TORONTO, ON and TAMPA, FL--(Marketwired - Jul 30, 2015) - Cott Corporation today announced its results for the second quarter ended July 4, 2015.
SECOND QUARTER 2015 HIGHLIGHTS
- Revenue of $780 million was higher by 42% compared to $549 million as a result of the acquisition of DS Services, offset in part by the impact of foreign exchange and a product mix shift towards contract manufacturing and across other private label categories in our traditional business.
- Gross profit was $241 million compared to $79 million, which resulted in gross profit as a percentage of revenue of 30.9% compared to 14.4%.
- Adjusted EBITDA increased 93% to $108 million compared to $56 million. Reported EBITDA was $103 million compared to $32 million.
- With continued focus on Cott's strategic priorities designed to build long-term shareowner value:
- DS Services revenue increased 2.2% (3.1% on an adjusted basis). Synergy capture and integration of DS Services continued to make good progress with $2 million of synergies realized during the second quarter for a total of over $3 million of synergies realized to date.
- Two agreements have been signed for the acquisition of home and office delivery ("HOD") water businesses which together generate approximately $9 million in annual revenues. The acquisitions, which are subject to customary closing conditions, are expected to close in the third quarter of 2015.
- The North America business unit continued to expand its contract manufacturing business, which grew by approximately 7 million serving equivalent cases. For the North America business unit, gross margin increased 165 basis points to 14.5%.
- Convertible and non-convertible preferred shares of $149 million were fully redeemed on June 11, 2015 with proceeds from our oversubscribed equity offering and cash on hand.
"I am pleased with the continued volume stability within our traditional business and the increased gross margins, EBITDA, and cash flow for the entire business," commented Jerry Fowden, Cott's Chief Executive Officer. "I believe the redemption of the preferred shares within the quarter alongside the greater flexibility it provides to pursue multiple value creating DS HOD water tuck in-acquisitions positions us well as we look forward," continued Mr. Fowden. View the full report here.