Name: Keurig Dr Pepper Inc. (NASDAQ:KDP) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Keurig Dr Pepper Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	12,683)	11,618)	11,120)	7,442)
Cost of sales	(5,706)	(5,132)	(4,778)	(3,560)
Gross profit	6,977)	6,486)	6,342)	3,882)
Selling, general and administrative expenses	(4,153)	(3,978)	(3,962)	(2,635)
Impairment of intangible assets	—)	(67)	—)	—)
Other operating income (expense), net	70)	39)	(2)	(10)
Income from operations	2,894)	2,480)	2,378)	1,237)
Interest expense	(500)	(604)	(654)	(452)
Loss on early extinguishment of debt	(105)	(4)	(11)	(13)
Gain on sale of equity method investment	524)	—)	—)	—)
Impairment of investments and note receivable	(17)	(102)	—)	—)
Other income (expense), net	2)	(17)	(19)	19)
Income before provision for income taxes	2,798)	1,753)	1,694)	791)
Provision for income taxes	(653)	(428)	(440)	(202)
Net income including non-controlling interest	2,145)	1,325)	1,254)	589)
Net (income) loss attributable to non-controlling interest	1)	—)	—)	(3)
Net income attributable to KDP	2,146)	1,325)	1,254)	586)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Revenue and profitability exhibit a strong upward trajectory over the analyzed four-year period, characterized by a significant expansion in scale between 2018 and 2019 and steady growth thereafter.

Revenue and Gross Profitability: Net sales grew from 7,442 million US dollars in 2018 to 12,683 million US dollars in 2021, representing a total increase of approximately 70.4%. The most substantial jump occurred between 2018 and 2019, where sales increased by nearly 49%. Gross profit followed a similar trajectory, rising from 3,882 million US dollars to 6,977 million US dollars. The gross profit margin improved sharply from 52.1% in 2018 to 57.0% in 2019, before stabilizing around 55% in 2020 and 2021.
Operating Efficiency: Income from operations demonstrated consistent growth, increasing from 1,237 million US dollars in 2018 to 2,894 million US dollars in 2021. While selling, general, and administrative expenses rose in absolute terms from 2,635 million US dollars to 4,153 million US dollars, the growth of these expenses was outpaced by revenue growth. Consequently, the operating margin improved from 16.6% in 2018 to 22.8% in 2021, indicating enhanced operational leverage and cost management.
Financial Costs and Non-Operating Items: Interest expenses peaked in 2019 at 654 million US dollars and trended downward to 500 million US dollars by 2021, suggesting a reduction in debt burden or more favorable financing terms. The 2021 fiscal year was notably impacted by a non-recurring gain on the sale of an equity method investment totaling 524 million US dollars, which contributed significantly to the bottom-line result.
Net Income Trends: Net income attributable to the company grew substantially from 586 million US dollars in 2018 to 2,146 million US dollars in 2021. The net profit margin expanded from 7.8% in 2018 to 16.9% in 2021. This growth was driven by the combination of increased operating income, reduced interest expenses, and the significant one-time gain realized in the final year of the period.

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