Cott Swings To Q1 Loss - Update

(RTTNews) - Soft drinks maker Cott Corp. (COT, BCB.TO), Wednesday posted a loss for the first quarter, hurt by lower revenues and weak margins, with both falling short of Wall Street's estimates.

Cott reported a first-quarter loss of $3.9 million or $0.04 per share, compared to breakeven results last year. Adjusted loss for the quarter was $2.5 million or $0.03 per share. On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.02 for the quarter. Analysts' estimates typically exclude special items.

Cott, one of the world's largest private-label beverage producers, said its revenues for the quarter decreased to $475.1 million from $505.4 million a year ago. Analysts had a consensus revenue estimate of $490.48 million for the quarter.

Cott, has corporate offices in both Mississauga, Ontario and Tampa, Florida, said the revenue decline was due primarily to lower North American volumes. Total volume declined 5 percent in actual cases and 8 percent in 8oz equivalent cases.

CEO Jerry Fowden said, "The carbonated soft drink market continued to decline during the quarter, which alongside deeply discounted national brand promotional activity, adversely affected volumes and margins."

Cott produces beverages on behalf of retailers, brand owners, and distributors worldwide. It offers products under various retailer brands, which include Cott and Red Rain brands in the US, Canada, and the UK.

Gross margins decreased to 10.6 percent from 11.2 percent a year ago, due to the competition and lower North America volume alongside additional freight and operating costs caused by harsh winter in North America.

Cott declared a dividend of $0.06 per share, payable on June 18 to shareholders of record on June 6. Cott also renewed its share buyback program, which allows the management to buy back up to 5 percent of Cott's outstanding shares.

COT is currently trading at $7.44, down $0.64 or 7.92%, on the NYSE.