Green Mountain net soars behind Keurig system sales
July 28, 2011
by Eric Schroeder
WATERBURY, VT. — Continued strong consumer adoption of the Keurig Single-Cup Brewing system propelled a sharp increase in third-quarter earnings at Green Mountain Coffee Roasters, Inc. Net income in the third quarter ended June 25 was $56,348,000, equal to 38c per share on the common stock, up 206% from $18,400,000, or 14c per share, in the same period a year ago. Net sales in the third quarter soared 127% to $717,210,000 from $316,583,000.
“In addition to continued strong consumer adoption of the Keurig Single-Cup Brewing system, we believe our third quarter benefitted from our first-ever significant spring advertising and brand support programs, designed to raise awareness of the Keurig Single-Cup Brewing system and of our Brew Over Ice Teas and Coffees, perfect for the summer months,” said Lawrence J. Blanford, president and chief executive officer. “Keurig brewing is truly changing the way North America brews and enjoys coffee at home and in the workplace. We have seen awareness of the Keurig Single-Cup Brewing system grow faster and more broadly than we could have imagined just a few years ago.”
G.M.C.R. attributed 82% of consolidated net sales during the third quarter to the Keurig brewing system and its recurring portion pack sales. Net sales from portion packs totaled $485.4 million, up 136% from the same period in fiscal 2010.
Meanwhile, G.M.C.R. said the acquisition of Van Houtte, completed on Dec. 17, 2010, contributed $111.7 million to consolidated net sales during the quarter.
Looking ahead to fiscal 2012, G.M.C.R. said it expects total consolidated net sales growth of 60% to 65% from fiscal 2011, and fiscal 2012 non-GAAP earnings per share in a range of $2.55 to $2.65, which would compare with expected e.p.s. of $1.63 to $1.67 in fiscal 2011.