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Irvine's Diedrich Coffee sees 57 percent uptick in net revenue
The company says the jump was due to a spike in Keurig K-Cup sales.
By Kristen SchottPublished: September 22, 2009 10:03 AM
Irvine-based Diedrich Coffee's net revenue hit $20.1 million in the fourth quarter – it's a 57 percent spike compared to the same time last year.
The jump was mainly due to a 75 percent increase in Keurig K-Cup sales, according to the company, which is among four roasters under license to produce the products for Keurig Inc.'s single-cup brewing system.
Net income was $3 million, compared to a net loss of $10.2 million at the same time last year, reports the company. At the end of the company's fourth fiscal quarter of this year, Diedrich held $4.2 million in cash and restricted cash.
It's good news for Diedrich, which has been working to transform from a retail coffee company to a wholesaler roaster and seller of gourmet coffees. Among its efforts: The company sold off its Gloria Jean's Coffees domestic franchise operations to Praise International North America for $3.1 million in June. Diedrich also initiated expansion and upgrades to its K-Cup production lines. The revamp is expected to be completed sometime this fall, and it could increase output capacity by more than 40 percent.
"Our long-term plan to exit the retail coffee business and concentrate on roasting and K-Cup wholesale distribution ignited a company transformation that culminated in the fourth quarter of 2009," says J. Russell Phillips, president and CEO of Diedrich Coffee.
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The jump was mainly due to a 75 percent increase in Keurig K-Cup sales, according to the company, which is among four roasters under license to produce the products for Keurig Inc.'s single-cup brewing system. Net income was $3 million, compared to a net loss of $10.2 million at the same time last year, reports the company. At the end of the company's fourth fiscal quarter of this year, Diedrich held $4.2 million in cash and restricted cash. It's good news for Diedrich, which has been working to transform from a retail coffee company to a wholesaler roaster and seller of gourmet coffees. Among its efforts: The company sold off its Gloria Jean's Coffees domestic franchise operations to Praise International North America for $3.1 million in June. Diedrich also initiated expansion and upgrades to its K-Cup production lines. The revamp is expected to be completed sometime this fall, and it could increase output capacity by more than 40 percent. "Our long-term plan to exit the retail coffee business and concentrate on roasting and K-Cup wholesale distribution ignited a company transformation that culminated in the fourth quarter of 2009," says J. Russell Phillips, president and CEO of Diedrich Coffee. NEXT PAGE >> Related headlines Irvine's Local.com ranks 10th in the U.S. Irvine's Spectrum Pharmaceuticals raises $50 million 'OC METRO Minute,' Sept. 23: Fisker Automotive will receive $528 million loan from U.S. DOE |
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