Keurig Dr Pepper Inc. (NASDAQ:KDP) Q3 2024 Earnings Call October 24, 2024 8:00 AM ET

Company Participants

Jane Gelfand - Head, Investor Relations
Tim Cofer - Chief Executive Officer
Sudhanshu Priyadarshi - Chief Financial Officer and President, International

Conference Call Participants

Kaumil Gajrawala - Jefferies
Brett Cooper - Consumer Edge Research
Dara Mohsenian - Morgan Stanley
Chris Carey - Wells Fargo Securities
Robert Ottenstein - Evercore

Operator

Good morning, ladies and gentlemen and thank you for standing by. Welcome to Keurig Dr Pepper’s Earnings Call for the Third Quarter of 2024. This conference call is being recorded. [Operator Instructions] I would now like to introduce Keurig Dr Pepper’s Head of Investor Relations, Jane Gelfand. Ms. Gelfand, you may please begin.

Jane Gelfand

Thank you and hello everyone. Earlier this morning, we issued two separate press releases announcing third quarter results and our pending transaction with GHOST. We will discuss both topics during this conference call and in the accompanying slide presentation, which can be tracked in real time on the live webcast.

Before we get started, I’d like to remind you that our remarks will include forward-looking statements, which reflect KDP’s judgment, assumptions and analysis only as of today. Our actual results may differ materially from current expectations based on a number of factors affecting KDP’s business. Except as required by law, we do not undertake any obligation to update any forward-looking statements discussed today. For more information, please refer to our earnings release and the risk factors discussed in our most recent Forms 10-K and 10-Q filed with the SEC.

Consistent with previous quarters, we will be discussing our Q3 performance on a non-GAAP adjusted basis, which reflects constant currency growth rates and excludes items affecting comparability. Definitions and reconciliations to the most directly comparable GAAP metrics are included in our earnings materials.

Here with us today to discuss our results are Keurig Dr Pepper’s Chief Executive Officer, Tim Cofer; and Chief Financial Officer and President, International, Sudhanshu Priyadarshi. I’ll now turn it over to Tim.

Tim Cofer

Thanks, Jane and good morning, everyone. Our solid 2024 year-to-date performance demonstrates KDP’s resiliency and flexibility. This morning, we reaffirmed our full year outlook despite an uneven operating environment. And we are targeting a strong finish to the year in Q4. Simultaneously, we are making good progress against our long-term strategy, laying the groundwork for multiyear success.

Now, before covering our quarterly results, I want to highlight the just announced GHOST deal as yet another example of how we are enhancing our portfolio while exercising capital discipline. We have reached an agreement to purchase a majority stake in GHOST this year to be followed by the acquisition of the remainder of the business in the first half of ‘28. This transaction strengthens our position in the attractive energy drink category and accelerates our portfolio evolution towards consumer preferred and growth accretive spaces.