WATERBURY, VT -- Green Mountain Coffee Roasters' third-quarter net income jumped 59%, benefiting from lower coffee costs. Total revenue was $967.1 million compared with $869.2 million last year, up 11% on K-Cup volume growth. Revenue for the period, which was partially offset by lower brewer sales and royalties, was at the low end of Green Mountain's expectations, primarily as a result of a sales decline in Canada.
Green Mountain's net income climbed to $116.3 million, or 76¢ a share, for the period, ended June 29, from $73.3 million, or 46¢ a share, in last year's third quarter.
K-Cup volume was up 21% in the third quarter, but product pricing was down 3%. Revenues from the sale of Keurig brewers fell 4%. About 91% of third-quarter net sales were sales of Keurig single-serve packs and Keurig-related accessories, with the remainder of net sales consisting mainly of bagged coffee, fractional packs and the Canadian OCS business.
Revenues of non-Keurig products and royalties declined 11% year-over-year, which the Waterbury, VT, roaster attributed to the continuing shift from traditional coffee package formats to single-serve packs. The expiration of some K-Cup patents last fall opened the doors for private labels to introduce their own versions, with no obligation to pay royalties to the company.
By region, sales in the U.S. totaled $822.6 million in the third quarter, representing 85% of all sales for the period. Domestic revenue grew 14%, driven by a 21% unit growth in single-serve packs.
Revenue from Green Mountain's Canadian business declined 3%, primarily as a result of a 21% decrease in Keurig brewer revenue.
For fiscal 2013, the company expects net income of $3.19 to $3.24 a share on revenue growth of 13% to 14% to $116.3 million, or about 76¢ per share.