Keurig Dr Pepper Inc (NYSE:KDP) Q4 2019 Earnings Conference Call - Final Transcript

Feb 27, 2020 • 08:00 am ET


Keurig Dr Pepper Inc (NYSE:KDP) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Keurig Dr Pepper's Earnings Call for the Fourth Quarter and the Full Year of 2019. This conference call is being recorded, and there will be a question-and-answer session at the end of the call.

I would now like to introduce your host for today's conference, Keurig Dr Pepper's Vice President of Investor Relations, Mr. Tyson Seely. Mr. Seely, please go ahead.

Tyson Seely

Thank you, and hello, everyone. Thanks for joining us. Earlier this morning, we issued two press releases, one announcing that we entered into a long-term strategic agreement with Nestle USA to continue manufacturing Starbucks-branded packaged coffee and K-Cup pods in the U.S. and Canada. The second press release we issued was for the fourth quarter and full year 2019 results. If you need copies the releases are available on our website at

Consistent with previous quarters, today we will be discussing our performance on an adjusted basis, excluding items affecting comparability and with regard to the year ago period for the full fiscal year. Our financial performance also takes into account pro forma adjustments due to the merger. The Company believes that the adjusted and adjusted pro forma basis provide investors with additional insight into our business and operating performance trends.

While these two -- while these pro forma adjustments and the exclusion of items affecting comparability are not in accordance with GAAP, we believe that adjusted and adjusted pro forma basis provide meaningful comparisons and an appropriate basis for discussion of our performance. Details of the excluded items are included in the reconciliation tables included in our press release and our 10-K, which will be filed later today. Due to the inability to predict the amount and timing of certain impacts outside of the Company's control, we do not reconcile our guidance.

Here with me today to discuss our fourth quarter and full year 2019 results and our outlook for 2020 are KDP Chairman and CEO, Bob Gamgort; our CFO, Ozan Dokmecioglu; and our Chief Corporate Affairs Officer, Maria Sceppaguercio.

And finally, our discussion this morning may include forward-looking statements, which are subject to the Safe Harbor provisions of this Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, and the Company undertakes no obligation to update these statements based upon subsequent events. A detailed discussion of these risks and uncertainties is contained in the Company's filings with the SEC.

Before turning it over to Bob, I'd like to share that KDP is hosting a sell-side analyst event on March 19, 2020 which will be webcasted live. As we get closer to the event, we will issue a press release providing more details. But for now please mark your calendars for a 2:00 p.m. to 4:00 p.m. Eastern live webcast.

With that, I'll hand it over to Bob.

Robert Gamgort

Thanks, Tyson, and thanks to everyone for dialing in. Two