Analysis of Reportable Segments
Keurig Dr Pepper Inc. operates in 4 segments: Coffee Systems; Packaged Beverages; Beverage Concentrates; and Latin America Beverages.
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2008
- Operating Profit Margin since 2008
- Return on Equity (ROE) since 2008
- Return on Assets (ROA) since 2008
- Price to Sales (P/S) since 2008
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Segment Profit Margin
Keurig Dr Pepper Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Coffee Systems | ||||
| Packaged Beverages | ||||
| Beverage Concentrates | ||||
| Latin America Beverages |
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).
- Coffee Systems Segment Profit Margin
- The profit margin in the Coffee Systems segment shows a slight fluctuation over the observed periods. Starting at 28.27% in 2018, it increased marginally to 28.8% in 2019, then experienced a minor decline to 28.6% in 2020, followed by a more noticeable decrease to 27.95% in 2021. Overall, there is a subtle downward trend in profitability in this segment in the latter years.
- Packaged Beverages Segment Profit Margin
- The Packaged Beverages segment exhibits a consistent upward trajectory in profit margins across the four years. Beginning at 10.64% in 2018, the margin saw a significant increase to 15.31% in 2019, remaining relatively stable at 15.33% in 2020, and continued to improve to 17.17% in 2021. This indicates strong profitability growth and possibly improved operational efficiency or pricing strategies within this segment.
- Beverage Concentrates Segment Profit Margin
- This segment displays the highest profit margins among all segments and an overall increasing trend. The profit margin rose from 64.28% in 2018 to 67.54% in 2019, then further increased to 70.34% in 2020, and slightly decreased to 70.26% in 2021. Despite the slight dip in the final year, the margins remain substantially higher than other segments, suggesting a strong competitive position and potentially favorable cost structures.
- Latin America Beverages Segment Profit Margin
- The Latin America Beverages segment indicates a marked upward trend during the period. Starting at 11.89% in 2018, the margin increased steadily to 16.10% in 2019, then accelerated to 21.13% in 2020, and reached 22.20% in 2021. This consistent increase suggests that this segment is improving its profitability significantly, possibly due to market expansion, operational improvements, or favorable economic conditions in the region.
- Overall Observations
- Across all segments, the data demonstrates varied profit margin trends. The Beverage Concentrates segment maintains robust and comparatively stable high margins, indicating its strength in the portfolio. The Packaged Beverages and Latin America Beverages segments reflect strong growth in profitability, which may signal strategic improvements or positive market developments. In contrast, the Coffee Systems segment shows a slight downward trend, implying potential challenges that might warrant management attention. Collectively, the increasing margins in most segments suggest an overall enhancement in operational profitability over the period.
Segment Profit Margin: Coffee Systems
Keurig Dr Pepper Inc.; Coffee Systems; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Net sales | ||||
| Segment Profitability Ratio | ||||
| Segment profit margin1 | ||||
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).
1 2021 Calculation
Segment profit margin = 100 × Income from operations ÷ Net sales
= 100 × ÷ =
- Net Sales
- Net sales demonstrated a consistent upward trend over the four-year period, increasing from $4,114 million in 2018 to $4,716 million in 2021. This reflects a cumulative growth of approximately 14.6%, indicating steady revenue expansion within the segment.
- Income from Operations
- Income from operations also showed a progressive rise, moving from $1,163 million in 2018 to $1,318 million in 2021. This represents an increase of about 13.3% over the period. The growth in operating income aligns closely with the increase in net sales, suggesting relatively stable operational efficiency.
- Segment Profit Margin
- The segment profit margin exhibited a slight fluctuation during the period. Starting at 28.27% in 2018, it rose marginally to 28.8% in 2019, then experienced a minor decline to 28.6% in 2020, followed by a more noticeable decrease to 27.95% in 2021. Despite these fluctuations, margins remained relatively stable, staying near the 28% range, though the downward movement in 2021 indicates some compression in profitability.
- Overall Analysis
- The data indicates steady growth in both net sales and operating income in the focused segment, reflecting ongoing expansion and operational scalability. The relatively stable profit margin suggests maintained efficiency in managing costs relative to revenues. However, the slight decline in profit margin in the latest period may warrant further examination to understand potential cost pressures or pricing changes impacting profitability.
Segment Profit Margin: Packaged Beverages
Keurig Dr Pepper Inc.; Packaged Beverages; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Net sales | ||||
| Segment Profitability Ratio | ||||
| Segment profit margin1 | ||||
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).
1 2021 Calculation
Segment profit margin = 100 × Income from operations ÷ Net sales
= 100 × ÷ =
The financial data for the Packaged Beverages segment over the four-year period displays an overall positive trajectory across key performance indicators.
- Income from Operations
- There was a significant increase in income from operations, beginning at $257 million in 2018 and rising steadily to $1,010 million by 2021. This represents a nearly fourfold increase, indicating enhanced operational efficiency or improved profitability within the segment.
- Net Sales
- Net sales exhibited substantial growth, more than doubling from $2,415 million in 2018 to $5,882 million in 2021. This consistent upward trend suggests robust demand, successful market expansion, or effective pricing strategies during the period.
- Segment Profit Margin
- The segment profit margin increased from 10.64% in 2018 to 17.17% in 2021. This steady improvement reflects better cost management or higher value generation per unit of sales over time. Notably, the margin stabilized between 2019 and 2020 before achieving an additional rise in 2021.
Overall, the Packaged Beverages segment demonstrated strong growth in revenue and profitability, reinforcing its positive contribution to the broader business. The simultaneous increase in net sales and profit margins indicates operational leverage and effective management of expenses relative to sales expansion.
Segment Profit Margin: Beverage Concentrates
Keurig Dr Pepper Inc.; Beverage Concentrates; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Net sales | ||||
| Segment Profitability Ratio | ||||
| Segment profit margin1 | ||||
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).
1 2021 Calculation
Segment profit margin = 100 × Income from operations ÷ Net sales
= 100 × ÷ =
- Income from operations
- The income from operations demonstrated a strong upward trend over the four-year period. Starting at 430 million USD in 2018, it more than doubled by 2019 to 955 million USD. Although there was a slight decrease in 2020 to 932 million USD, the figure rebounded in 2021, reaching 1,044 million USD, the highest in the period analyzed.
- Net sales
- Net sales exhibited significant growth from 2018 through 2021, with an overall increase of approximately 122% over the period. Sales jumped from 669 million USD in 2018 to 1,414 million USD in 2019, decreased to 1,325 million USD in 2020, and then increased again to 1,486 million USD in 2021. Despite the dip in 2020, the recovery in 2021 indicates resilient market demand or effective sales strategies.
- Segment profit margin
- The segment profit margin consistently improved from 64.28% in 2018 to 70.34% in 2020. Although it slightly decreased to 70.26% in 2021, the margin remained elevated and stable compared to earlier years. The overall trend suggests efficient cost management and favorable profitability within the segment over the analyzed timeframe.
Segment Profit Margin: Latin America Beverages
Keurig Dr Pepper Inc.; Latin America Beverages; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Net sales | ||||
| Segment Profitability Ratio | ||||
| Segment profit margin1 | ||||
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).
1 2021 Calculation
Segment profit margin = 100 × Income from operations ÷ Net sales
= 100 × ÷ =
- Income from Operations
- The income from operations displayed a consistent upward trend over the analyzed period. Starting at $29 million in 2018, it showed substantial growth reaching $85 million in 2019, followed by further increases to $105 million in 2020 and $133 million in 2021. This pattern indicates strong operational performance and improving profitability within the segment.
- Net Sales
- Net sales experienced notable fluctuations during the period. Sales more than doubled from $244 million in 2018 to $528 million in 2019, suggesting significant expansion. However, there was a decline to $497 million in 2020. Subsequently, net sales rebounded to $599 million in 2021, surpassing previous highs and demonstrating recovery and growth momentum.
- Segment Profit Margin
- The segment profit margin showed a clear positive trajectory throughout the four years. From 11.89% in 2018, it increased steadily to 16.1% in 2019, 21.13% in 2020, and reached 22.2% in 2021. This trend reflects improving efficiency and profitability in operations relative to sales, indicating effective cost management and/or pricing strategies.
Segment Return on Assets (Segment ROA)
Keurig Dr Pepper Inc., ROA by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Coffee Systems | ||||
| Packaged Beverages | ||||
| Beverage Concentrates | ||||
| Latin America Beverages |
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).
- Coffee Systems
- The Coffee Systems segment displayed a steady upward trend in ROA from 7.69% in 2018 to 8.56% in 2021. This consistent increase each year indicates improving asset utilization and profitability within this segment over the observed period.
- Packaged Beverages
- This segment exhibited significant growth in ROA, rising sharply from 2.38% in 2018 to 8.55% in 2021. The most notable change occurred between 2018 and 2019, with the ROA nearly tripling. Subsequent years showed continued improvement, suggesting strong operational enhancements or favorable market conditions.
- Beverage Concentrates
- The Beverage Concentrates segment showed moderate but consistent growth in ROA, increasing from 2.16% in 2018 to 5.05% in 2021. While the rise was less dramatic compared to Packaged Beverages, the steady upward movement reflects gradual improvements in efficiency or profitability.
- Latin America Beverages
- The Latin America Beverages segment experienced a substantial increase in ROA, climbing from a low base of 1.59% in 2018 to 7.54% in 2021. This represents a nearly fivefold increase, indicating significant progress possibly driven by market expansion, operational efficiencies, or favorable local economic conditions.
Segment ROA: Coffee Systems
Keurig Dr Pepper Inc.; Coffee Systems; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Identifiable operating assets | ||||
| Segment Profitability Ratio | ||||
| Segment ROA1 | ||||
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).
1 2021 Calculation
Segment ROA = 100 × Income from operations ÷ Identifiable operating assets
= 100 × ÷ =
- Income from Operations
- The income from operations for the segment showed a steady upward trend over the four-year period. It increased from 1,163 million US dollars in 2018 to 1,318 million US dollars in 2021. The growth was consistent year-over-year, with the segment achieving incremental increases each year, indicating a positive operational performance trend.
- Identifiable Operating Assets
- Identifiable operating assets demonstrated a gradual increase from 15,117 million US dollars at the end of 2018 to 15,397 million US dollars by the end of 2021. The asset base showed relative stability with modest growth, suggesting controlled investment or asset accumulation within the segment during this period.
- Segment Return on Assets (ROA)
- The Segment ROA displayed a consistent improvement, rising from 7.69% in 2018 to 8.56% in 2021. This increase reflects enhanced efficiency in utilizing assets to generate operating income over the reviewed timeframe, signifying improved profitability relative to the asset base.
Segment ROA: Packaged Beverages
Keurig Dr Pepper Inc.; Packaged Beverages; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Identifiable operating assets | ||||
| Segment Profitability Ratio | ||||
| Segment ROA1 | ||||
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).
1 2021 Calculation
Segment ROA = 100 × Income from operations ÷ Identifiable operating assets
= 100 × ÷ =
The annual data for the Packaged Beverages segment demonstrates a positive trajectory across several key financial metrics over the four-year period ending December 31, 2021.
- Income from Operations
- There is a consistent and substantial increase in income from operations, rising from US$257 million in 2018 to US$1,010 million in 2021. This represents nearly a fourfold increase over the period, indicating enhanced operational performance and profitability within the segment.
- Identifiable Operating Assets
- Identifiable operating assets show a gradual upward trend, growing from US$10,791 million in 2018 to US$11,819 million in 2021. The growth in assets appears steady but moderate relative to the increase in income from operations, suggesting improved asset utilization or operational efficiency.
- Segment Return on Assets (ROA)
- The segment's return on assets ratio improves significantly from 2.38% in 2018 to 8.55% in 2021. This reflects the segment's increasingly effective use of its assets to generate operating income. The progressive rise each year underscores a sustained enhancement in asset productivity and profitability.
Overall, the data reveals strong growth in operating income accompanied by moderate increases in operating assets, resulting in marked improvements in profitability metrics such as ROA. This indicates a trend toward greater operational efficiency and financial strength within the Packaged Beverages segment during the analyzed period.
Segment ROA: Beverage Concentrates
Keurig Dr Pepper Inc.; Beverage Concentrates; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Identifiable operating assets | ||||
| Segment Profitability Ratio | ||||
| Segment ROA1 | ||||
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).
1 2021 Calculation
Segment ROA = 100 × Income from operations ÷ Identifiable operating assets
= 100 × ÷ =
- Income from operations
- The income from operations for the segment showed a marked increase over the analyzed period. It rose significantly from 430 million USD in 2018 to 955 million USD in 2019, indicating a substantial improvement in operational profitability. The figure slightly decreased to 932 million USD in 2020 but rebounded to 1,044 million USD by the end of 2021, reflecting a positive recovery and overall growth trend over the four years.
- Identifiable operating assets
- The identifiable operating assets for the segment exhibited a steady upward trend throughout the years. Starting at approximately 19,916 million USD in 2018, the assets increased consistently to 20,447 million USD in 2019, then to 20,575 million USD in 2020, and finally reaching 20,674 million USD in 2021. This growth suggests incremental investments or asset accumulation in the segment over the period.
- Segment Return on Assets (ROA)
- The segment's ROA demonstrated significant improvement from 2018 to 2021. Beginning at a low of 2.16% in 2018, the ROA more than doubled to 4.67% in 2019. It remained stable with a slight decrease to 4.53% in 2020 before rising again to 5.05% in 2021. This trend indicates enhanced efficiency in utilizing assets to generate operating income, suggesting improved management effectiveness or operational performance within the segment.
- Overall Analysis
- Across the four-year span, the Beverage Concentrates segment exhibited positive growth in income from operations in tandem with a gradual increase in identifiable operating assets. The ROA improvements imply that the segment became more effective at converting its asset base into operating profits. The slight dip in income from operations and ROA in 2020 may correlate with specific industry or economic factors during that year but did not derail the overall positive trajectory.
Segment ROA: Latin America Beverages
Keurig Dr Pepper Inc.; Latin America Beverages; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Income from operations | ||||
| Identifiable operating assets | ||||
| Segment Profitability Ratio | ||||
| Segment ROA1 | ||||
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).
1 2021 Calculation
Segment ROA = 100 × Income from operations ÷ Identifiable operating assets
= 100 × ÷ =
The Latin America Beverages segment displayed a positive performance trend over the four-year period ending in 2021.
- Income from operations
- The income from operations demonstrated consistent growth each year. Starting from $29 million in 2018, it increased significantly to $85 million in 2019, followed by further growth to $105 million in 2020, and reaching $133 million by the end of 2021. This upward trajectory indicates improving profitability in the segment.
- Identifiable operating assets
- Identifiable operating assets remained relatively stable across the period. The asset base started at $1,820 million in 2018, saw a slight increase to $1,856 million in 2019, but then declined to $1,763 million in 2020 and remained at this level in 2021. This suggests limited investment or asset growth despite the increasing income.
- Segment Return on Assets (ROA)
- The segment ROA showed marked improvement, rising from 1.59% in 2018 to 4.58% in 2019. The upward momentum persisted with ROA reaching 5.96% in 2020 and further increasing to 7.54% in 2021. This indicates more efficient utilization of assets to generate operating income over time.
Overall, the data reveals enhanced operational efficiency and profitability within the Latin America Beverages segment, despite a relatively stable asset base. The significant improvement in ROA underscores better asset management or operational leverage achieved during this period.
Segment Asset Turnover
Keurig Dr Pepper Inc., asset turnover by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Coffee Systems | ||||
| Packaged Beverages | ||||
| Beverage Concentrates | ||||
| Latin America Beverages |
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).
- Coffee Systems
- The asset turnover ratio for this segment shows a consistent upward trend over the four-year period. Starting at 0.27 in 2018, it increased gradually each year to reach 0.31 in 2021. This suggests improved efficiency in asset utilization within this segment.
- Packaged Beverages
- This segment exhibits a substantial increase in asset turnover from 0.22 in 2018 to 0.50 in 2021. The most notable jump occurred between 2018 and 2019, where the ratio nearly doubled. Subsequent years also show a steady increase, indicating significant enhancement in managing assets to generate revenue.
- Beverage Concentrates
- The asset turnover ratio in this segment remains relatively low throughout the period, with minor fluctuations. It increased from 0.03 in 2018 to 0.07 in 2019, slightly decreased to 0.06 in 2020, and then returned to 0.07 in 2021. The overall trend suggests marginal improvements but indicates that this segment operates with lower asset turnover compared to others.
- Latin America Beverages
- This segment experienced a notable rise in asset turnover ratio from 0.13 in 2018 to 0.34 in 2021. The most significant increase occurred between 2018 and 2019, similar to the Packaged Beverages segment, followed by stability in 2020 and a further increase in 2021. This suggests improving operational efficiency in the Latin America region over time.
Segment Asset Turnover: Coffee Systems
Keurig Dr Pepper Inc.; Coffee Systems; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | ||||
| Identifiable operating assets | ||||
| Segment Activity Ratio | ||||
| Segment asset turnover1 | ||||
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).
1 2021 Calculation
Segment asset turnover = Net sales ÷ Identifiable operating assets
= ÷ =
The data indicates a consistent upward trend in net sales over the four-year period. Net sales increased from 4,114 million US dollars in 2018 to 4,716 million US dollars in 2021, reflecting steady growth in revenue generation within the segment.
Identifiable operating assets demonstrate relative stability, with a slight increase each year. The asset base rose from 15,117 million US dollars at the end of 2018 to 15,397 million US dollars by the end of 2021. This suggests moderate asset expansion or reinvestment to support segment operations.
The segment asset turnover ratio improved progressively from 0.27 in 2018 to 0.31 in 2021. This ratio measures the efficiency in utilizing assets to generate sales. The increase denotes enhanced operational efficiency and better asset utilization over the years.
- Net Sales
- Steady growth from 4,114 million USD (2018) to 4,716 million USD (2021).
- Identifiable Operating Assets
- Moderate increase from 15,117 million USD (2018) to 15,397 million USD (2021), indicating stability with slight growth.
- Segment Asset Turnover
- Incremental improvement from 0.27 (2018) to 0.31 (2021), reflecting enhanced asset efficiency.
Overall, the segment exhibits positive financial dynamics characterized by increasing sales and improving asset utilization, supported by a stable asset base. This indicates effective management of resources to drive growth and operational effectiveness within the segment.
Segment Asset Turnover: Packaged Beverages
Keurig Dr Pepper Inc.; Packaged Beverages; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | ||||
| Identifiable operating assets | ||||
| Segment Activity Ratio | ||||
| Segment asset turnover1 | ||||
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).
1 2021 Calculation
Segment asset turnover = Net sales ÷ Identifiable operating assets
= ÷ =
The analysis of the annual "Packaged Beverages" segment reveals significant changes across the reported periods from 2018 to 2021. Net sales exhibited strong growth, more than doubling from approximately 2,415 million USD in 2018 to 5,882 million USD in 2021. This increase indicates expanding market demand or improved sales effectiveness within the segment.
Identifiable operating assets also showed a rising trend, albeit more moderate in comparison to sales. Assets increased from 10,791 million USD in 2018 to 11,819 million USD in 2021. The growth in assets suggests ongoing investment and potentially capacity expansion to support the segment's operations.
Segment asset turnover, calculated as net sales divided by identifiable operating assets, improved steadily over the period, rising from 0.22 in 2018 to 0.50 in 2021. This upward trend reflects enhanced efficiency in utilizing assets to generate sales. A higher asset turnover ratio typically indicates better operational performance and asset management within the business segment.
Overall, the data indicate a positive trajectory of growth and increasing operational efficiency in the segment over the four-year period. The substantial rise in net sales combined with moderate asset growth and improving asset turnover suggests strengthening profitability potential and effective resource use.
Segment Asset Turnover: Beverage Concentrates
Keurig Dr Pepper Inc.; Beverage Concentrates; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | ||||
| Identifiable operating assets | ||||
| Segment Activity Ratio | ||||
| Segment asset turnover1 | ||||
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).
1 2021 Calculation
Segment asset turnover = Net sales ÷ Identifiable operating assets
= ÷ =
- Net Sales
- Net sales demonstrated substantial growth between 2018 and 2019, more than doubling from 669 million US dollars to 1,414 million US dollars. This was followed by a slight decline in 2020 to 1,325 million US dollars, then a recovery and increase to 1,486 million US dollars in 2021, indicating a general upward trend with some volatility in the period observed.
- Identifiable Operating Assets
- The identifiable operating assets showed a steady but modest increase over the four-year span. Beginning at 19,916 million US dollars in 2018, the amount rose to 20,447 million in 2019, continued to 20,575 million in 2020, and reached 20,674 million US dollars by the end of 2021. This gradual rise suggests consistent investment or asset retention within the segment.
- Segment Asset Turnover
- Segment asset turnover followed a pattern of improvement from 0.03 in 2018 to 0.07 in 2019, indicating enhanced efficiency in utilizing operating assets to generate net sales. It then slightly declined to 0.06 in 2020, coinciding with the reduction in net sales, before recovering back to 0.07 in 2021. This ratio suggests the segment's ability to maintain effective asset utilization was somewhat impacted during 2020 but returned to prior levels by 2021.
- Overall Insights
- The data indicates strong sales growth initially followed by a temporary downturn, possibly influenced by external factors, with recovery in subsequent periods. Operating assets remained relatively stable with incremental growth, which, combined with fluctuations in sales, affected the segment's asset turnover ratio. The ratios imply overall improvement in asset efficiency in relation to sales, despite some short-term volatility.
Segment Asset Turnover: Latin America Beverages
Keurig Dr Pepper Inc.; Latin America Beverages; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Net sales | ||||
| Identifiable operating assets | ||||
| Segment Activity Ratio | ||||
| Segment asset turnover1 | ||||
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).
1 2021 Calculation
Segment asset turnover = Net sales ÷ Identifiable operating assets
= ÷ =
- Net Sales
- Net sales demonstrated a consistent upward trend over the analyzed period. The value increased significantly from US$ 244 million in 2018 to US$ 599 million in 2021, representing more than a doubling in revenue. This suggests strong growth in the segment's market activities or customer base during these years.
- Identifiable Operating Assets
- The identifiable operating assets showed moderate fluctuation. Starting at US$ 1820 million in 2018, the value slightly increased to US$ 1856 million in 2019 but decreased to US$ 1763 million in 2020 and remained stable at that level in 2021. This indicates a slight reduction in asset base after 2019, stabilizing thereafter.
- Segment Asset Turnover
- The segment asset turnover ratio showed a consistent improvement throughout the period. It rose from 0.13 in 2018 to 0.28 in 2019 and maintained at 0.28 in 2020, then increased further to 0.34 in 2021. This improvement indicates enhanced efficiency in utilizing operating assets to generate sales over time.
- Overall Insights
- The segment experienced robust sales growth coupled with a slight reduction and stabilization in asset base post-2019. The increasing asset turnover ratio demonstrates improving operational efficiency, suggesting that the segment became more effective in leveraging its assets to drive sales during the analyzed years.
Net sales
Keurig Dr Pepper Inc., net sales by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Coffee Systems | ||||
| Packaged Beverages | ||||
| Beverage Concentrates | ||||
| Latin America Beverages | ||||
| Total |
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).
The annual segment net sales data reflects distinct trends across the varied product categories over the four-year period analyzed.
- Coffee Systems
- Net sales consistently increased each year, growing from $4,114 million in 2018 to $4,716 million in 2021. This steady rise indicates sustained demand and potential market growth in the coffee systems segment.
- Packaged Beverages
- This segment exhibited significant growth, particularly from 2018 to 2019, when sales jumped from $2,415 million to $4,945 million, effectively more than doubling. The upward trend continued, albeit at a slower pace, reaching $5,882 million in 2021. This rapid increase suggests successful expansion initiatives or a possible acquisition impacting sales figures.
- Beverage Concentrates
- Sales in this category showed a sharp increase from $669 million in 2018 to $1,414 million in 2019, followed by a slight decline to $1,325 million in 2020. The segment recovered in 2021, with sales rising again to $1,486 million. The initial spike and subsequent fluctuations may indicate volatility in demand or pricing within this segment, yet overall growth is evident over the full timeframe.
- Latin America Beverages
- This segment displayed consistent growth with minor fluctuations, increasing from $244 million in 2018 to $599 million in 2021. Despite a slight dip between 2019 and 2020, the general trend is positive, pointing toward expanding market presence in the Latin American region.
- Total Net Sales
- Total segment sales rose markedly from $7,442 million in 2018 to $12,683 million in 2021, indicating broad-based growth across all segments. The most substantial annual increase occurred between 2018 and 2019, closely linked to the notable jumps in Packaged Beverages and Beverage Concentrates sales during that period.
In summary, the data illustrates robust overall growth, with Packaged Beverages and Beverage Concentrates driving much of the increase. Coffee Systems and Latin America Beverages demonstrate steady, incremental expansion. The patterns suggest strategic growth efforts and diversifying revenue streams across product lines and geographic markets.
Income from operations
Keurig Dr Pepper Inc., income from operations by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Coffee Systems | ||||
| Packaged Beverages | ||||
| Beverage Concentrates | ||||
| Latin America Beverages | ||||
| Unallocated corporate costs | ||||
| Total |
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).
The income from operations for the various segments over the four-year period demonstrates observable growth trends and fluctuations.
- Coffee Systems
- This segment displays a steady increase in income from operations, rising from US$1,163 million in 2018 to US$1,318 million in 2021. The growth is consistent year over year, with increments of approximately 5% to 6% annually, indicating stable expansion in this core area.
- Packaged Beverages
- The Packaged Beverages segment shows significant growth, particularly from 2018 to 2019, where income surged from US$257 million to US$757 million, nearly tripling. This robust upward trend continues through 2021, reaching US$1,010 million. The rapid increase suggests successful market penetration or product expansion within this segment.
- Beverage Concentrates
- This segment experienced a sharp increase from US$430 million in 2018 to US$955 million in 2019. However, in 2020 there was a slight decline to US$932 million, followed by a recovery to US$1,044 million in 2021. Overall, the segment shows strong growth with minor volatility, reflecting possible external market influences or internal adjustments.
- Latin America Beverages
- Income from operations in Latin America Beverages grew steadily each year, beginning at US$29 million in 2018 and increasing to US$133 million in 2021. This consistent growth indicates a strengthening presence and expanding operations in the Latin American market.
- Unallocated Corporate Costs
- The unallocated corporate costs have remained relatively stable over the period, fluctuating slightly around the US$-640 million mark, reaching US$-611 million in 2021. The slight decrease in costs in the final year may contribute positively to overall operational efficiency.
- Total Income from Operations
- The aggregate income from operations demonstrates a robust upward trend, climbing from US$1,237 million in 2018 to US$2,894 million in 2021. This increase is primarily driven by substantial growth in the Packaged Beverages and Beverage Concentrates segments, supplemented by consistent improvements in Coffee Systems and Latin America Beverages, partially offset by steady corporate costs.
Identifiable operating assets
Keurig Dr Pepper Inc., identifiable operating assets by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|
| Coffee Systems | ||||
| Packaged Beverages | ||||
| Beverage Concentrates | ||||
| Latin America Beverages | ||||
| Total |
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).
The analysis of identifiable operating assets across the reportable segments reveals specific trends and patterns over the four-year period ending December 31, 2021.
- Coffee Systems
- The identifiable operating assets within the Coffee Systems segment show a consistent and gradual increase each year. Starting from US$15,117 million in 2018, the assets grew modestly to US$15,230 million in 2019, US$15,295 million in 2020, and reached US$15,397 million in 2021. This steady growth indicates sustained investment or asset retention within this segment, suggesting stable operational needs or strategic asset enhancements.
- Packaged Beverages
- This segment demonstrates a more marked upward trend in identifiable operating assets. Beginning at US$10,791 million in 2018, assets increased to US$11,399 million in 2019. The growth continued at a slower pace with US$11,540 million in 2020 and reached US$11,819 million by 2021. The upward trajectory may reflect ongoing expansion, capital expenditures, or acquisitions within the packaged beverages segment.
- Beverage Concentrates
- The Beverage Concentrates segment holds the largest amount of identifiable operating assets among all segments, consistently above US$19 billion over the period. The assets increased from US$19,916 million in 2018 to US$20,447 million in 2019 and then showed minimal growth in subsequent years, reaching US$20,575 million in 2020 and US$20,674 million in 2021. This pattern suggests relative stability in asset levels, possibly indicating mature operations with limited fluctuations in capital employed.
- Latin America Beverages
- Unlike other segments, the Latin America Beverages segment displays a different pattern. Identifiable operating assets were US$1,820 million in 2018 and rose slightly to US$1,856 million in 2019. However, the assets declined to US$1,763 million in 2020 and remained flat at this level in 2021. This decrease could reflect asset disposals, restructuring, or reduced investment in this region compared to other segments.
- Total
- The aggregate identifiable operating assets across all segments show moderate growth, from US$47,644 million in 2018 to US$49,932 million in 2021. The most significant increase occurred between 2018 and 2019, with subsequent years showing more subdued growth. This overall pattern aligns with the segmental observations of steady or stable asset bases with selective increases, highlighting cautious asset management and incremental growth.