Highlights From the Green Mountain Coffee Roasters Earnings Call
Shares of Green Mountain (NASDAQ: GMCR) rose 4.71 percent in extended hours trading after the company announced upbeat earnings. Shares gave up some gains after the conconclusion of the earnings call.
Below are highlights from CEO Brian Kelley and CFO Frances Rathke.
Brian Kelley, CEO
- Private label brands are the joining system because of Green Mountain’s innovation
- Confident that the number of private label brands will increase
- Most brands the company works with can be brought to other countries
- On Mondelez joining Master Blenders to form JDE: Company looks at them as a partner for Europe, already have relationships with some brands
- Benefits differ for hot and cold products
- Time savings is the major benefit for hot beverages
- Fresh, sustainable drinks, and storage savings are benefits for cold beverages
- Company expects high retailer promotion for Keurig 2.0 and a lot of shelf space
- Keurig 2.0 to be more successful than Vue because there is more flexibility for the user and it will be easier to communicate new benefit of size than quality
Frances Rathke, CFO
- 30 percent increase in free cash flow
- $800 million in buybacks and dividends; $1.1 billion is still on the balance sheet
- Will be easier to beat YoY q3 than q4
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