Keurig Green Mountain Net Up 33.4 Percent in Q3
WATERBURY, Vt.-With sales of the company's single-cup brewing products continuing to drive growth, Keurig Green Mountain posted net income of $155.2 million, an increase of 33.4 percent, in its fiscal third quarter ending on June 28.
Net sales gained 5.7 percent to finish the quarter at $1 billion. Much of the top-line increase came from a 10 percent increase in net sales of portion packs, which was partly offset by a 4 percent decline in sales of Keurig brewers and accessories.
Also helping the bottom line, gross margin picked up 134 basis points to 43.5 percent. Selling, operating, general and administrative expenses slipped 0.5 percent in dollars and 130 basis points as a percentage of sales, to 20.9 percent.
Brian Kelley, Keurig Green Mountain's president and CEO, said, "Our solid year-over-year brewer shipment growth of 13 percent and our 15 percent unit growth in portion packs is indicative of the continued expansion of the Keurig system across the U.S. and Canada. We also are excited about the imminent launch of our new Keurig 2.0 hot platform, the addition of formerly unlicensed and new brands to the Keurig hot beverage system during the quarter and our progress on the new Keurig Cold beverage system."
In releasing its third-quarter financials, Keurig Green Mountain added that it expects sales growth for the whole fiscal year to register in the high single digits compared to fiscal 2013.