Keurig Q3 bolstered by K-cup sales; revenues fall short

Keurig Q3 bolstered by K-cup sales; revenues fall short

Keurig Green Mountain said fiscal third-quarter earnings rose 33% on strong sales of coffee machines and K-cup coffee pods, but revenues failed to meet Wall Street’s expectations.

For the three-month reporting period ended June 28, Keurig said it had a profit of $155.2 million, or 94 cents a share, up from $116.3 million, or 76 cents a share, a year earlier.

Excluding one-time items, earnings rose 21% to 99 cents a share from 82 cents, ending a three-quarter string of slowing growth. But revenues rose just 6% to $1.02 billion, slightly missing analysts’ estimates of $1.05 billion. Gross profits rose to 43.5% from 42.1%.

The company also warned that results from the present quarter will likely be less than anticipated, forecasting sales growth will be in the high single digits to low double digits. Analysts have forecast growth of 11%.

Keurig 2.0 launch ‘immiment’,says CEO

"Our solid year-over-year brewer shipment growth of 13% and our 15% unit growth in portion packs is indicative of the continued expansion of the Keurig system across the US and Canada," said CEO Brian Kelley in a press release. "We also are excited about the imminent launch of our new Keurig 2.0 hot platform; the addition of formerly unlicensed and new brands to the Keurig hot beverage system during the quarter; and our progress on the new Keurig Cold beverage system."

Keurig is looking to expand beyond its core business of selling coffee brewers and K-cups as the category becomes increasingly crowded. (Read about an aggressive new player in the single cup market.) In addition to developing a next-generation Keurig brewer to cut back on copycat K-cups, the company is working on an at-home carbonated beverage system in a deal with Coca-Cola Co., which it plans to roll out in 2015.

Related News

Keurig Green Mountain will launch Keurig Cold next fall

Keurig Green Mountain expects quick consumer uptake when Keurig Cold launches next fall

Keurig Green Mountain expands hot options as it preps for cold launch

Keurig Green Mountain expands hot options even as it prepares for cold launch

‘Keurig Cold will be a second disruptive global platform for our company’, says Keurig Green Mountain CEO

‘Keurig Cold will be a second disruptive global platform for our company’, says Keurig Green Mountain CEO

Zevia CEO: 'US consumers have rejected mid-calorie sodas resoundingly'

Beverage Entrepreneurs Forum: Is mid-calorie cola a failed concept, why Keurig Cold may disappoint, and is ‘healthy’ in the eye of the beholder?

GMCR CEO: 'We anticipate a large number of current Keurig users choosing to switch into the new system because it's a better one.'

Green Mountain Coffee Roasters: ‘Game-changing’ Keurig 2.0 will tackle unlicensed K-Cup challenge

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.