WATERBURY, Vt.–Green Mountain Coffee Roasters, parent company of the Keurig line of single-serve coffeemakers, pumped up net income by 123 percent in its fiscal third quarter, to $14.1 million.
Much of the credit goes to the company’s top-line performance, in which Keurig products played a leading role. Net sales rose 61 percent in the quarter, reaching $190.5 million, fueled in part by a 187 percent jump in shipments of Keurig brewers and a 64 percent rise in shipments of Keurig’s patented K-Cup portion packs. In addition, Green Mountain narrowed selling, general and administrative expenses as a percentage of sales by 470 basis points to 21.7 percent, leading to a doubling of its operating income to $22.8 million.
Commenting on these results, Lawrence Blanford, Green Mountain’s president and chief executive officer, said the company’s net sales growth has averaged 56 percent over the last 12 fiscal quarters. Blanford noted Keurig’s part in boosting the parent company’s performance, and said the company would continue to take advantage of the opportunities from Keurig. Recent licenses of Keurig’s technology for the Cuisinart and Mr. Coffee brands should provide additional momentum to Green Mountain’s sales growth going forward, Blanford said.