Cott reports US$25M second-quarter profit, down from $27M year ago

TORONTO – Cott Corp. earned a second-quarter profit of $25 million in its latest quarter, down from $27 million a year ago, as the beverage maker reported lower sales volume and revenue.

The company (TSX:BCB), which keeps its books in U.S. dollars, said the profit amounted to 26 cents per share, down from 28 cents per share a year ago.

Revenue totalled $626 million, down from $640 million.

The average analyst estimate had been for a profit of 25 cents per share on $612 million in revenue, according to estimates compiled by Thomson Reuters.

Despite the drop in revenue and profits, Cott chief executive Jerry Fowden said the company improved its gross margins, a key priority.

“Lower volume and revenue reflected a combination of this previously communicated shift in prioritizing margin restoration versus volume and revenue growth as well as poor weather in the UK,” Fowden said.

“Overall, I believe we had another solid quarter as we continue to improve the business and margin mix.”

Gross profit as a percentage of revenue was 14.7 per cent for the quarter compared with 12.1 per cent in the first quarter of 2012 and 13.8 per cent in the second quarter of 2011.

Cott is the world’s largest distributor of store-brand beverages, with about 4,000 employees and soft drink, juice, water and other beverage bottling plants in the United States, Canada, the United Kingdom and Mexico.