Continued to navigate the evolving macro challenges presented by COVID-19 and prioritize and invest in the health and safety of employees. Also contributing to growth was the favorable year-over-year impact of items affecting comparability, including lower COVID-related costs and comparison to a non-cash impairment charge in the year-ago period.
The free cash flow performance, combined with pre-tax cash proceeds of$576 millionfrom the sale of the Company's equity interest in BodyArmor, enabled KDP to reduce total financial obligations by$1.73 billionin 2021 and end the year with$567 millionof unrestricted cash on hand. When compared to end of 2020 debt schedule, notes due in next year (2021) were extended to low rate notes due in 2024 as well as long duration notes due in 2031 and 2051.
GAAP operating income for the full year increased 12.0% to$1.04 billion, compared to$0.93 billionin the year-ago period, reflecting the higher net sales, partially offset by significantly higher marketing investment and a slightly unfavorable year-over-year impact of items affecting comparability. Within its beverages portfolio, carbonated soft drinks (CSDs) grew in retail dollar consumption by 26% and gained 1.5 share points since 2019 putting KDP in the #2 share position for CSDs in the grocery channel in 2021, said CEO Bob Gamgort on the company's Q4 2021 earnings call. We head into 2022 with confidence in the stronger, faster-growing business we have built, poised to continue to drive outsized long-term value creation in an environment that we expect to remain challenging for some time. The reason for this improvement was twofold: Even as KDP sales grew from $11.1bn in 2019 to $12.7bn in 2021, selling, general and administrative expenses grew by less than $200m - from $4.0bn to $4.2bn. If you have an ad-blocker enabled you may be blocked from proceeding. On a two-year basis, constant currency net sales advanced 13.9% versus 2019.. KDP in-market performance in the Liquid Refreshment Beverages (LRB) category remained strong for the year, with retail dollar consumption2advancing 8.4% versus prior year across the Company's cold beverage retail base, largely reflecting strength in CSDs3, premium unflavored water, coconut water, apple juice, and apple sauce. 1Adjusted financial metrics used in this release are non-GAAP. Keurig Dr Pepper: Under-Owned And Well-Positioned To Compete. The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. var vOut = ""; These positive drivers were partially offset by inflation and the significant increase in marketing investment. Deliver wholesome products with sustainable ingredients. With a free cash flow yield on a trailing twelve month basis of 4.6%, the gap between KDP and the rest of the peers is still quite high. On a constant currency basis, net sales increased 8.4%, driven by higher volume/mix of 5.7% and favorable net price realization of 2.7%. Related tags: On a percent of net sales basis, Adjusted operating income was 18.9% in 2021, compared to 19.0% in the prior year, reflecting the strong growth in net sales offset by the combined impacts of inflation, increased marketing investment and higher costs to meet consumer demand, which were not fully offset by productivity. On a two-year basis, KDP gained market share in 77% of its cold beverage retail base and grew consumption of its cold beverage portfolio by 22%. In addition to business expansion, KDP also improved its return on tangible assets over the last year. Will We Care About It Now?
Derek Hopkins, president of cold beverages, will leave the company at the end of the year for personal and family reasons. Since the close of the merger inJuly 2018, KDP's management leverage ratio declined by 3.1x. In addition, the Company's management leverage ratio declined to 2.9x at the end of 2021, compared to 3.6x at the end of 2020. Net sales for the full year of 2021 increased 9.7% to$5.88 billion, compared to$5.36 billionin the year-ago period.
The net price realization reflected continued moderation in strategic pod pricing and customer fines stemming from challenged service levels in the fourth quarter of 2021, only partially offset by the benefit of list price increases on owned and licensed pods and brewers which were implemented late in the year., The volume/mix growth of 6.5% reflected pod volume growth of 5.6% and exceptionally strong brewer volume growth of 10% that successfully lapped the 21% growth in brewer volume in the prior year. Added nearly three million new U.S. households to the Keurig system, bringing total Keurig households to almost 36 million, reflecting successful brewer innovation including the Keurig Supreme Plus Smart KDP's first connected brewer launch. NasdaqGS - NasdaqGS Real Time Price.
Bank of Japan Should Stop Meddling in Financial Markets, A Chef Tackles Inequality by Opening Farms in Black Communities, The US Has Lost Its Way on Computer Chips, Macau Casino Crash Shifts Worlds Gambling Crown to Las Vegas, Despite Abes Push, Women Still Largely Absent From Japan Boards, Planned Parenthood Workers at 28 Clinics Vote to Unionize, Trucker Protest Keeps Dockworkers From Work at Key California Hub, Biden Balked Late at Bold Climate Decree After Rush to Get Ready, EDF Asks UK to Trigger Force Majeure in Hinkley Nuclear Contract, Why Neighborhoods and Small Businesses Thrive in Tokyo, Pennsylvania County Could Become First to Divest From Wells Fargo Over Abortion, Boston Train Fire Adds to Troubled Safety Record atTransit Agency, Crypto Crash Be Damned, Some Workers Still Choose Digital Pay, Indonesia Plans Wholesale Digital Currency to Improve Transfers. KDP manufactured share remained strong, advancing 60 basis points to 83.5% in the quarter. % Despite its consistent, solid growth in the past year, Gamgort said the company has a more conservative outlook for 2022 as it grapples with significant operational challenges. As I highlighted in my thought piece "Keurig Dr Pepper: Under-Owned And Well-Positioned To Compete", one of the major risks for the company is its high debt level. Adjusted operating income for the full year of 2021 increased 7.2% to$3.42 billion, compared to$3.19 billionin the year-ago period and, on a constant currency basis, Adjusted operating income grew 6.5%.
2Market share and retail consumption data based on Keurig Dr Pepper's custom IRi category definitions for the 13-week and 52-week periods ending 12/26/2021. On a two-year basis, Adjusted diluted EPS in the quarter grew 28.6% versus 2019.
He supplements his bottom-up approach with a more holistic view of the markets through factor investing techniques.Vladimir made his first investment in farmland right out of high school in 2007 and consequently started investing through mutual funds at the bottom of the market in 2009.
These numbers, however, do not take into account any large M&A deals and divestitures that occurred during the period. Gamgort added that he feels confident in the company's ability to perform strongly in 2022 despite ongoing challenges. Adjusted net income advanced 15.5% to$640 millionin the fourth quarter of 2021, compared to$554 millionin the year-ago period. I/we have a beneficial long position in the shares of UL either through stock ownership, options, or other derivatives.
"We, for example, experienced absenteeism at key plants in the double digits, which magnified an already challenged labor situation, causing the workforce to drop below critical threshold levels.". "We expect Q1 to represent our most challenging comparison to last year, as we managed through the peak levels of supply chain disruption and significant ongoing inflationary pressures," said Gamgort. vOut +=', ';
Keurig Dr Pepper is a company that attracts far less attention by Wall Street, when compared to Coca-Cola and PepsiCo. $(document).ready(function() { "It has been reported that 6% of the US workforce was absent at the start of the new year, due to being infected with COVID or caring for someone who had been infected. keurig dr pepper Adjusted operating income increased 12.5% to$1.06 billionfor the full year of 2021, compared to$0.94 billionin the prior year and, on a constant currency basis, Adjusted operating income increased 11.9%.
GAAP operating income for the full year increased 26.7% to$133 million, compared to$105 millionin the year-ago period, reflecting the growth in constant currency net sales, continued productivity and the favorable year-over-year impact of items affecting comparability. On a percent of net sales basis, Adjusted operating income in 2021 was 32.1%, compared to 34.2% in the prior year, largely due to the timing of pricing in the market lagging inflation, as well as the costs of supply chain disruption in the fourth quarter not being fully offset by productivity.
In about two and a half years, the company reduced its net debt by around $2bn to around $14bn as of Q4 2020. Although, it is much smaller in size and predominantly operating in North America, KDP has an exceptionally strong business model backed by a number of iconic brands. Also impacting the comparison was a double-digit increase in marketing investment, which more than offset the aforementioned$28 millionstrategic asset investment program benefit. Subscribe Adjusted operating income totaled$1.52 billion, compared to$1.51 billionin the year-ago period and, on a constant currency basis, Adjusted operating income decreased 0.4%. GAAP operating income increased 22.9% to$1.01 billionin 2021, compared to$0.82 billionin the prior year, reflecting the strong growth in net sales, continued productivity and merger synergies and the net year-over-year benefit of$44 millionrecorded in the segment from the Company's strategic asset investment program. On a two-year basis, constant currency net sales advanced 15.7% versus 2019. Also benefitting the comparison was the favorable year-over-year impact of items affecting comparability, including lower costs related to COVID-19 and comparison to a non-cash impairment charge in the prior year. Along with inflationary pressures, KDP experienced the challenge of significant absenteeism across its workforce at the height of Omicron causing the company to struggle to meet demand and delivery commitments, noted Gamgort. Nestle Investor Presentation Seeking Alpha. | Infographic. Compared to pre-pandemic levels KDP grew its topline in 2021 by nearly 15%, which is much higher than the total revenue growth rates of other peers except for PepsiCo. "We have successfully rebuilt production output since the height of Omicron absenteeism, but we are now servicing the continued high consumer demand while working to rebuild inventory, which is a process that well continue well into the next quarter.". Beverage, ", Net sales for the full year of 2021 increased 9.2% to$12.68 billion, compared to$11.62 billionin the year-ago period, driven by strong growth in each business segment. His professional background lies in solving complex business problems through the lens of overall business strategy and various valuation and financial modelling techniques.Vladimir has also been exploring the concept of value investing and in particular finding companies with sustainable competitive advantages that also trade below their intrinsic value. The strong brand portfolio and strategic positioning in key high growth product segments were among the main reasons why KDP performed better than its high quality competitors in the soft drinks space. @FCDIGGKGHMJKQNNSOPTRRYVVZWX^[[`^^b_`fcdhefjghmjkpnoroptqrxvwzwx|z{57!7#:\(?*?,B/D1F4K9N=Q~~BUEYK]K_NaSeWh[l]n_pbreun|pvy} )]/BitsPerComponent 8/Filter/FlateDecode>>stream The pod volume performance reflected continued strong growth in the at-home business, largely reflecting the benefit of significant growth in households in the Keurig system, and improving trends in the away-from-home business. High debt levels, which is often seen as one of the company's major risks, was also reduced significantly. On a percent of net sales basis, Adjusted operating income increased 80 basis points in 2021 to 22.5%, compared to 21.7% in the prior year, primarily driven by the strong growth in net sales. Strong performance in 2021 marked the successful completion of the Company's three-year merger period, with results that met or exceeded all key commitments. 
} Also benefitting the performance was the favorable year-over-year impact of items affecting comparability, including the aforementioned$400 millionafter-tax gain on the sale of the Company's equity interest in BodyArmor and comparison to a non-cash impairment charge in the prior year.. A good proxy of the impact of inorganic growth is the gap between the growth of total assets and goodwill & intangible assets, which are mostly recorded on the balance sheet following an acquisition. 3CSDs refer to "Carbonated Soft Drinks". Sweeteners (intense, bulk, polyols), Cargill | 15-Jun-2022 Net sales for the full year of 2021 increased 20.5% to$599 million, compared to$497 millionin the prior year and, on a constant currency basis, net sales increased 14.1%. Posted high single-digit net sales growth and double-digit Adjusted diluted EPS growth. The president of cold beverages position will be split in two, You can work in the Healthcare Industry Without a Degree (see salaries and courses). A smoother path to wellness product success, ROHA launches FUTURALS Stratus Blue; sourced from the Huito fruit bringing to your food plate various shades of blue. In the analysis from last April, I showed how financial risk of KDP compares to other large Packaged Food & Beverages companies. KDP in-market performance in the LRB category remained strong in the quarter, with retail dollar consumption advancing 12.6% across the Company's cold beverage retail base, largely reflecting strength in CSDs, premium unflavored water, coconut water, apple juice, and apple sauce. As mentioned previously, Keurig household penetration continued to be exceptional, adding eight million new households to the Keurig system since 2018. dataLayer.push(dataLayerNews); Markets, Improved KDP's management leverage ratio to 2.9x at year-end 2021. Bottler cases sales volume in 2021 increased 2.0% versus the prior year. Further demonstrating the power of the Keurig system, for the first time ever, unit market share of Keurig compatible brewers surpassed traditional drip coffee makers in the fourth quarter. On a constant currency basis, net sales increased 11.7%, reflecting favorable volume/mix of 2.0% and higher net price realization of 9.7%.
