Keurig Boosts Green Mountain Fourth Quarter
December 10, 2010,
WATERBURY, Vt.--Sales of Keurig brewers and K-Cup portion packs fueled Green Mountain Coffee Roasters, Keurig's parent company, to huge gains in sales and profits in the fourth quarter.
Green Mountain's net income rose 92 percent in the quarter to $27 million, and the company reported a 73 percent gain in net sales, which totaled $373.1 million. In its statement on the results, Green Mountain said Keurig brewers and K-Cups represented about 90 percent of its overall sales in the quarter, which ended on Sept. 25. K-Cup sales increased 115 percent in the quarter, and unit shipments were 80 percent up over the fourth quarter of last year. Brewer sales increased 48 percent in the quarter.
Green Mountain's gross margin did fall 150 basis points in the quarter, which the company attributed to an increase in brewer sales returns, a rise in brewer warranty expense and increased costs for green coffee. Selling, operating, general and administrative expenses rose 63 percent in dollars but fell 116 basis points as a percentage of sales.
For the fiscal year as a whole, Green Mountain logged a 46 percent increase in net income to $79.5 million, and grew sales by 73 percent to nearly $1.4 billion. The company is projecting a 45 to 53 percent gain in net sales for fiscal year 2011.