GMCR Posts Strong Net Gain for Q4

GMCRWATERBURY, Vt.-Keurig parent Green Mountain Coffee Roasters (GMCR) posted net-income increases of 38.2 percent and 35.6 percent for its fourth quarter and fiscal year, respectively.

Net income in the fourth quarter, which ended on Sept. 28, was $127 million, bringing the bottom-line total for the year to $517.6 million. Net sales in the quarter rose 10.6 percent to $1 billion. For the year as a whole, net sales reached $4.4 billion, up 12.9 percent over the prior year.

Brian Kelley, GMCR's president and CEO, said the results were driven by "continued consumer passion for the Keurig brewing system." Kelley cited "robust brewer sales and continued portion-pack sales momentum." Indeed, sales of portion packs rose 18 percent during the year, while sales of brewers and accessories logged a 9 percent gain.

In the quarter, the bottom line got a boost from a 264 basis-point improvement in gross margin, to 36 percent. Selling, general and administrative expenses rose 14.4 percent in dollars and 40 basis points as a percentage of sales, to 12.1 percent.

Over the long term, Kelley said GMCR is expecting double-digit increases in revenues and earnings, coming from the introduction of a new hot single-serve system (of which a company statement did not provide details). "For fiscal 2014," he said, "we expect net sales growth in the high single digits with some variability quarter to quarter, as we anticipate rolling out new products to customers and managing the transition from prior generations of products."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Macy’s Discusses Virtual Reality Test at HFN’s Omnichannel Summit

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover October 2017

    HFN's DIGITAL EDITION

    October 2017


    COVER STORY:

    One Kings Lane Flashes Forward

    Formerly a flash-sale only website, One Kings Lane—now under the ownership of Bed Bath & Beyond—evolves into a lifestyle retailer with a new physical presence.


    ALSO IN THIS ISSUE:

      •  HFN Tech & Omnichannel Study- Although e-commerce shopping is increasing dramatically among consumers, home retailers lag in their current and future tech investments and implementation.
      • Market Previews: High Point & Tabletop- The newest collections and influencer trends emerge in our High Point Market and N.Y. Tabletop Show special sections.