Keurig Dr Pepper’s QQ4 2024 results show a resilient top line with revenue of $4.07 billion, up 5.25% year over year and 4.60% quarter over quarter. Gross profit expanded to $2.278 billion, yielding a gross margin of approximately 55.9%. However, the quarter delivered a net loss of $144 million and negative earnings per share of $0.11, driven by a substantial load of other expenses and net non-operating items that more than offset EBITDA of $276 million and an operating income of $63 million. This combination underscores ongoing profitability pressures even as the company’s cash-generation capabilities remain solid on a operating basis.
From a liquidity and cash flow perspective, Keurig Dr Pepper generated $849 million in operating cash flow and $674 million in free cash flow, with capital expenditures totaling $175 million. Balance-sheet metrics show a cash balance of about $608 million and net debt of roughly $16.8 billion, reflecting a leveraged capital structure that continues to be a focal point for investors. While the business exhibits strong brand breadth and distribution scale, near-term profitability hinges on improving operating leverage, managing input costs, and executing on pricing and mix to offset elevated other expenses. The outlook will hinge on management’s ability to drive sustainable margin expansion while continuing to deploy cash flow toward deleveraging and shareholder-friendly activity.