July 31, 2008 / 9:59 PM / 10 years ago

UPDATE 1-Peet's Coffee & Tea Q2 profit beats Street; shares up

(Recasts; adds details, share movement)

July 31 (Reuters) - Peet’s Coffee & Tea Inc PEET.O posted a 67 percent rise in quarterly profit, beating market estimates, driven by growth in its grocery and other wholesale businesses and reaffirmed its 2008 earnings outlook, sending its shares up 8 percent.

The premium coffee seller earned $3.0 million, or 21 cents per share, for the second quarter ended June 29, compared with $1.8 million, or 13 cents per share, a year earlier.

Net revenue for the company, which competes with Starbucks Corp (SBUX.O) and Green Mountain Coffee Roasters Inc GMCR.O, rose 17 percent to $70.1 million.

Analysts on average had expected a profit of 15 cents per share, before exceptional items, on revenue of $70.6 million, for the quarter, according to Reuters Estimates.

Specialty net revenue rose 24 percent to $23.7 million. Within the specialty business, grocery sales grew 27 percent, and foodservice and office sales were up 42 percent. Retail net revenue increased 13 percent to $46.3 million in the quarter.

The Emeryville, California-based company opened four new retail locations and added 300 additional grocery accounts during the quarter.

For the full year, Peet’s confirmed its earnings outlook of 77 cents to 82 cents per share. Analysts were expecting a profit of 78 cents per share, before items.

Peet’s, which is now available in 7,200 grocery stores, projects it will be selling coffee in 8,000 grocery stores by the end of this year.

Shares of the company rose to $21.00 in trading after the bell. They closed at $19.49 Thursday on Nasdaq. (Reporting by Dilipp S Nag in Bangalore; Editing by Pratish Narayanan)

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