Cott Corp. income tumbles as charges add up
July 27, 2006
by FoodBusinessNews.net Staff
TORONTO — For the second quarter ended July 1, Cott Corp. net income fell 70% after the impact of charges related to the company’s continued realignment and its change in chief executive officer. Total profit for the quarter totaled $7.6 million, which compared with income of $25 million in the same period last year.
Net sales for the period totaled $502 million, up 2% from $492.7 in the second quarter of 2005.
Sales in the company’s North America division fell 8%, primarily due to structural changes in a customer agreement. Further volume softness in the carbonated soft drink category also contributed to the dip in sales.
In the company’s European segment, sales rose 60% due to strength in core businesses as well as contributions from the Macaw acquisition.
Revenue for the International segment grew 21% behind continued growth in Royal Crown International and Mexico.
To further streamline its business, the company has made changes to its senior management structure. Under the new structure, two business units, North America and International, are being created to focus on customer management, channel development, sales, and marketing. Supporting the business units are four centralized functions: people, supply / manufacturing, finance and legal/corporate development.
Leading the North American business unit as president will be John Dennehy, currently senior vice-president of sales and marketing for North America.
In the International business unit, Cott has hired Wynn Willard as president. Mr. Willard has extensive senior leadership experience with major international consumer packaged goods companies. He was c.e.o. of Nabisco Ltd. and most recently, c.e.o. of New World Pasta Co.
The company believes that the new centralized structure, under the guidance of these two leaders, will drive standardization and performance in all functions.