Cott Corp.'s first-quarter profit declined as the beverage maker struggled with lower sales and higher costs for some key ingredients. It still managed to beat the market's profit expectations and its shares jumped Wednesday.
The Canadian company makes soft drink, juice and water for private-label customers and others.
Cott's net income fell to $5.9 million, or 6 cents per share, for the quarter that ended March 31. That's down from $6.8 million, or 7 cents per share, in the same quarter last year.
Its revenue slipped to $523.8 million from $534.1 million.
However, Wall Street was looking for only 2 cents per share, according to a poll by FactSet. Revenue did fall short of the $538.9 million consensus.
Cott said that its revenue fell as it got out of the sale of certain low-margin products, such as packs of water. That was partially offset by higher prices for sweeteners, resin, fruit and fruit concentrates.
Company shares rose 25 cents, roughly 4 percent, to $6.80 in morning trading.
Cott also announced Wednesday that it will repurchase up to $35 million of its shares over the next year.