Green Mountain sees single-serve pack sales rise 21% in first quarter

by Keith Nunes
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WATERBURY, VT. — Sales of single-serve packs of coffee rose 21% during the first quarter of fiscal 2013 for Green Mountain Coffee Roasters. The single-serve sales increase supported the company’s net income of $107,583,000 in the quarter ended Dec. 29, 2012, equal to 72c per share on the common stock, and a slight increase compared with the first quarter of fiscal 2012, when net income was $104,414,000, or 67c per share.

Sales for the quarter were $1,339,059,000, which compared with $1,158,216,000 during the previous year.

The company said the increase in single-serve pack sales was driven by a 26% increase in sales volume that was offset by a 4% decrease due to single-serve pack product mix and a 1% decrease due to net price realization.

“The Keurig Single Cup brewing system is a powerful breakthrough for the beverage business, with significant untapped potential in the U.S. and globally,” said Brian P. Kelley, president and chief executive officer. “We are in the early days of a marked evolution in how consumers purchase, prepare and customize hot beverages in their homes. With a robust innovation pipeline and a growing awareness and commitment to the Keurig brand, G.M.C.R. is well positioned to continue to lead this disruptive shift in consumer behavior.”

There were a total of 4.95 million Keurig brewers sold during the quarter, an 18% increase compared with the previous year. Sales for G.M.C.R.’s Brewers and Accessories business unit rose 14% during the quarter, from $330.4 million during the first quarter of fiscal 2012 to $377.3 million during the same quarter of fiscal 2013.

“For the remainder of the year, we expect to see continued year-over-year gross margin improvement due to lower green coffee costs and ongoing brewer quality improvements,” Mr. Kelley said. “While we expect growth will continue to moderate in the overall total coffee and espresso maker category, we also expect our share of the category to continue to increase driving further expansion of our installed Keurig brewer base. Consistent with our previous outlook, we estimate total fiscal year 2013 net sales growth in the range of 15% to 20% over fiscal year 2012.”
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