WATERBURY, Vt.-Another strong performance from the Keurig line of single-serve brewers and beverage cups drove parent company Green Mountain Coffee Roaster (GMCR) to an increase of 30 percent in third-quarter net income, to $73.3 million.
GMCR’s net sales in the quarter, which ended on June 23, totaled $869.2 million, up 21.1 percent over the third quarter of last year. Sales in the quarter included a 31 percent jump in sales of single-serve beverage packs and a 32 percent gain in sales of brewers and accessories. Notable in the latter category with the $20 million in sales racked up by the Vue brewer and Vue packs, which were launched last year.
GMCR’s third-quarter gross margin finished at 34.9 percent, down 192 basis points from last year. Operating expenses rose 19.9 percent but were down 22 basis points as a percentage of sales, to 20 percent.
While noting GMCR’s third-quarter successes, Lawrence Blanford, president and CEO, added, “As we become larger…our sales growth trajectory will understandably moderate from hyper-growth to a level more in line with other successful growth businesses.” Blanford said GMCR expects to deliver sales growth in the range of 15 to 20 percent, along with earnings growth in the mid-teens, over the long term.