National Beverage Corp saw profits leap in Q1

National Beverage Corp saw profits leap in Q1

National Beverage Corp has posted a marked rise in profits for its first fiscal quarter as sales inched upwards.

The Florida-based soft drinks firm said yesterday (9 September) that net profits for the three months to the end of July came in at US$12.05m, a 23% leap on the same period a year earlier. Sales, meanwhile, were up by only 1.4% at $165m.

In volume terms, sales were estimated by National Beverage Corp to be down by 0.8% in the quarter, thanks mainly to a 2.2% slip in branded CSD volumes resulting from “difficult” year-on-year comparisons.

“We believe overall volumes are likely to improve over the balance of F2011 as the company’s value proposition continues to appeal to consumers - Shasta and Faygo brands are typically priced at a discount to national brands but at a premium to private label - and comparisons become more favourable,” the company said.

“Shasta’s new media campaign in California produced great results but was somewhat hindered by unseasonably cooler weather, while the balance of the country sweltered in ‘stay-inside-air-conditioned’ places and consumed less,” said chairman and CEO, Nick Caporella.

The firm increased its fiscal 2011 and 2012 EPS estimates to $0.83 – from $0.77 - and $0.88 - from $0.81 – respectively.