Keurig Dr Pepper Inc. (NYSE: KDP) today reported financial results for the full year ended December 31, 2019 and provided guidance for 2020, the Company's second full fiscal year since the merger between Keurig Green Mountain and Dr Pepper Snapple Group, Inc. created KDP.
The company, with headquarters in Burlington, Mass. and Plano, Texas said net sales for the full year of 2019 increased 49% to $11.12 billion, compared to $7.44 billion in the year-ago period, primarily reflecting the impact of the merger in 2018.
Net income more than doubled to $1.25 billion in 2019, compared to $0.59 billion in 2018, primarily reflecting the impact of the merger, partially offset by the unfavorable year-over-year impact of items affecting comparability. Diluted EPS grew 66% to $0.88, compared to diluted EPS of $0.53 in 2018.
CEO Bob Gamgort stated, "We delivered strong performance for 2019, with underlying net sales growth in all four segments and EPS growth above our merger target range. In-market performance was healthy across our portfolio, as innovation, marketing and in-store execution drove share growth in key segments. Free cash flow continued to be robust, enabling us to rapidly delever.
"As we look toward 2020, we are increasing our investment behind growth drivers, leading to our expectation that revenue will accelerate above our merger targets, while still delivering double-digit EPS growth.
"We continue to expect that we will generate our merger target synergies of $600 million and three-year EPS growth within our target range of 15% to 17%."
KDP shares slumped 41 cents, or 1.4%, to $28.31
