GMCR Posts Strong Net Gain for Q4
WATERBURY, Vt.-Keurig parent Green Mountain Coffee Roasters (GMCR) posted net-income increases of 38.2 percent and 35.6 percent for its fourth quarter and fiscal year, respectively.
Net income in the fourth quarter, which ended on Sept. 28, was $127 million, bringing the bottom-line total for the year to $517.6 million. Net sales in the quarter rose 10.6 percent to $1 billion. For the year as a whole, net sales reached $4.4 billion, up 12.9 percent over the prior year.
Brian Kelley, GMCR's president and CEO, said the results were driven by "continued consumer passion for the Keurig brewing system." Kelley cited "robust brewer sales and continued portion-pack sales momentum." Indeed, sales of portion packs rose 18 percent during the year, while sales of brewers and accessories logged a 9 percent gain.
In the quarter, the bottom line got a boost from a 264 basis-point improvement in gross margin, to 36 percent. Selling, general and administrative expenses rose 14.4 percent in dollars and 40 basis points as a percentage of sales, to 12.1 percent.
Over the long term, Kelley said GMCR is expecting double-digit increases in revenues and earnings, coming from the introduction of a new hot single-serve system (of which a company statement did not provide details). "For fiscal 2014," he said, "we expect net sales growth in the high single digits with some variability quarter to quarter, as we anticipate rolling out new products to customers and managing the transition from prior generations of products."