GMCR Posts 28.5 Percent Net Gain in Q1
WATERBURY, Vt.-Keurig brand parent Green Mountain Coffee Roasters (GMCR) began its fiscal year with a 28.5 percent jump in net income, which totaled $138.2 million.
Expenses controls helped fuel the bottom-line growth. Operating expenses in the quarter, which ended on Dec. 28, were virtually flat in dollars and declined 56 basis points to 17.1 percent. Gross margin was bolstered by 216 basis points to 33.5 percent.
GMCR's net sales benefited from what Brian Kelley, president and CEO, termed "our best holiday season ever. The top line gained 3.6 percent to $1.4 billion, and Kelley said GMCR "achieved record brewer volume, revenue and retail sell-through despite a challenging holiday season for many retailers." The company posted a record 5.1 million Keurig system brewers sold during the quarter.
Looking ahead to the remainder of the fiscal year, Kelley said GMCR expects sales to accelerate due to a higher installed base of Keurig brewers, ongoing conversion and on-shelf availability of packs converted from unlicensed to licensed participants in the Keurig system. Net sales should increase in the high single digits in fiscal 2014, with some variability from quarter to quarter as the company works with its customers to manage the transition to the next-generation Keurig 2.0 brewers and packs, Kelley said.