* Q2 EPS 50 cents beats estimates 36 cents
* Inks distribution deal with Wal-Mart
* Raises FY ‘09 outlook
* Shares surge as much as 14 percent (Adds conference call and Wal-Mart partnership details)
BANGALORE, April 29 (Reuters) - Green Mountain Coffee Roasters Inc’s GMCR.O second-quarter profit more than doubled, boosted by sales from its flagship Keurig Single-Cup Brewing System and raised its outlook for the year.
Separately, the company said it entered into a distribution partnership with Wal-Mart Stores Inc (WMT.N), where the world’s largest retailer would distribute Keurig coffee brewers in over 3000 of it stores.
Green Mountain shares as much as 14 percent in trading after the bell following the results.
The Waterbury, Vermont-based company’s profit rose 118 percent to $12.98 million, or 50 cents a share, from $5.96 million or 23 cents a share in the year-ago quarter.
In March this year, Green Mountain completed acquisition of the Tullys Coffee brand and wholesale coffee business for $40.3 million from Tullys Coffee Corp.
In a post-earnings conference call, Chief Executive Lawrence Blanford said acquisition of the Tully’s brand would push topline growth by around 3 to 4 percent in the upcoming quarters.
The company, raised its fiscal 2009 adjusted profit view to $1.47 a share to $1.53 a share, on net sales growth of 58 percent to 61 percent.
The company raised its fiscal 2009 capital expenditure outlook to between $55 million to $60 million from its prior estimate of $50 million to $57 million, on additional K-cup packaging lines in its new Tennessee unit, higher interest expense tax-rate and amortization costs.
Net sales for the quarter rose to $193.4 million from $120.9 million a year-ago. Company executives attributed the strong sales growth on increased in-store advertising initiatives.
The company, with its current 3800-store penetration expects to touch the 15,000 store mark in future, encouraged particularly by the existing 5000-plus store penetration by its acquired Tully brand.
The company also said it expects a profit of 38 cents to 42 cents a share in the third quarter, on sales growth of 61 percent to 66 percent.
Analysts on average were expecting the company to earn 36 cents a share, before special items, on revenue of $178.46 million, according to Reuters Estimates.
Shares of the specialty coffee-maker were trading at $60.01 after the bell. They closed at $52.73 in regular trade on Nasdaq. (Reporting by Sumedha Mukherjee in Bangalore; Editing by Savio D‘Souza, Dinesh Nair)