Valuation 101: Cott Isn't Even Close To Cheap
Tue, Oct. 18, 12:31 PM
- Beverage stocks are active after the latest data dump from Nielsen on sales trends.
- Wells Fargo notes that most beverage categories showed growth for the period ending October 8, including nearly a 5% gain for energy drink volume and sales.
- Coca-Cola's (KO +0.7%) carbonated soft drink sales were up +1.7%, while PepsiCo's (PEP +0.4%) CSDs fell off 0.8%. CSD sales were up 0.4% for Dr Pepper Snapple (DPS +0.5%).
- Gainers off the Nielsen numbers include Cott (COT +1.9%), Monster Beverage (MNST +2.6%), Primo Water (PRMW +1.9%) and National Beverage Corp. (FIZZ +1.2%).
- Source: Bloomberg
Thu, Oct. 13, 5:35 PM
Thu, Aug. 11, 9:17 AM
- Cott Corporation (NYSE:COT) announced that it closed its previously announced acquisition of coffee roaster S&D Coffee.
- The company says the acquisition broadens the distribution platform of Cott's existing DS Services coffee business in the United States by adding a leading scale platform with in-house roasting, grinding and blending capabilities alongside a national distribution system.
- The deal is expected to be accretive to cash flow from operations and adjusted free cash flow in its first full year and provide a cash-on-cash IRR above its cost of equity.
- The $355M purchase price represents a high 6x post synergy adjusted EBITDA multiple.
- Cott financed the transaction through a combination of cash on hand and borrowings under its asset-based lending facility of approximately $270M.
- Source: Press Release
Thu, Aug. 4, 12:00 PM
Thu, Aug. 4, 11:30 AM
- Cott Corporation (COT +8.3%) announces that it acquired S&D Coffee for $355M.
- S&D is a premium coffee roaster and provider of customized coffee, tea, and extract solutions to the foodservice, convenience, gas, hospitality and office segments in the U.S.
- "The addition of S&D brings our Better for You beverage platform to over 65% of our adjusted EBITDA on a pro forma basis with carbonated soft drinks representing just 12% of adjusted EBITDA," notes CEO Jerry Fowden.
- On a broader level, Cott says the acquisition of S&D is in line with Cott's strategy of focusing on acquiring cash accretive businesses with higher growth while continuing Cott's beverage diversification outside of carbonated soft drinks, shelf stable juices and large format retail.
- Source: Press Release
Thu, Aug. 4, 7:51 AM
Thu, Aug. 4, 7:19 AM
Wed, Aug. 3, 5:30 PM
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Tue, Jun. 21, 4:29 PM
- Cott Corporation (NYSE:COT) announces that it has entered into an agreement to sell 13.12M common shares to a syndicate of underwriters led by CIBC Capital Markets at a price of $15.25 per share.
- Cott has also granted the underwriters an option to purchase up to 1.968M additional common shares on the same terms and conditions.
- Cott will use a portion of the net proceeds of the offering to repay the borrowings under its asset based lending facility. The remainder of the net proceeds will be used by the company to finance potential acquisitions and for general corporate purposes.
- The offering is expected to close on June 29, 2016.
- Source: Press Release
Tue, Jun. 7, 12:00 PM
Tue, Jun. 7, 9:13 AM
Mon, May 23, 9:39 AM
- Athlos Research forecasts food input costs will rise 1.9% over the next six months which will increase the pressure on companies to use pricing to offset the inflation.
- Strong price gains are expected in the fruits/vegetables, softs/sweetners, and oils categories - while proteins, dairy, and grainscosts are expected to fall back.
- The impact on profit varies across the sector. A negative EBIT impact from cost inflation is forecast for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), Cott (NYSE:COT), Dr. Pepper Snapple (NYSE:DPS), Campbell Soup (NYSE:CPB), Pinnacle Foods (NYSE:PF), and Hormel (NYSE:HRL). Foods cost inflation will have a positive impact on EBIT for Post Holdings (NYSE:POST), Dean Foods (NYSE:DF), Hershey (NYSE:HSY), and Fresh Del Monte Products (NYSE:FDP), according to the Athlos estimate.
Fri, May 20, 7:31 AM
- Philadelphia has the soda industry in its sights with a sugary drink tax on the agenda for the city council to vote on in June.
- Mayor Jim Kenney is in favor of the tax and is using the angle that it could be used to help fund prekindergarten programs, libraries, and public parks.
- The proposed tax is on the hefty side ($0.03/oz) and could increase prices by over 50% on some products. An alternative container tax has also been bandied around. although it wouldn't bring in the same amount of tax dollars.
- It's unclear which direction the city council will go with lobbying efforts on both sides picking up.
- Related: KO, PEP, DPS, MNST, COT.
Thu, May 5, 8:04 AM
- Cott (NYSE:COT): Q1 EPS of -$0.02 beats by $0.01.
- Revenue of $698.4M (-1.6% Y/Y) beats by $10.65M.
Wed, May 4, 5:30 PM
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Wed, May 4, 7:19 AM
- Cott (NYSE:COT) declares $0.06/share quarterly dividend, in line with previous.
- Forward yield 1.82%
- Payable June 15; for shareholders of record June 3; ex-div June 1.