US: Cott Corp suffers in FY as broader CSD market struggles
- FY net profits tumble by 64.4% to US$17m
- Net sales in 2013 slide by 7% to $2.09bn
- Operating profits fall by 19.2% to $88.6m
- Volumes decrease by 8.5%
Cott Corp issued its full-year results earlier today
Cott Corp has flagged a declining carbonated soft drink (CSD) market as having helped to hamper both its fourth quarter and full-year numbers.
The North American private label drinks producer said earlier today (12 February) that net profits in the 12 months of last year were down by 64.4% to US$17m. Sales fell less markedly, by 7% to $2.09bn, while operating profits decreased by 19.2%.
In the final quarter of the year, Cott reported a net loss of $11.5m versus net profits of 2.3m in the corresponding period a year earlier. Net sales slipped by 6.9% to $481.6m as operating profits dropped by 11.8% to $14.9m.
The company noted that the Q4 loss was due in part to its recognition of $12.7m of expense associated with the redemption of the 2017 Senior Notes.
The full-year numbers mark a continuation of Cott's troubles in 2013. In August, the firm said that net profits in the half-year were down by 47% on a 7% drop in sales. At the time, CEO Jerry Fowden said he expected Cott's "top and bottom line performance trends to improve compared to the first half".
“The fourth quarter of 2013 and the year as a whole were challenging for Cott,” he said today. “The overall CSD market and the shelf stable juice market declined during the year, which alongside increased national brand promotional activity and deep price discounting adversely affected our volumes."
Cott's share price rose markedly following the release of the results today: At 1142 EST, they were trading 4.15% up at $8.29.
Cott is in the process of considering its options going forward, having appointed Credit Suisse last week to advise.
To read Cott Corp's official statement, click here.
For an in-depth look at the future options open to Cott Corp, click here.
Click here for coverage of Cott's post-results conference call.
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