Income rises 10% at Peet's Coffee & Tea

by FoodBusinessNews.net Staff
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EMERYVILLE, CALIF. — For the third quarter ended Oct. 2, net income at Peet’s Coffee & Tea totaled $2,216,000, equal to 16c per share on the common stock, up 10% from $2,009,000, or 15c per share, in the same period last year.

Net sales for the quarter rose 24% to $42,854,000, up from $34,466,000 in the same period last year.

"We are pleased with the progress we are making in executing our growth strategy, as indicated by our results this quarter," said Patrick O’Dea, president and chief executive officer of Peet’s Coffee & Tea, Inc. "Our retail and specialty businesses both performed well, and we are on track to open 20 new Peet’s stores this year."

Retail revenue increased 20% to $28,719,000 from $23,917,000 for the corresponding period of fiscal 2004. The increase was primarily attributable to new retail stores opened in the last 12 months and secondarily to growth in existing stores. The company opened five stores in the quarter.

Specialty revenue increased 34% to $14,135,000, compared with $10,549,000 last year. Within specialty sales, the grocery business continues to grow the most rapidly, up 53% over last year, with existing grocery customers accounting for the majority of the increase.

The food service business also grew significantly at 36%, followed by the office business at 33%, both benefiting from new customers added in the last 12 months. Home delivery sales grew 11%.

The company reaffirmed its earnings guidance and raised its sales guidance for both the fourth quarter and full year. The company expects earnings of approximately 24c per share and sales growth of 12% to 13% in the fourth quarter.

For the full year the company is forecasting earnings per share of 74c per share and total net revenue growth of 22%.

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