Keurig brings in more than US$1 billion in third quarter

Keurig Green Mountain has reported net sales of US$1.2 billion in the quarter ending 27 September, representing a 14 per cent increase on the same time last year. The K-Cup and coffee machine maker attributed the growth to a strong performance in its portion pack sales, reporting a 22 per cent increase in net sales over the year prior. Despite the report, a conference call with CEO Brian Kelly caused stocks to fall on Thursday, CNN Money has reported. Kelly revealed a much lower earnings prediction than what analysts were expecting for the final quarter, causing stocks to tumble more than 7 per cent. Despite this drop, Keurig stock is still up almost 90 per cent this year, making it one of the best performers in the S&P 500, CNN reports. Keurig released a second statement last week announcing that Chief Financial Officer Frances Rathke will step down sometime next year. Rathke, who has been with the company for 11 years, will serve in the new role of Strategic Advisor to the CEO once a new CFO has been appointed. “The departure of a CFO is often viewed as a worrisome sign,” said CNN Money. “It may be more troublesome for Keurig since this is a company that has been accused of improper accounting by some high-profile short sellers, including hedge fund manager David Einhorn.” During Rathke’s tenure, net sales grew from US$117 million in 2003 to US$4.7 billion in 2014. In the statement Keurig thanked Rathke for her leading role in the recent partnership with Coca-Cola. Coke brought a 10 per cent stake in Keurig in February, which it increased to 16 per cent in May.