US: Rising costs hit Cott Corp Q1 profits
- First-quarter net profits drop by 41.7% to US$7m
- Sales soar by 47% to $534m
- Operating profits remain flat at $25m
- Figures impacted by "substantially higher commodity costs"
Cott Corp saw its profits drop in the first quarter
Cott Corp has recorded a drop in first-quarter profits, hurt by a substantial rise in commodity costs.
For the three months to 2 April, net profits declined by 41.7% to US$7m, the soft drinks maker said today (4 May). Operating profits remained flat at $25m, although sales climbed by 47% to reach $534m.
“Our first quarter results included the impact of substantially higher commodity costs without the full benefit of higher 2011 prices, which were only in place for part of the quarter,” said Cott Corp's CEO, Jerry Fowden. “This pricing lag eroded our gross margins, particularly in the US.”
Nonetheless, Fowden said the firm will look to mitigate the increases whilst working to continue integrating Cliffstar Corp, which it purchased last year.
Check back later for further insight into Cott Corp's first-quarter results.
Click here to view the earnings release.
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