Keurig Dr Pepper Inc (NYSE:KDP) Q1 2020 Earnings Conference Call - Final Transcript

Apr 27, 2020 • 05:00 pm ET


Keurig Dr Pepper Inc (NYSE:KDP) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Keurig Dr Pepper's Earnings Call for the First Quarter of 2020. [Operator Instructions] I would now like to introduce your host for today's conference, Keurig Dr Pepper 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 afternoon, we issued our press releases for the first quarter of 2020. If you need a copy, you can get one on our website at in the Investor section. Consistent with previous quarters, today, we will be discussing our performance on an adjusted basis, excluding items affecting comparability. The company believes that the adjusted basis provides investors with additional insight into our business and operating performance trend. While the exclusion of items affecting comparability is not in accordance with GAAP, we believe that the adjusted basis provides 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-Q, which will be filed later this week. 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 first quarter 2020 results are KDP Chairman and CEO, Bob Gamgort; our CFO, Ozan Dokmecioglu; and our Chief Corporate Affairs Officer, Maria Sceppaguercio.

And finally, our discussion this afternoon may include forward-looking statements, which are subject to the Safe Harbor provisions of the 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. With that, I'll hand it over to Bob.

Robert Gamgort

Thanks, Tyson. Let me start by expressing my sincere hope that everyone dialed in is safe and healthy. And I want to thank you all for joining us this afternoon. As you can see from our Q1 results, we started the year in a strong manner, with financial delivery very much in line with our long term targets and with continued strong free cash flow and deleveraging. We expanded market share across the majority of our portfolio and believe that we were just getting started as we began to introduce our best lineup of innovation yet.

The continued underlying strength of our business is reflected in the results we reported today as COVID-19 had only a modest impact on us in the first quarter. Ozan will take you through some of the relevant highlights from the first quarter that carry over into the full year but I want to acknowledge that Q1 represents a very different environment than the one we're operating in today.

Therefore, I want to focus my comments on the