UPDATE - CANADA: Cott upbeat despite doom and gloom
The management at Cott Corporation has said it remains upbeat about the future, despite lowering its expectations for this year.
Yesterday (26 August), the Canada-based soft drinks company said that it now expects full-year 2008 adjusted operating profit to come in between 28% below and 5% above its 2007 adjusted operating profit, which was $36.3m. The company also withdrew the previously communicated adjusted operating profit target for 2009.
In a conference call today, interim CEO David Gibbons said that he was optimistic about facing the challenges ahead. "We do feel that we have the opportunity to achieve the results that we're looking to obtain," Gibbons said.
"We've got a lot of good people here at Cott. We'll always be looking and evaluating where we think we need to add additional bench strength. Certainly, between the talent we have and new talent where we see a need for it, I think we ought to be able to address what issues we see and be able to achieve both the near- and longer-term goals that we have."
Despite what Cott had believed were ideal economic conditions in which its private label soft drinks could prosper, the company saw a sharp shortfall take hold in July and August. Packaging costs are increasing more than previously anticipated, Cott noted, driven by PET resin costs and the impact of the recent rapid strengthening of the US dollar against its Canadian counterpart.
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