Green Mountain Net Edges Up 3 Percent in Q1
WATERBURY, Vt.-Strong sales the company's Keurig products offset a significant gain in expenses to bring Green Mountain Coffee Roasters (GMCR) to a 3 percent increase in net income in its fiscal first quarter, to $107.6 million.
Net sales in the quarter, which ended on Dec. 29, increased 15.6 percent to $1.3 billion, once again powered by strong gains in sales of Keurig-branded products. Sales of single-serve packs were up 21 percent in the quarter, while sales of brewers and accessories posted a 14 percent increase. Taken together, Keurig product sales accounted for 93 percent of GMCR's top line in the quarter.
Selling, general and administrative expenses rose 24.1 percent in dollars and 121 basis points as a percentage of sales, to 17.7 percent. Gross margin picked up 224 basis points to finish at 31.3 percent.
According to Brian Kelley, GMCR president and CEO, said Keurig has the potential to push the company still further ahead. "We are in the early days of a marked evolution in how consumers purchase, prepare and customize hot beverages in their homes," Kelley said. He added that GMCR is "well positioned" to lead this shift in consumers' behavior with further product innovations and its commitment to the Keurig brand.