Discounting drives Cott earnings down
August 5, 2010
by Keith Nunes
TORONTO — Earnings for beverage processor Cott Corp. declined during the second quarter of fiscal 2010 due to deep discounting by North American branded beverage manufacturers, according to the company. For the quarter ended July 3, Cott’s net income was $23.7 million, equal to 28c per share on the common stock, down 32% from the same period of 2009 when the company earned $35 million, or 48c per share.
Sales for the quarter were $424.7 million, a slight decline compared with fiscal 2009 when sales were $438.8 million.
“The much publicized deep discounting of national brands in North America during the quarter obviously hindered our performance,” said Jerry Fowden, chief executive officer. “However, despite these challenges we grew total global volume in 8 oz equivalents, including concentrate sales, by 11%, and maintained filled beverage case volume within 1% of last year, while increasing operating income by 15%.”
For the first half of fiscal 2010, Cott’s net income was $36.4 million, or 42c per share, down 32% from the first half of fiscal 2009 when the company earned $53.6 million, or 76c per share.
Sales for the first half of the fiscal year were $787.6 million compared with $805.8 million during the first half of fiscal 2009.