CANADA/US: Sales, profits, volumes struggle in Q1 for Cott Corp

By | 1 May 2013

  • Q1 net profits total zero, versus US$5.9m a year earlier
  • Net sales in three months to end of March slip by 3.5% to $505.4m
  • Operating profits tumble by 28.1% to $15.1m
  • Volumes also struggle, dipping by 4.9% to $193m cases
Cott Corp released its Q1 numbers earlier today

Cott Corp released its Q1 numbers earlier today

Cott Corp has posted a marked fall in sales and profits in the first quarter of the year, as the global CSD market struggled in the period.

The North American firm said earlier today (1 May) that net profits in the three months to the end of March came in at zero, compared to profits of US$5.9m in the corresponding period a year earlier. Net sales in the period were down by 3.5% to $505.4m, as volumes fell by 4.9% to $193m cases.

Operating profits plunged by 28.1% to $15.1m.

Cott blamed "soft volumes alongside a general market decline in the carbonated soft drink category" for the numbers, but highlighted that its average price per case in North America rose in the quarter.

"We remain firmly focused on being a low-cost, high-service producer while following our 4 Cs of Customer, Cost, Capex and Cash," said company CEO Jerry Fowden. "Meanwhile, we continue to implement our capital deployment strategy, which includes the payment of a quarterly dividend, the renewal of our share repurchase programme and the reduction of debt and interest costs."

The next stage of Cott's share buyback will be spread over the year starting from 21 May. It hopes to recover up to 5% of its outstanding common shares.

Cott's share price opened down markedly this morning, and was trading down 10.1% at 1143 EDT today.

Earlier this week, Cott anounced that it will acquire Calypso Soft Drinks in the UK for an undisclosed amount.

To read the company's official release, click here.

Expert analysis

Cott Corporation (BCB) - Financial and Strategic SWOT Analysis Review

Cott Corporation (Cott) is a non-alcoholic beverage company based in Canada. It is also engaged in the retailing of branded soft drinks. Product portfolio of the company includes carbonated soft drinks, clear and flavored water, juice based products, bottled water, energy drinks and ready to drink teas. Cott sells and markets its products under various brand names such as Cott, Red Rain, Orient Emporium Tea Co., Stars & Stripes, Vess, Vintage, So Clear, Shanstar, Harvest Classic, Chadwick Bay, Golden Crown, Emerge, Red Rooster, Carters, Ben Shaws, and RC. The company principally operates in the US, the UK, Canada and Mexico. Cott is headquartered in Tampa, Florida, the US.

Sectors: Company results, Soft drinks, Water

Companies: Cott

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