Charges weigh on Green Mountain income
January 28, 2010
by Eric Schroeder
WATERBURY, VT. — Net income at Green Mountain Coffee Roasters, Inc. in the first quarter ended Dec. 26, 2009, totaled $12,494,000, equal to 29c per share on the common stock, down 13% from $14,384,000, or 39c per share, in the same period last year. Net income in the first quarter included approximately $5 million of transaction expenses related to the acquisition of Timothy’s Coffees of the World, Inc. in November 2009, as well as the pending acquisition of Diedrich Coffee, Inc.
Net sales for the quarter rose sharply, gaining 77% to total $349,363,000.
Green Mountain attributed the strong sales growth to an $86 million increase in total K-Cup net sales and a $57 million increase in Keurig brewer and accessories sales. The company said approximately 87% of consolidated sales during the second quarter were from the Keurig Brewing System and its recurring K-Cup portion pack revenue.
“Our company continues to deliver superb financial results that demonstrate the resiliency and transformative nature of our unique business model,” said Lawrence J. Blanford, president and chief executive officer. “The Keurig Single-Cup Brewing System and our growing family of brands and K-Cup portion pack products are changing the way consumers in North America prepare and enjoy their coffee and other beverages.”
Mr. Blanford said Green Mountain is raising its full-year earnings-per-share guidance to $1.95 to $2.05 from earlier estimates of $1.85 to $1.95.