WATERBURY, Vt.--(BUSINESS WIRE)-- Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology, today announced its business results for the 13 weeks ended December 27, 2014.
Net Sales by Product
Net sales of $1.4 billion were in-line with the prior year quarter primarily driven by lower brewer and accessory sales partially offset by growth in portion packs. Net sales growth in the quarter was negatively impacted by approximately 3 percentage points due to certain retailer customers ordering portion packs more aggressively in the fourth quarter of fiscal year 2014 ahead of our SAP implementation and approximately 1 percentage point from foreign currency exchange rates. Excluding the impact of foreign currency exchange rates and SAP pre-ordering, total net sales grew approximately 4% and total Keurig beverage system sales grew approximately 5%.
Net sales for the U.S. segment increased 2% while sales of the Canada segment declined 12% on a reported basis and 6% excluding the impact of foreign currency exchange rates.
Total portion pack net sales increased 9% in the quarter while brewers and accessories net sales declined 18%. Total net sales growth was negatively impacted by a 17% decrease in other product net sales in the quarter.
Portion Packs
- The 9% increase in portion pack net sales compared to the prior year period was due to a 13% increase in equivalent servings2 volume and a 2 percentage point increase due to net price realization partially offset by a 6 percentage point decrease due to product mix and a roughly 1 percentage point negative impact from foreign currency exchange rates.
Brewers and Accessories
- For the quarter, 4.5 million Keurig® system brewers were sold including 4.3 million sold by Keurig and 0.2 million reported sold by Keurig's licensed brewer partners. This brewer shipment number does not account for consumer returns.
- The 18% decline in Keurig's brewer and accessory net sales compared to the prior year period was due to a 12% decline in brewer sales volume, driven largely by weaker sales of MINI Plus brewers. Brewer net price realization declined by 8 percentage points and foreign currency exchange rates negatively impacted net sales by roughly 1 percentage point. This was partially offset by 3 percentage points of positive brewer mix.
- Additionally, accessory net sales declined 15% compared to the prior year period. Full report.
