US: North America drags down Cott Corp Q3
Cott Corporation has posted a loss in what the company has described as a "disappointing" third quarter.
The US soft drinks company said today (25 October) that operating profit for the three months to the end of September turned from US$11.9m a year earlier to a $3.8m loss. Sales were also down, by 2.3% to $464.4m. In volume terms, sales inched up 0.7% to 309.9m 8oz.-equivalent cases.
Net loss in the quarter was $5.8m, compared to a net profit in Q3 2006 of $6.6m.
While Cott's international business posted a 14.1% climb in sales, North American revenues fell by 7.7% due to continued softness in the CSD segment, the impact of price increases, higher promotional activity by national brands and delays in the introduction of new products.
For the year to date, operating profit more than halved to $18.1m from $42.6m in 2006, with sales slipping to $1.36bn from $1.37bn. Net income dropped to $3.7m from $12.1m.
"We are disappointed by our performance in the third quarter," said Brent Willis, Cott's CEO. "As a result, we are focusing our efforts in North America on fewer, more impactful initiatives, including our new water strategy, selected new channel and product opportunities, and pricing actions that should further the North American business unit turnaround and reignite growth."
Cott Corp. has reassured shareholders it will turnaround results despite the challenges that lie ahead, according to reports....
Cott Corporation has entered into a new US$250m senior secured asset-based lending credit facility and repaid all outstanding indebtedness under its previous credit facility and its receivables securi...
Cott Corp. has named an interim CEO, following the departure of Brent Willis, and has initiated a search for a permanent candidate to fill the position....
Cott Corporation is facing the threat of "significant" space re-allocation for its retailer brand soft drinks at US retail behemoth Wal-Mart....
US trade body the American Beverage Association spent just under US$685,000 on lobbying in the US last year, according to a recent filing....
Cott Corp. has appointed the chairman of Toronto-based private equity firm Callisto Capital to its board of directors....
Cott Corporation has seen "an extreme commodity environment" hammer its fourth quarter and full-year results....
Cott Corporation has teamed up with a subsidiary of Crown Holdings to launch an energy drink in the UK and Europe based on the '24' television series....
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