Keurig Q2 Net Rises 22.4 Percent
WATERBURY, Vt.-Strong sales and a tight hand on expenses propelled Keurig Green Mountain to a 22.4 percent jump in second-quarter net income, to $162.1 million.
Net sales rose 9.8 percent to $1.1 billion in the quarter, which ended on March 29. Selling, general and administrative expenses were flat in dollars and declined by 109 basis points as a percentage of sales, to 11.3 percent. Gross margin edged up 15 basis points to 41.5 percent.
Brian Kelley, Keurig Green Mountain's president and CEO, said the positive performance on both the top and bottom lines, after a healthy holiday season, "demonstrates the continued opportunity to grow our Keurig system in North America in a very competitive environment." Kelley said the company drove strong sales of both brewers and portion packs and accelerated its installed base during the quarter. Portion-pack sales were up 13 percent, while brewers and accessories gained 9 percent in sales.
Kelley added that the company's short-term focus will be on introducing the Keurig 2.0 hot system, bringing in additional brands as new partners and preparing for the launch of the Keurig cold system in 2015. Meanwhile, Keurig Green Mountain is anticipating sales growth in the high single digits for the balance of the fiscal year.