WATERBURY, Vt.-The increasing sales of Keurig products provided yet another booster to Green Mountain Coffee Roasters in its fiscal first quarter, bringing a dramatic 4,290 percent gain in net income to $104.4 million.
The company’s net sales in the quarter, which ended on Dec. 24, jumped 102 percent to $1.2 billion. The main drivers were a 115 percent rise in sales of Keurig K-Cup Packs, a 76 percent increase in sales of Keurig brewers and a 111 percent pickup in sales from other products and royalties. Keurig products accounted for about 90 percent of the first quarter’s sales for Green Mountain, the company said in a statement.
The company also did well below the bottom line. Gross margin rose 405 basis points to 29.1 percent, mostly due to price increases on Keurig products. Selling, general and administrative expenses, while increasing 81 percent in dollars, fell 143 basis points as a percentage of sales to 12.2 percent.
Lawrence Blanford, Green Mountain’s president and CEO, said consumers are continuing “to embrace the convenience, choice and consistent experience” provided by Keurig products. “The value of single-serve, at-home brewing seems to be resonating with consumers,” Blanford said.