intangibles
Executive Summary
Keurig Dr Pepper (0Z62.L) delivered a resilient QQ1 2025 with revenue of $3.6355 billion, up 4.82% year-over-year, and a solid gross margin of 52.4%. Despite a -10.7% quarter-on-quarter revenue drop, the company posted an operating margin of 21.2% and a net margin of 14.2%, driven by stable pricing, favorable mix, and ongoing cost discipline. Net income reached $517 million and diluted EPS was $0.38, supported by EBITDA of $942 million. Free cash flow was modest at $89 million, with operating cash flow of $209 million and capital expenditures of $120 million, reflecting disciplined capital allocation and a cash conversion cycle that benefits from extended payables terms.
Key Performance Indicators
Revenue
3.64B
QoQ: -10.69% | YoY:4.82%
Gross Profit
1.91B
52.41% margin
QoQ: -16.34% | YoY:-0.10%
Operating Income
771.00M
QoQ: 1 123.81% | YoY:0.92%
Net Income
517.00M
QoQ: 459.03% | YoY:13.88%
EPS
0.38
QoQ: 445.45% | YoY:15.15%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $3.635B (+4.82% YoY; -10.69% QoQ)
Gross Profit: $1.905B; Gross Margin: 52.4%
Operating Income: $771M; Operating Margin: 21.2%
Net Income: $517M; Net Margin: 14.2%
EPS: $0.38 (diluted)
Financial Highlights
- Revenue: $3.635B (+4.82% YoY; -10.69% QoQ)
- Gross Profit: $1.905B; Gross Margin: 52.4%
- Operating Income: $771M; Operating Margin: 21.2%
- Net Income: $517M; Net Margin: 14.2%
- EPS: $0.38 (diluted)
- EBITDA: $942M; EBITDA Margin: 25.9%
- OCF: $209M; Capex: $120M; FCF: $89M
- Free Cash Flow per Share: $0.0656; OCF per Share: $0.154
- Dividend Payout: 60.3% of earnings; Dividend Yield: 0.672%
- Cash: End of period $0.751B; Debt: $17.638B; Net Debt: $16.985B
- Current Ratio: 0.474; Quick Ratio: 0.306; Cash Ratio: 0.0712
- ROE: 2.11%; ROA: 0.96%; Interest Coverage: 6.48
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.64B
4.82%
-10.69%
Gross Profit
1.91B
-0.10%
-16.34%
Operating Income
771.00M
0.92%
1 123.81%
Net Income
517.00M
13.88%
459.03%
EPS
0.38
15.15%
445.45%
Key Financial Ratios
currentRatio
0.47
grossProfitMargin
52.4%
operatingProfitMargin
21.2%
netProfitMargin
14.2%
returnOnAssets
0.96%
returnOnEquity
2.11%
debtEquityRatio
0.72
operatingCashFlowPerShare
$0.15
freeCashFlowPerShare
$0.07
dividendPayoutRatio
60.3%
priceToBookRatio
1.9
priceEarningsRatio
22.46
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the inputs. Consequently, there are no management-highlighted quotes available in this dataset.
Not available due to missing earnings transcript.
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Not available due to missing earnings transcript.
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Forward Guidance
No formal forward guidance was provided in the supplied data for QQ1 2025. Investors should consider management’s emphasis on pricing actions and cost discipline as potential catalysts for margin stability, alongside ongoing portfolio optimization and international growth—particularly in Latin America. In the absence of explicit guidance, the outlook hinges on the company’s ability to sustain top-line growth through price realization and favorable mix while maintaining disciplined capital allocation in a high-debt environment. Key factors to monitor include input cost dynamics, commodity price volatility, foreign exchange exposure in Latin America, debt maturities, and any incremental share repurchases or dividend policy updates.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0Z62.L Focus
52.41%
21.20%
2.11%
22.46%
0J4X.L
33.70%
13.20%
4.79%
38.66%
0JT5.L
48.00%
30.30%
13.20%
23.65%
0L8A.L
48.10%
25.90%
3.94%
18.96%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Base-case: Keurig Dr Pepper demonstrates resilient profitability with stable margins and positive, if modest, free cash flow. The quarter shows YoY revenue growth and solid profitability despite a QoQ decline, suggesting seasonality and base effects. Upside hinges on successful price realization, continued cost discipline, and progress in LatAm expansion, offset by a high debt burden and liquidity constraints. Bull case would require stronger cash generation, potential debt reduction, and favorable FX impacts; bear case would reflect sustained liquidity pressure and potential impairment risk given the heavy intangible base.
Key Investment Factors
Growth Potential
Diversified portfolio across Coffee Systems, Packaged Beverages, Beverage Concentrates, and LatAm Beverages provides multiple growth vectors. LatAm exposure (Penafiel, Clamato, Squirt, Dr Pepper Crush, Aguafiel) offers international growth potential and pricing opportunities as emerging markets recover and bundles of value-oriented beverages gain traction.
Profitability Risk
High leverage with net debt of $16.99B; liquidity constraints indicated by current ratio of 0.474 and cash ratio of 0.0712; sensitivity to input costs and currency fluctuations in LatAm; competitive pressure from large beverage peers; regulatory/health-driven changes impacting product mix and pricing.
Financial Position
Robust EBITDA and consistent free cash flow generation exist within a high-intangible framework (Goodwill and Intangibles total ~$43.68B). The balance sheet shows strong equity ($24.45B) but relatively heavy near-term debt maturities and limited liquidity buffers, suggesting a cautious approach to leverage management and capital allocation.