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Green Mountain Coffee Roasters, Inc.

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Green Mountain Coffee Roasters, Inc. April 30, 2013 Hada Jang Shicheng Tang Yijin (Iris) Zhang Agenda Introduction Company Overview Industry Overview Stock ... – PowerPoint PPT presentation

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Title: Green Mountain Coffee Roasters, Inc.


1
Green Mountain Coffee Roasters, Inc.
April 30, 2013
Hada Jang Shicheng Tang Yijin (Iris) Zhang
2
Agenda
  • Introduction
  • Company Overview
  • Industry Overview
  • Stock Performance
  • Financial Analysis
  • Valuation
  • Recommendation

3
Company Profile
  • Headquartered in Waterbury, Vermont
  • One of the leading companies in the specialty
    coffee and coffee maker businesses.
  • Employed about 5,800 people as of Sep 29, 2012
  • Top four best-selling coffeemakers by dollar
    volume in the United States

Source GMRC Inc. 2012 Annual Report
4
Company History
2011 GMCR sold the "Filterfresh" US coffee
service portion of Van Houtte's business to
Aramark
2006 GMCR acquired KEURIG, Incorporated, a
manufacturer of single-cup brewing systems.
1981 Green Mountain Coffee Roaster was
established as a small café in Vermont
1981
1993
2006
2010
2011
2010 Green Mountain Coffee acquired Diedrich
Coffee for 305.3 million and bought coffee
services company Van Houtte for 907.8M
1993 GMCR started publicly trading on the NASDAQ
national market
Source GMRC Inc. 2012 Annual Report
5
Product Segments
  • The Company manages its operations through three
    operating segments, the Specialty Coffee business
    unit (SCBU), the KEURIG business unit (KBU)
    and the Canadian business unit (CBU).
  • SCBU sources, produces and sells coffee, hot
    cocoa, teas and other beverages, in a variety of
    packaging formats, to consumers in the United
    States.
  • KBU targets its premium patented single cup
    brewing systems for use both at-home (AH) and
    away-from-home (AFH), in the United States.
  • CBU sources, produces and sells coffees and teas
    and other beverages to Canadian consumers.

Source GMRC Inc. 2012 Annual Report
6
Sales Breakdown
  • Net sales for fiscal 2012 increased 46 to
    3,859.2 million, up from 2,650.9 million
    reported in fiscal 2011. The primary drivers of
    the increase in the Companys net sales were a
    59, or 1,004.9 million, increase in single
    serve pack net sales, and a 45, or 235.1
    million, increase in KEURIG Single Cup Brewer and
    accessories sales.

Source GMRC Inc. 2012 Annual Report
7
Historical Financials
Source Bloomberg
Source Bloomberg
Source Bloomberg
Source Bloomberg
8
Competitive Strength SWOT Analysis
Strengths Weaknesses
Leading market position built on strong product portfolio KEURIG unit contributes to strong revenue growth Corporate image built on sustainability initiatives Customer loyalty Reliance on a single manufacturer in China for single cup brewers Dependence on certain retailer for a substantial portion of revenues
Opportunities Threats
Strategic agreements to bolster revenues Entry into functional drinks market in the US Competition in specialty coffee is intense Increased demand for high-quality Arabica coffee beans coupled with possible supply shortages
Source Marketline
9
Porters Five Forces
10
Macroeconomic Indicators
11
Stock Performance
  • Equity Snapshot
  • Price 56.47 (April 29, 2013)
  • Beta 0.31 (0.94 on 5yr avg.)
  • Trailing P/E 24.39
  • Forward P/E 17.54
  • PEG Ratio (5 yr. expected)
  • 1.04
  • P/B Ratio 3.63
  • No divined

Source Finance.yahoo.com
12
Stock Performance
13
Key Financial Ratios
Source Capital IQ
14
Valuation Trading Comparables
15
Valuation Trading Comparables (Contd)
16
Valuation WACC Analysis
17
Valuation Revenue Projection
FY 2009 acquired the wholesale business and
certain assets of Tullys Coffee Corporation FY
2010 acquired Timothys Coffee of the World Inc.
(Nov 13, 2009) Diedrich Coffee, Inc. (May 11,
2010) FY 2011 acquired LJVH Holdings, Inc. and
Subsidiaries (Van Houtte) on December 17, 2010
18
Valuation DCF
19
Risks Drivers
20
Recommendation
Watch List
21
(No Transcript)
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