Keurig Dr Pepper : Presentation (image/Q1 2026 Earnings Presentation vF)

Published: 2026-04-23 07:58:13 ET KDP

Published on 04/23/2026 at 07:58 am EDT

April 23, 2026

Business Update

Results & Outlook

Q&A

Tim Cofer

Chief Executive Officer

Anthony DiSilvestro

Chief Financial Officer

Business Update

Tim Cofer

Chief Executive Officer

Q1 results slightly ahead of expectations

Steady progress on transformation initiatives

On track to deliver 2026 commitments

Separation to establish two advantaged pure-plays

Beverage Co.

Global Coffee Co.

Strong and self-sustaining organic growth

Steady and resilient growth and cash flow

Advantaged portfolio and route-to-market

Power in brands, system, and global reach

Strategic optionality

Combined revenue and cost opportunities

Entrepreneurial culture

Deep and focused coffee expertise

TIM COFER

CEO, KDP

Future CEO, Beverage Co.

RAFA OLIVEIRA

Future CEO, Global Coffee Co.

Interim operating model to support execution & readiness

KDP Leadership Team

Enterprise Delivery & Transformation Oversight

Operating Units

Operating Plan Execution & Strategic Direction Shaping

Beverage Operating Unit

Coffee Operating Unit

Net sales growth of 8%,

led by U.S. Refreshment Beverages and International

Balanced growth drivers,

with positive net price and volume/mix contributions

EPS decline vs. prior year, as expected,

due to cost phasing and lapping a year-ago gain

Visibility to strengthening go-forward EPS growth,

reflecting legacy KDP acceleration & JDE Peet's accretion

9 All financial metrics presented on an adjusted, constant currency basis.

Q1 Segment Highlights

Robust top- & bottom-line growth

Solid trends in core CSD business

Continued momentum in energy & sports hydration

Q1 Segment Highlights

Healthy coffee category & Keurig ecosystem trends

Impacts from temporary cost pressures

Continued investment behind long-term growth initiatives

Q1 Segment Highlights

Strong pricing-led sales growth

Resilient consumer demand with

good share trends across key categories

Impacts from inflation and investment spending

Deliver

low-double-digit EPS growth1

Unlock initial JDE Peet's

combination benefits

Prepare pure play companies for standalone success

13 1 Low-double-digit Adjusted EPS growth inclusive of JDE Peet's.

Anthony DiSilvestro

Chief Financial Officer

Constant currency

NET SALES ($B) ADJ. OPERATING INCOME ($M) ADJUSTED EPS ($ PER SHARE)

$4.0

8.1%

YoY

$3.6

$847

(1.9%)

$838

YoY

$0.42

(7.1%)

YoY

$0.39

Q1'25 Q1'26

23.3%

21.1%

Adjusted OI Margin

15 Financial metrics presented on an adjusted basis. Growth rates presented on an adjusted basis and in constant currency. Including the impact of currency, net sales grew 9.4%, adjusted operating income declined (1.1%), and adjusted EPS declined (7.1%).

Q1 2026

Change

Net Sales

$2.6B

11.9%

Adjusted Operating Income

$742M

9.8%

Adjusted Operating Margin

28.5%

(0.6pts)

Net sales increased 11.9%, with volume/mix adding 7.2% and net price realization contributing 4.7%

Sales growth led by CSDs, energy, and sports hydration

Operating income growth driven by net sales gains and productivity, partially offset by inflation and higher marketing

16 All financial metrics presented on an adjusted, constant currency basis.

Q1 2026

Change

Net Sales

$857M

(2.3%)

Adjusted Operating Income

$199M

(21.3%)

Adjusted Operating Margin

23.2%

(5.6pts)

Net sales declined (2.3%), with a volume/mix decrease of (8.2%), partially offset by net price realization of 5.9%

Volume/mix decline driven by price elasticity and trade inventory adjustments

Operating income decline driven by cost pressures, pod shipment decrease, and higher marketing, partially offset by pricing and productivity

17 All financial metrics presented on an adjusted, constant currency basis.

Q1 2026

Change

Net Sales

$520M

8.5%

Adjusted Operating Income

$87M

(15.1%)

Adjusted Operating Margin

16.7%

(4.7pts)

Net sales increased 8.5%, with net price realization adding 9.2%, partially offset by a volume/mix decline of (0.7%)

Sales growth led by Peñafiel and K-Cup pods

Operating income decline driven by cost pressures, including the Mexico beverage tax, and higher marketing, partially offset by pricing and productivity

Financial metrics presented on an adjusted basis. Growth rates presented on an adjusted basis and in constant currency Including the impact of currency, net sales increased 19.5%, adjusted operating income declined (6.5%),

and adjusted operating margin compressed (4.7 pts).

Key Takeaways

Focus on continued debt paydown: cash flow as primary driver, but also evaluating non-core asset monetization opportunities

Strong cash generation: ~$2.5B in expected '26 free cash flow (including JDEP), up from $1.5B in '25

Resilient, optimized post-deal capital structure: ~4.5x post-deal leverage1

Committed to strong balance sheet and investment grade ratings

For KDP and future Beverage Co. and Global Coffee Co.

19 1Management leverage is estimated on a pro forma TTM basis as of Q2 2026

$1.13-1.16B Interest Expense

~22% Tax Rate

~1.37B Diluted Shares Outstanding

~190M Pre-Tax Coffee JV Cost

Convertible Preferred Cost as Greater of:

~$53M Quarterly Preferred Dividend3 or

~8% Proportionate Share of Earnings3

Net Sales Growth (Constant FX) Other Items

$25.9-$26.4B

4-6% legacy KDP growth (const. FX)

$8.5-$8.7B JDE Peet's net sales1

Adjusted EPS Growth (Constant FX)

Low-Double-Digit%

4-6% legacy KDP growth (const. FX)

+6-7pts JDE Peet's contribution1

~1pt FX tailwind

Top-line and EPS benefit to legacy KDP growth2

JDE Peet's contribution based on April 1 close and calculated using current exchange rates.

FX tailwind based on current exchange rate outlook.

Pre-separation, expect the calculation to default to the proportionate share of earnings.

Tim Cofer

Chief Executive Officer

Disclaimer

Keurig Dr Pepper Inc. published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 11:57 UTC.