Cott posts $1.8 million loss in quarter
July 31, 2008
by FoodBusinessNews.net Staff
TORONTO — Partially the result of lower volumes in North America, Cott Corp. sustained a loss of $1.8 million for the second quarter ended June 28, which compared with income of $4.7 million, equal to 7c per share on the common stock, during the same quarter of the previous year.
Revenue for the second quarter was $466.5 million, down 6% from $498.5 million during the same quarter of the previous year.
"We are receiving positive feedback from our retail customers following our June announcement to refocus on our private label business," said David Gibbons, interim chief executive officer. "After a difficult April, I was encouraged by our results in North America over the balance of the quarter. Consumers are feeling the impact of higher prices on food and fuel; these developments traditionally favor private label products like Cott’s."
North American beverage case volume and revenue declined 11% and 10%, respectively, in the quarter.
For the six months ended June 28, Cott suffered a loss of $23.1 million, which compared with income of $9.5 million, or 13c per share, during the same period of the previous year.
"We are on track to deliver the cost savings described in connection with the refocus plan announced in June," said Juan Figuereo, chief financial officer. "We are executing against our plans to achieve the 50% to 70% increase in operating profit, adjusted for restructuring and other unusual items, discussed in June. We are paying careful attention to the impact that rising commodity costs may have on both consumers and the competitive environment throughout the balance of the year."