Keurig Boosts Green Mountain Third-Quarter Results
WATERBURY, Vt.-Keurig and its Single-Cup Brewing System played a significant role in parent company Green Mountain Coffee Roasters' dramatic sales and bottom-line growth in the company's fiscal third quarter, according to a statement from Green Mountain.
Net income for the quarter jumped 31 percent to $18.6 million, and net sales rose 64 percent to $311.5 million. The statement said shipments of Keurig's K-Cup portion packs and brewers had a major impact, with K-Cup shipments increasing 72 percent over the third quarter of last year and brewer shipments almost doubling in the quarter. The statement said these shipment increases were "the two primary drivers" in Green Mountain's overall sales growth.
In addition, Green Mountain reported a 159 basis-point rise in its third-quarter gross margin, which finished at 35.2 percent. Selling and operating expenses increased 62 percent, and general and administrative expenses doubled. However, thanks to Green Mountain's sales growth, both cost figures remained in check as a percentage of sales.
Lawrence Blanford, president and chief executive officer of Green Mountain, said the third quarter marked the company's 11th consecutive quarter of net sales growth of better than 40 percent. "For the first nine months of fiscal 2010, we have produced net sales growth of 70 percent and non-GAAP earnings-per-share growth of 80 percent over the same period for fiscal 2009," Blanford said.