Keurig Propels Green Mountain Coffee Roasters to Strong Fourth Quarter
November 10, 2011,
WATERBURY, Vt.-The continued growth of Keurig's single-serve coffee and brewers resulted in strong pickups in both profit and sales for parent company Green Mountain Coffee Roasters in its fiscal fourth quarter.
Net income jumped 179 percent to $75.4 million as net sales rose 91 percent to $711.9 million. For the fiscal year as a whole, net income increased 151 percent to $199.5 million, and net sales were up 95 percent to $2.7 billion. Lawrence Blanford, Green Mountain's president and CEO, said, "We are seeing continued evidence of strong consumer demand for both brewers and portion packs from our customers and from third-party sources that track consumer purchases." Indeed, sales for K-Cup Portion Packs rose 104 percent for the fiscal year, while sales of brewers and accessories gained 59 percent.
For the fourth quarter, gross margin increased 528 basis points to 35.7 percent, helped along by price increases on K-Cups and a lower percentage of sales of brewers, the majority of which are sold at cost. Selling, general and administrative expenses were up 105 percent in dollars and 146 basis points as a percentage of sales, to 20.7 percent.
A Green Mountain statement said the company anticipates the momentum to continue into the first quarter of fiscal 2012, with a gain in net sales of between 85 percent and 90 percent.