US: Q3 sees gloom continue for Cott Corp in YTD
- YTD net profits slip by 8.1% to US$45.5m
- Sales in nine months to end of September come in flat, dipping by 2.9% to $7.73bn
- Operating profits also slip in nine-month period, by 3.7% to $92.8m
- Volumes in North America fall by 11.2% in Q3
Cott Corp posted its Q3 and YTD results earlier today
Cott Corp has seen its figures stay red as North American volumes continued to struggle in Q3.
Net profits slipped by 8.1% to US$45.5m in the nine months to the end of September, the soft drinks maker said today (1 November). Net sales remained comparatively flat, declining by 2.9% to $7.73bn over the same period while operating profits also fell, by 3.7% to $92.8m.
The core North America market was again to blame for Cott Corp's latest disappointment as volumes decreased by 11.2% in Q3. Overall, volumes dropped by 4.3% in the year so far, with RC Cola International (RCI), which accounts for about a quarter of total volumes, increasing by about 7% over the same period. Cott said the RCI increase was driven primarily to increased volume from a new customer in South America.
Cott CEO Jerry Fowden highlighted the positives, with the third quarter seeing an increase in adjusted EBITDA and a higher gross margin of 140 basis points.
“I’m pleased with our gross margin restoration strategy’s progress and our consistent cash generation, which coupled with our view of the future, allows me to take pleasure in announcing a dividend to be paid later in 2012,” Fowden said.
In third-quarter results, net profits decreased by 5.5% to $14.5m while net sales dropped by 4.5% to $583.8m. Operating profits remained flat over the same period, dipping 1.4% to $28.6m.
Cott said the Q3 decline was due to a slowdown in the US CSD market and the withdrawal from low gross margin businesses in the US and UK such as 100% shelf-stable juice.
Cott Corp's share price opened down this morning, before rallying to around yesterday's closing price, at $7.60 at 0952 CET.
To read the company's official statement, click here.
- Interview - Pernod Ricard's luxury director
- What's coming up in wine in 2017? - Comment
- Chile's winemakers caught out by Brexit "disease"
- The just-drinks Analyst - 2017 forecasts
- The Cognac Category - Everything you need to know
- Diageo Australia names new commercial head
- Edrington readies Americas, GTR exec switches
- High-end Cognac making recovery in China - Pernod
- "Beer and weed are complements" - analyst
- Suntory sends staff to fat camp - report
- The Next Seven Big Beverage Markets
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Darker Than Before: Global Prospects for Brown Spirits
- Global gin insights - market forecasts, product innovation and consumer trends