Keurig Dr Pepper Inc. Q4 FY2025 earnings call

• 2025 was strong, achieved annual guidance, drove innovation and commercial performance. • 2026 focus on delivering low double digit full year EPS growth, closing and integrating JDE Peet's, and establishing two stand alone businesses. • Secured key regulatory approvals for JDE Peet's acquisition, launched tender offer, making progress on integration. • Q4 net sales grew 10%, led by net price realization and volume mix. • US refreshment beverages had continued top and bottom line momentum, emerging growth areas performed well. • US coffee had resilient pod category trends but faced cost pressures, invested in long term initiatives. • International had strong Q4 performance. • Bold innovation plans for 2026 in various categories.

US refreshment beverages: net sales grew 11.5%, volume mix contributed seven points (primarily from Ghost and base business), net pricing added 4.5 points, segment operating income increased 8.7%. US coffee: net sales grew 3.9%, net price realization added eight percentage points, biomix was a partial offset, segment operating income declined 8.8%. International: net sales grew mid teens constant currency, operating income grew 20%, led by Mexico and Canada.

• 2026 net sales range 25.9 to $26,400,000,000, including incremental JDE Peet's contribution. • Low double digit EPS growth in constant currency, 6 - 7 percentage points contribution from JDE Peet's. • Stand alone Keurig Dr Pepper Inc. expects 4% - 6% net sales and EPS growth. • Q1 EPS expected $0.36 - $0.37, transitory pressures to ease after Q1. • Benefits from JDE deal close in early Q2 enhancing EPS growth.

• Cost pressures impacting profitability in Q4 and potentially early 2026. • Retailer inventory adjustments affecting top and bottom line performance in US coffee. • SNAP waiver adjustments in certain states potentially impacting business, though manageable. • Uncertainty around market conditions affecting separation timing.

Q: Context on top line performance for stand alone Keurig Dr Pepper Inc. and JDE Peet's EPS contribution.

A: Stand alone KD KDP has 4% - 6% top and bottom line growth, JDE Peet's adds 8.5 - $8,700,000,000 to revenue with 6 - 7 point EPS benefit.

Q: Existing debt allocation and energy space.

A: Debt allocation being addressed, energy has strong momentum with category growth, share gains, and new innovation.

Q: Coffee commodity headwinds and pricing.

A: Commodity headwinds peak in Q1 2026, pricing to drive sustainable growth.

Q: First quarter organic sales growth and partner brands.

A: First quarter has retail inventory and cost headwinds, partner brands part of balanced growth strategy.

Q: EPS growth phasing and coffee Co leadership.

A: EPS growth accelerates in Q2 and back half, coffee Co CEO search in final stages.

Q: SNAP waiver adjustments impact.

A: Impact manageable, monitored closely with trade off options.