WATERBURY ,VT -- Keurig Green Mountain Inc. reported a 33% surge in profit for the third quarter, driven by strong demand for its single-cup coffee packs. The Waterbury, VT, roaster and maker of Keurig single-cup brewers said profit rose to $155.2 million, or 94¢ a share, for the three-months ended June 28, from $116.3 million, or 76¢ per share, a year earlier. Quarterly revenues rose 5.7% to $1.02 billion from $967.1 million a year ago.
Sales from portion packs jumped 10% to $826.3 million, while revenue from brewers and accessories dropped 4% to $128.0 million. More than 80% of the company's revenues are generated from portion packs sales. The company sold 1.7 million Keurig system brewers during the quarter.
KGM chief executive Brian Kelley said the company's solid year-over-year brewer shipment growth of 13% and 15% unit growth in portion packs is indicative of the continued expansion of the Keurig system across the U.S. and Canada.
"We also are excited about the imminent launch of our new Keurig 2.0 hot platform, the addition of formerly unlicensed and new brands to the Keurig hot beverage system during the quarter, and our progress on the new Keurig Cold beverage system," Kelley added.
For the current full fiscal year, Keurig Green Mountain raised its per-share earnings estimate to $3.71 to 3.78 from its previous $3.63 to 3.73 and affirmed its sales growth outlook.