Green Mountain Coffee Roasters Inc.
) has teamed up with Radio Lifeline, a non-profit organization in
the U.S. to help farmers fight the effects of climate change and
increase crop yields.
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The joint venture has partnered with re:char, a leading developer
of small-scale biochar technologies, based in Kenya. Their
flagship Black Earth Project is a two-year research project which
aims to evaluate the effectiveness of biochar when used as a soil
amendment by smallholder coffee and pyrethrum farmers in Rwanda.
The project will produce biochar by utilizing agricultural crop
residues like dried corn stalks, grasses, rice hulls and coffee
pulp as well as cow manure and wood chips.
The biochar produced in the test will be applied on test plots
within Rwanda's coffee and pyrethrum farming sectors to measure
the benefits. The project is scheduled to begin on Mar 3 in
Butare, Rwanda. The progress of the project will be updated
regularly through its blog and on its website,
The project will prove beneficial to the company as it will
insulate the farmers from the rapid climate change and also
increase crop yield, thus boosting earnings in fiscal 2013.
First Quarter Earnings Results
On February 8, 2013, Green Mountain Coffee delivered robust first
quarter 2013 adjusted earnings (excluding amortization of
identifiable intangibles and SEC-inquiry related expenses) of 76
cents per share that surpassed the year-ago quarter earnings of
60 cents by 27%. It also beat the Zacks Consensus Estimate of 65
cents by 17% on the back of solid top-line growth and lower
The company has refined its adjusted earnings per share outlook
and capital investment for fiscal 2013, but reiterated its net
sales growth and free cash flow estimates. Green Mountain expects
its adjusted earnings in the range of $2.72 to $2.82 per share,
up from the prior guidance range of $2.64 to $2.74 per share.
Green Mountain also provided its outlook for the second quarter
of 2013. For the second quarter, the company expects adjusted
earnings per share in the range of 70 cents to 75 cents and sales
growth in the range of 14% to 18%. The guidance reflects the
company's continuous efforts to increase brand investments and
The Zacks Consensus Estimates for the second quarter and fiscal
2013 are pegged at 72 cents and $2.80 per share, respectively.
Green Mountain currently carries a Zacks Rank #2 (Buy). Equally
well rated investments that offer exposure to the attractive food
Core-Mark Holding Company Inc.
Natural Grocers by Vitamin Cottage Inc
Vitamin Shoppe Inc
), all of which carry a Zacks Rank #2 (Buy).