Editor’s note: This article was first published in the Waterbury Record on Feb. 12, 2015.
In what Keurig Green Mountain says is a blip in its financial performance, the company reported that revenue slipped in the first quarter of its fiscal year.
Net sales were $1.4 billion, in line with the same period a year ago, and adjusted earnings of 88 cents per share were just one cent below expectations.
However, net sales were $1.39 billion, down $300,000 from a year ago — and far below the 6 percent gain that analysts expected. Sales and expectations were about $80 million apart.
Overall, the company said, it expects 2015 revenue growth of 5 to 9 percent.
“We believe these factors are transitory,” said Brian Kelley, the company’s president and CEO, about issues with the first-quarter results. “While the impact to the holiday season for our hot platform was disappointing, we remain very enthusiastic about our opportunity to grow and premiumize at-home beverages across both our hot and cold platforms.”
In the first quarter, the company boosted sales 9 percent for its portion packs, which supplies the majority of total revenue.
However, sales of brewing machines and accessories dropped 18 percent from a year ago. The company sold 4.5 million Keurig brewers during the quarter, down 12 percent and dragged down by a recall of MINI Plus brewers.
U.S. sales rose 2 percent, but Canadian sales plunged 12 percent; half of that drop was attributed to the weakening Canadian dollar.
The company’s board of directors declared a quarterly dividend of 28.75 cents per share.
