Earnings Summary: Keurig Dr Pepper Q3 FY25 earnings grow on higher revenues

Beverage company Keurig Dr Pepper (NYSE: KDP) on Monday announced financial results for the third quarter of fiscal 2025, reporting an increase in revenue and adjusted net income.

• Third-quarter net sales increased 10.7% from last year to $4.3 billion; on a constant currency basis, sales rose 10.6%
• The company achieved a volume/mix growth of 6.4% and net price realization of 4.2% during the quarter
• Net income increased 7.5% year-over-year to $662 million, or $0.49 per diluted share, in the September quarter
• On an adjusted basis, Q3 net income increased 6.5% to $738 million; adjusted earnings per share rose 5.9% to $0.54
• At $995 million, Q3 operating income was up 10.3% YoY; adjusted operating income rose 3.8% to $1,091 million
• Operating cash flow for the third quarter was $639 million; free cash flow totaled $528 million
• The management expects fiscal 2025 constant currency net sales growth in a high-single-digit range
• The guidance for full-year adjusted earnings per share growth is in a high-single-digit range
• At current rates, foreign currency translation is forecasted to approximate a one-half of one percentage point headwind to full-year top- and bottom-line growth