By Tess Stynes
Keurig Green Mountain Inc. said earnings rose 11% in the
September quarter led by continued demand for the company's
single-serve coffee packs.
The company also announced that Chief Financial Officer Frances
G. Rathke, an 11-year company veteran, plans to leave next year but
will stay on as financial chief and treasurer until Keurig names a
successor. Afterward she will serve as strategic adviser to Chief
Executive Brian Kelley, remaining in the role no later than Sept.
26. Ms. Rathke, 54 years old, joined Keurig in 2003 as its
financial chief and treasurer.
For the current quarter ending in December, Keurig forecast
per-share earnings of 83 cents to 88 cents and net sales growth in
the high single digits on a percentage basis. Analysts polled by
Thomson Reuters expected per-share profit of 96 cents and revenue
growth of 17%.
Keurig is striving to expand beyond its core business of selling
coffee machines and single-serve K-cup packets, and has continued
to add partnerships with branded and private-label coffee sellers.
In addition to its new Keurig brewer, the company has been working
on a cold beverage system in a deal with Coca-Cola Co., as both
companies seek to expand into new markets.
During the latest quarter, the company began selling its
next-generation Keurig 2.0 system, which can brew versions of its
single-serve coffee pods as well as a whole carafe of coffee. The
company's previous brewers made for home kitchens can't produce as
many types of coffee, nor as many servings with one pod. The new
system also is incompatible with unlicensed coffee pods.
For the period ended Sept. 27, Keurig reported a profit of
$141.1 million, or 86 cents a share, up from $127 million, or 83
cents a share, a year earlier. Excluding one-time items, earnings
rose to 90 cents from 89 cents. Revenue increased 14% to $1.2
billion.
The company expected per-share earnings of 68 cents to 75 cents
and net sales growth in the high single to low double digits on a
percentage basis.
Keurig's sales of portion packs rose 22% to $948.7 million,
mostly owing to sales volume growth. Sales of brewers and
accessories declined 5% to $181.6 million, most owing to a higher
provision for sales returns related to certain models of its Keurig
1.0 "Mini Plus" brewers.
The company's board also authorized a 15% increase in its
quarterly dividend, raising the payout to shareholders to $1.15 a
share from $1.
For fiscal 2015, the company forecast per-share earnings growth
in the mid-single to high-single digits on a percentage basis and
net sales growth in the high-single to low-double digits. Analysts
polled by Thomson Reuters expected per-share profit growth of 9% to
$4.13 a share and revenue growth of 16%.
Write to Tess Stynes at tess.stynes@wsj.com
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