Thursday May 8th, 2014 - 9:50AM
Keurig Green Mountain reported net sales of $1.1 billion for its fiscal second quarter up 10% from the same quarter in 2013. The 10% net sales growth includes the unfavorable impact of foreign currency exchange rates, which reduced net sales by approximately 1%, according to the company.
"Double digit sales and earnings growth on the heels of a strong holiday season demonstrates the continued opportunity to grow our Keurig system in North America in a very competitive environment," said Brian Kelley, Keurig's president and CEO. "During the quarter, we drove strong brewer and portion pack net sales and accelerated our installed base. In addition, disciplined cost controls drove operating profit and margin growth that translated into solid earnings and a significant increase in free cash flow.
The company reported a GAAP operating profit of $260 million, up 23% from year ago and Non-GAAP operating profit of $272 million, up 21% from year ago.
The company’s brewer and accessories net sales grew 10.8% to $137.6 million for the quarter, compared to $126.8 million for the comparable quarter of 2013. Portion pack sales for the quarter rose to $898.2 million, up approximately 13% from the fiscal second quarter of 2013.
"At the end of the quarter, our balance sheet was very strong, with $1.1 billion in cash, even after we returned nearly $800 million of cash to shareholders in the quarter in the form of dividends and share repurchases, including purchases made through an accelerated stock repurchase agreement," said Kelley. "We are very pleased with our performance and continue to be optimistic about the momentum in our business and the opportunities in front of us."