Green Mountain Net Falls 78 Percent in First Quarter

Keurig brewers boosted Green Mountain sales

Keurig brewers boosted Green Mountain sales

WATERBURY, Vt.—Net income for Green Mountain Coffee Roasters, parent company of the Keurig brand, dropped 78 percent to $2.2 million in its fiscal first quarter, which ended on Dec. 25, 2010.

The decline reflected charges and credits related to Green Mountain’s acquisition of Van Houtte, a Canada-based coffee manufacturer; without those charges, the company’s net jumped 73 percent to $15.1 million. In addition, gross margin fell 258 basis points to 25.1 percent. Selling, operating, general and administrative expenses rose 59 percent on a dollar basis, but decreased 110 basis points as a percentage of sales to 21.1 percent.

In terms of net sales, major gains in Keurig brewers and K-Cup portion packs propelled Green Mountain to a strong first quarter. The company posted a 67 percent increase in net sales in the quarter to $575 million. About 91 percent of the sales total resulted from Keurig products. Sales of K-Cups increased 89 percent in the quarter, while brewer sales rose 58 percent.