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