July 31, 2008, Toronto – Cott Corp. has reported a second-quarter loss
of US$1.8 million, down from year-ago earnings of $4.7 million, as
revenue for the world's largest maker of store-brand soft drinks
declined 6.4 per cent to $466.5 million.
July 31, 2008, Toronto – Cott Corp. has reported a second-quarter loss of US$1.8 million, down from year-ago earnings of $4.7 million, as revenue for the world's largest maker of store-brand soft drinks declined 6.4 per cent to $466.5 million.
Cott, reporting in U.S. dollars, said Thursday that the revenue decline, from $498.5 million a year ago, was driven by an 11.1 per cent volume drop in North America, partly offset by a 5.3 per cent rise in selling prices.
Cott's total volume was down 9.1 per cent to 215.3 million eight-ounce equivalent cases, "primarily due to continued decline in demand for carbonated soft drink products."
Operating profit for the quarter was $5.3 million, off from $6.2 million a year ago. The latest quarter included $7.1 million of restructuring charges and asset writedowns, compared with $9.1 million in the second quarter of last year.
During the latest quarter, Cott announced a plan to refocus its North American operations on its core store-label business.
"Consumers are feeling the impact of higher prices on food and fuel; these developments traditionally favour private-label products like Cott's," commented David Gibbons, Cott's interim CEO.
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