Aug. 8 (Bloomberg) -- Green Mountain Coffee Roasters Inc., maker of Keurig single-serve pods and machines, fell in New York after reporting declining coffee brewer sales in its fiscal third quarter.
The shares dropped 3.5 percent to $76.48 at the close. Green Mountain, based in Waterbury, Vermont, has gained 85 percent this year, while the Standard & Poor’s Midcap 400 Index has advanced 21 percent.
Brewer and accessory sales dropped 4.3 percent to $133.1 million in the three months ended June 29, Green Mountain said in a statement yesterday. Sales growth of single-serve packs slowed to 18 percent in the quarter from 21 percent in the prior three months.
Chief Executive Officer Brian Kelley has been trying to lure Americans with higher-end coffee brewers and new varieties of K-Cups as competitors introduce less expensive single-cup pods. Green Mountain, which has seen its sales growth slow this year, announced in July an agreement with Cinnabon to make cinnamon-roll flavored coffee cups for Keurig machines.
Net income rose 59 percent to $116.3 million, or 76 cents a share, from $73.3 million, or 46 cents, a year earlier, Green Mountain said. Excluding certain items, profit was 82 cents a share. Analysts projected 76 cents, the average of 12 estimates compiled by Bloomberg.
“Our total revenue growth of 11 percent was at the low end of our expectations, driven primarily by a sales decline in Canada,” Kelley said in the statement. “Importantly, our U.S. business is very healthy.”
The company forecast adjusted earnings of 69 cents to 74 cents a share in the fourth quarter. It projected an increase in sales of 11 percent to 15 percent, which would give a range of $1.05 billion to $1.09 billion, according to data compiled by Bloomberg. Analysts on average projected 71.5 cents on revenue of $1.02 billion.
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