News

US/CANADA: Q1 bodes well for Cott Corporation

Most popular

'Healthy alcohol - the trend to watch in 2019?

The beer category in 2019 - just-drinks predicts

The beer category in 2018 - Review

Is craft spirits approaching a reset moment?

MORE

Cott Corporation has swung from loss to profit in the first quarter of this year.

The company, which is the world's largest private label soft drinks producer, said today (1 May) that net profits for the three months to the end of March came in at US$20.8m, compared to a loss of $20.9m in the corresponding period a year ago. The turnaround came despite a slight dip in sales, to $367m from $389.7m.

Operating profits followed net profits, coming in $22.3m in the black versus a loss of $12.2m 12 months ago.

In North America, beverage case volumes were up by 4.6%, primarily driven by the trend of consumers shifting to retailer brands, the company said.

In the UK, however, volumes dipped by 9.8%, due in part to increased promotional activity by the national brands early in the quarter and reduced promotional activity by retailers on private label brands.

Revenue from the UK subsequently declined 31.1% to $64m, with the country posting a $2.6m operating loss, against an operating profit of $2.2m in Q1 2008.

"Cott's renewed focus on private label, coupled with consumers seeking better value in high quality retailer brands, drove an improved sales trend in North America," said Cott's CEO, Jerry Fowden. "This trend, in addition to our focus on reducing costs, helped Cott return to profitability.

"We still have a long way to go, but after several quarters of losses, we are encouraged by our improved volume, cash flow and bottom-line performance."

Going forward, Fowden added that the company will focus on further strengthening customer relationships, continuing the push for lower operating costs, controlling capital expenditures, and managing working capital.

"While we are pleased with our first quarter results, we are keenly aware that the competitive landscape is changing, promotional activity on carbonated soft drinks is expected to increase, and that additional challenges lie ahead," he said.


Sectors: Soft drinks, Water

Companies: Cott Corporation

Related Content

Cott Corp buys S&D Coffee for US$355m as H1 returns to black - results

Cott Corp buys S&D Coffee for US$355m as H1 returns to black - results...

Cott Corp Q4 hit by one-off, but FY rides wave of DS Services water purchase

Cott Corp Q4 hit by one-off, but FY rides wave of DS Services water purchase...

How Cott Corp Weathered Private-Label's Storm - Comment

How Cott Corp Weathered Private-Label's Storm - Comment...

Refresco prepares for Cott Beverages purchase with H1 2017 sales jump - results

Refresco prepares for Cott Beverages purchase with H1 2017 sales jump - results...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?