US: Cott Corp sees H1 numbers drop as volumes decline
- H1 net profits drop by 6.9% to US$31m
- Net sales in six months to end of June slip 1.7% to $1.15bn
- Operating profits fall by 4.7% to $64.2m
- Core North America region sees volumes fall 7%
Cott Corp saw volumes drop in its core US market
Cott Corp has posted a dip in H1 sales and profits as volumes fell in all regions.
The US-based soft drinks producer said today (3 Aug) that net profits in the first six months of 2012 fell by 6.9% to US$31m. Operating profits also dropped, by 4.7%, to $64.2m while net sales in the period dipped by 1.7% year-on-year to $1.15bn.
Total volumes fell by 5.7% and in North America, which accounts for about three-quarters of Cott's revenue, volumes dropped by 7%.
Volumes fell slightly in the UK, which was badly affected by heavy rainfall, especially in the second-quarter.
Jerry Fowden, Cott's CEO, said he was pleased with the company's overall financial performance. “Gross margin improved 260 basis points from the first quarter of 2012, reflecting the continued implementation of our 2012 strategy of gross margin restoration,” Fowden said. “Lower volume and revenue reflected a combination of this previously communicated shift in prioritising margin restoration versus volume and revenue growth as well as poor weather in the UK.”
Q2 net profits slipped 5.2% while net sales fell by 2.2% to $626m.
Filled beverage case volume was 240m cases compared to 264m in the second quarter last year, a drop of 9%.
Cott said the fall was due to the weather and its decision to drop some low-margin water pack lines and low-margin businesses in North America.
For the company's official announcement, click here.
To read Cott's Q1 results, click here.
- Will Tequila Learn from Scotch Whisky's Mistakes?
- Comment - Beer - Does 'Craft' Work?
- Solving the diet drinks dilemma in the US
- Comment - How to Target Cognac's Mok Generation?
- Is Marketing Twisting the Meanings of Words?
- Whyte & Mackay takes on Flor de Caña in UK
- Diageo opens Johnnie Walker House in Singapore
- Emperador overhauls Whyte & Mackay labels
- SPI Group US, Canada sales chief departs
- Soaring Prosecco sales good for Champagne
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Africa: The Final Frontier for Beer