Keurig Boosts Green Mountain to 42 Percent Net Gain in Q2
WATERBURY, Vt.-Sales of Keurig products continued to fuel parent company Green Mountain Coffee Roasters in its fiscal second quarter.
Net income for Green Mountain reached $93 million, up 42 percent over the second quarter of the prior fiscal year, and driven by a net sales gain of 37 percent to $885.1 million. Green Mountain said sales of Keurig products accounted for about 90 percent of the company's overall sales in the quarter, which ended on March 24. Sales of Keurig K-Cup portion packs were up 59 percent in the quarter, while brewer sales rose 21 percent.
Gross margin in the quarter was slimmed by 213 basis points to 35.4 percent. Selling, general and administrative expenses jumped 39 percent in dollars and 24 basis points as a percentage of sales, to 12.6 percent.
Looking ahead, Lawrence Blanford, Green Mountain's president and CEO, said the company is expecting a more moderate growth trajectory for Keurig products, given the recent increases in the number of Keurig brewers in use in households over the past year. Blanford added, however, that the "installed base" of household brewers still represents a relatively small percentage of total U.S. households, allowing room for more growth going forward.