Keurig Dr Pepper Inc. (KDP) Q4 2022 Earnings Call Transcript

Keurig Dr Pepper Inc. (NASDAQ:KDP) Q4 2022 Earnings Conference Call February 23, 2023 8:00 AM ET

Company Participants

Maria Sceppaguercio - Chief Corporate Affairs Officer

Robert Gamgort - Chairman and Chief Executive Oficer

Sudhanshu Priyadarshi - Chief Financial Officer

Conference Call Participants

Chris Carey - Wells Fargo Securities

Bryan Spillane - Bank of America

Kevin Grundy - Jefferies

Lauren Lieberman - Barclays

Brett Cooper - Consumer Edge Research

Bonnie Herzog - Goldman Sachs

Filippo Falorni - Citi

Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Keurig Dr Pepper’s Earnings Call for the Fourth Quarter and Full-Year of 2022. This conference call is being recorded and there will be a question-and-answer session at the end of the call.

I would now like to introduce Keurig Dr Pepper’s Chief Corporate Affairs Officer, Maria Sceppaguercio. Ms. Sceppaguercio, please go ahead.

Maria Sceppaguercio

Thank you. And hello everyone. Earlier this morning we issued a press release for the fourth quarter. Consistent with previous quarters, we’ll be discussing our performance on an adjusted basis, which reflects constant currency growth rates and excludes items affecting comparability.

The company believes that the adjusted basis provides investors with additional insight into our business and operating performance trends. While the exclusion of items affecting comparability and the use of constant currency growth rates are not in accordance with GAAP. We believe that the adjusted basis provides meaningful comparisons and an appropriate basis for discussion of our performance. Details of the excluded items are provided in the reconciliation tables included in our press release and our 10-Q, which will be filed later today. Due to the inability to predict the amount and timing of certain impacts outside of the company’s control, we do not reconcile our guidance.

Today, we will also speak to the concept of underlying performance, which removes the impact of previously disclosed non-operational items. In ’22, these items included gains on asset sale leasebacks, reimbursement of litigation expenses related to BodyArmor, a business interruption insurance recovery and a change in accounting policy for stock compensation.

Here with us today to discuss our results are KDP Chairman and CEO, Bob Gamgort, and our Chief Financial Officer, Sudhanshu Priyadarshi. Also with us this morning is the IR team, including Jane Gelfand, who we are excited to welcome this week as our new Vice President of Investor Relations and Strategic Initiatives. I'm confident that many of you know Jane from her time on the street, as well as her most recent role at Wayfair, where she led a number of finance functions including Investor Relations and Treasury. Jane is replacing Steve Alexander, who after more than 16 successful years in finance, commercial and IR with KDP and predecessor companies has decided to take some time off for family and travel. We are pleased that Steve has agreed to stay on to April to support the transition.