GMCR Net Climbs 58.6 Percent in Q3; Names Ostryniec to Head Product Supply
WATERBURY, Vt.-Net income for Green Mountain Coffee Roasters (GMCR) rose 58.6 percent in its fiscal third quarter, to $116.3 million.
The company has also hired former H.J. Heinz executive Robert Ostryniec as its chief product supply officer.
Net profit received a boost from an 11.3 percent gain in net sales, which totaled $967.1 million in the quarter, which ended on June 29. Most of the fuel for the top line came from an 18 percent increase in sales of Keurig-branded single-serve packs, which offset a 4 percent decline in sales of Keurig brewers.
Also helping the bottom line was a 725 basis-point increase in gross margin, which finished the quarter at 42.2 percent. Selling, general and administrative expenses increased 23.4 percent in dollars and 219 basis points as a percentage of sales, to 22.2 percent.
For the fourth quarter, GMCR is forecasting net sales growth of from 11 to 15 percent. For the full fiscal year, net sales is expected to rise by from 13 to 14 percent.
Ostryniec's new post, a newly created position for GMCR, has put him in charge of global product supply including logistics, procurement and "responsible sourcing," according to a GMCR statement. He reports to President and CEO Brian Kelley.
Prior to joining GMCR, Ostryniec was senior vice president, global chief supply chain officer and quality and chief risk officer for Heinz.