Green Mountain Coffee Roasters, Inc. Reports 102 Percent Gain In First Quarter Sales

Green Mountain Coffee Roasters, Inc., a provider of specialty coffee and coffee makers, announced its fiscal year 2012 first quarter results for the thirteen weeks ended Dec. 24, 2011.

First quarter net sales of $1,158.2 million, up 102 percent over net sales of $574.1 million in the year-ago quarter.

Generally Accepted Accounting Principles (GAAP) earnings per share (EPS) was $0.66 compared to first quarter fiscal year 2011. GAAP EPS was $0.02; non-GAAP EPS was $0.60, increasing 233 percent over $0.18 in the year-ago quarter.

GAAP operating income was $145.8 million compared to first quarter fiscal year 2011. GAAP operating income was $23.3 million; non-GAAP operating income was $158.0 million, improving 258 over the year-ago quarter.

GAAP net income of $104.4 million compared to first quarter fiscal year 2011 GAAP net income of $2.4 million; non-GAAP net income of $96.0 million increased 264 percent over the year-ago quarter.

"North American consumers continue to embrace the convenience, choice and consistent experience provided by the Keurig® single cup brewing system and, as evidenced by our strong holiday sales, are encouraging friends and family to do the same," said Lawrence J. Blanford, GMCR's president and CEO in a prepared statement. "We believe our sales in the period were, in part, the result of our efforts to ensure strong in-stock positions on store shelves as well as due to growing awareness of the Keurig® brand which was aided by our nationwide advertising and strong in-store merchandising."

With increasing consumer adoption, the Keurig® single Cup brewing system, supported by GMCR's growing family of owned and non-owned beverage brands in K-Cup® packs, is changing the way North America brews its coffee and other beverages.

"The value of single-serve, at-home brewing seems to be resonating with consumers," added Blanford. "According to NPD Group, in calendar 2011, sales of single-serve coffee makers accounted for 50 percent of the total dollars consumers spent overall in the coffee maker category. The Keurig® single cup brewing system has set the bar for consumers' single-cup experience, and drove an estimated 35 percent unit share of all coffee makers during the October through December 2011 period according to NPD."

Approximately 90 percent of consolidated first quarter fiscal year 2012 net sales were from sales of Keurig® single cup brewers, K-Cup® packs, and Keurig®-related accessories, with the remainder of net sales consisting primarily of sales of bagged coffee and sales from the office coffee services business.

GMCR sold 4.0 million Keurig® single cup brewers during the first quarter of fiscal year 2012. This brewer shipment number does not account for consumer returns.

The company estimates that the combination of brewer shipments from GMCR and its licensed partners resulted in shipments of 4.2 million Keurig® single cup brewers in the first quarter of fiscal year 2012.

The year-over-year increase in K-Cup® pack sales was driven by an 81 percentage point increase in K-Cup® pack sales volume, a 21 percentage point increase in K-Cup® pack net price realization due to price increases implemented during fiscal year 2011 to offset higher green coffee and other input costs, and a 13 percentage point increase in K-Cup® pack net sales due to the acquisition of Van Houtte.

Net sales from Van Houtte, acquired in December 2010 and part of the Canadian business unit, contributed approximately $111.9 million to consolidated net sales in the first quarter of fiscal year 2012, an increase of $103.1 million compared to the prior year period.

First quarter of fiscal year 2012 gross profit of $336.6 million represented gross margin of 29.1 percent of net sales compared to 25.0 percent for the corresponding quarter in fiscal year 2011.