Refresco Sees Operating Profit Down In Q2 Due To Cott Integration
Soft drink bottler Refresco has posted an operating profit of €6 million in the second quarter of its financial year, compared to €41 million for the same period last year, due to increased costs arising from its recent acquisition of Cott's bottling operations.
The group, whose parent firm is Sunshine Top B.V., also incurred costs due to its takeover by PAI Partners, which was completed in April.
Total group volume at the firm increased to 3.04 billion litres in the period (Q2 2017: 2.05 billion).
This was due to increased volumes arising from the acquisition, while retailer brands volume increased 64.6% for the same reason.
Total contract manufacturing volume increased to 934 million litres, 20.8% up from Q2 2017, the company said.
Revenue for the second quarter stood at €1.04 billion, up from €643 million in the same period last year.
"A significant event in the second quarter was the start of the integration of Cott's bottling business in the UK, following approval by the UK Competition and Markets Authority on March 29," commented Hans Roelofs, chief executive of Refresco.
"Progress to date includes integration of Cott's bottling activities into the Refresco governance structure and set up of new leadership and commercial teams."
Roelofs said that the company has "made good progress" on the procurement of raw materials and packaging, using its "scale, global purchasing expertise and local market knowledge to redefine specifications, better tailor our proposition to the market, and save money.
"We see ample opportunities to grow with customers on the back of our enhanced geographical presence in both continents. Cash flows from operating activities remain strong while one-off acquisition costs and re-financing costs impacted our net results."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.