For the three-month reporting period ended June 28, Keurig said it had a profit of $155.2 million, or 94 cents a share, up from $116.3 million, or 76 cents a share, a year earlier.
Excluding one-time items, earnings rose 21% to 99 cents a share from 82 cents, ending a three-quarter string of slowing growth. But revenues rose just 6% to $1.02 billion, slightly missing analysts’ estimates of $1.05 billion. Gross profits rose to 43.5% from 42.1%.
The company also warned that results from the present quarter will likely be less than anticipated, forecasting sales growth will be in the high single digits to low double digits. Analysts have forecast growth of 11%.
Keurig 2.0 launch ‘immiment’,says CEO
"Our solid year-over-year brewer shipment growth of 13% and our 15% unit growth in portion packs is indicative of the continued expansion of the Keurig system across the US and Canada," said CEO Brian Kelley in a press release. "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."
Keurig is looking to expand beyond its core business of selling coffee brewers and K-cups as the category becomes increasingly crowded. (Read about an aggressive new player in the single cup market.) In addition to developing a next-generation Keurig brewer to cut back on copycat K-cups, the company is working on an at-home carbonated beverage system in a deal with Coca-Cola Co., which it plans to roll out in 2015.