Keurig Green Mountain Inc made a first-quarter profit forecast which is below the estimations of analysts, as the said company fights against the rising competition from makers of coffee pods and the increasing prices of coffee.
The shares of the company decreased 1.2% on Wednesday during after-market trading.
The company has also tried to make expansions beyond the core business it has which is coffee packets that are single-serve, as it wrestles with its competition from rivals which are smallers, like TreeHouse Foods Inc.
South America’s weather patterns that are unfavorable had forced the Arabica coffee prices to reach their highs for this year.
The forecast of the company for its earnings during 2015’s first quarter is set between 83 to 88 cents for every cent. This is below the estimations of analysts for the average, which is 96 cents.
Reports from the Keurig Green Mountain show profit and revenue that is better-than-expected. This is for the year’s fourth quarter, supported by coffee portion pack sales that are higher and is the biggest business of the said company.
According to the same report from the company, the overall net sales for the portion packs rose 22 percent during the quarter which ended on the 27th day of the year.