Investing.com -- Shares in Keurig Green Mountain Inc (NASDAQ:GMCR) plunged more than 10% in after-hours trading after one of the world's leaders in specialty coffee, coffee makers and teas posted worse than expected profits in the second quarter.
Keurig, a Vermont-based company, reported profits of $155.5 million or 97 cents for the quarter that ended on March 28, versus profits of $162.1 million or 1.03 per share for the same period in 2014. Net sales for Keurig increased by 2% on a year-over-year basis from 1.103 billion to 1.127 billion in the second quarter.
"We are pleased to report that our earnings per share in the second quarter were in line with our guidance. Our top-line growth, however, was below our expectations primarily due to the slower than expected transition to the Keurig 2.0 system. We are taking actions to reduce brewer inventories, enhance our 2.0 brewer packaging to better communicate our extensive brand variety and step up innovation on our owned brands," Keurig Green Mountain CEO Brian Kelley said in a statement.
Keurig also updated its forward guidance, as it forecast modest "flat to low single-digit," growth for the remainder of the 2015 fiscal year.
"Although we are lowering our guidance to reflect the impact of near-term challenges related to this complex product transition, we remain highly confident in our long term strategy for the Keurig hot system and continue to believe there is a significant runway of opportunity. Combined with the upcoming launch of our Keurig KOLD system, we expect the Keurig brand to further expand and globalize while continuing to transform the premium home beverage experience for consumers," Kelley added.
Shares in Keurig plummeted 11.63 or 10.76% to 96.45 in after-hours trading.