US: Cott Corp eyes brighter future despite H1 profits, sales fall
- H1 net profits fall 47% to US$16.5m
- Net sales drop 7% to $1.07bn
- Operating profits fall 26% to $47.7m
- Volumes decline 8%
Cott Corp is struggling in the CSD category
Cott Corp has said it expects a better end to the year after blaming bad weather and a struggling CSD market in North America for a drop in first-half sales and profits.
Net profits fell by 47% to US$16.5m in the six months to the end of June, the soft drinks maker said yesterday (1 August). Net sales dropped by 7% to $1.07bn over the same period while operating profits decreased by 26% to $47.7m.
Total volumes fell by 8% in the first half.
North America, which accounts for about four-fifths of Cott's sales, posted a sales drop of 8%, while volumes were down by 9% compared to last year's H1. Management said the results reflected “the same challenging market and operating trends” that impacted the company's Q1 results, when sales, volumes and profits also struggled.
However, Cott CEO Jerry Fowden added: “As we look to the second half of the year, we currently expect our top and bottom line performance trends to improve compared to the first half.”
Second-quarter numbers were also down on last year, with sales declining 10% to $563.8 and profits falling to $16.5m, a 34% drop. Total volumes for the quarter fell by 10%.
Cott Corp's share price took an upswing yesterday, climbing by 4.4% to $8.77. It was the highest the stock has climbed since late May.
To read the company's official statement, click here.
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