November 1, 2012 / 3:49 PM / 5 years ago

UPDATE 2-Canada beverage maker Cott to pay dividend, profit falls

2 Min Read

* Announces C$0.06 dividend

* Q3 EPS C$0.15 vs C$0.17 year earlier

* Revenue down about 5 percent at $583.8 million

* Shares up nearly 6 percent (Adds detail on volume and margins, analyst expectations, updates market reaction.)

Nov 1 (Reuters) - Canadian private-label beverage maker Cott Corp announced a new quarterly dividend on Thursday, even as its profit and revenue both fell.

Shares rose 6 percent after the company, whose customers include Wal-Mart Stores Inc, said it would pay a dividend of 6 Canadian cents a share on Dec. 20, to shareholders on record as of Dec. 4. It plans to pay regular quarterly dividends going forward.

"We have a track record of strong cash generation for the past three years and this, coupled with our increased confidence in our business model, allow us to allocate some of our cash generation to shareholders in the form of a dividend," Chief Executive Jerry Fowden said in a statement.

Cott operates soft drink, juice and other beverage bottling plants in the United States, Canada, Mexico and the United Kingdom, and has some 4,000 employees around the world.

Total filled beverage case volume fell to 225 million from 250 million as the company exited some lower margin businesses, and gross profit margin rose to 12.5 percent from 11.1 percent.

Net income fell to $14.5 million, or 15 cents per share, from $16.2 million, or 17 cents per share, a year earlier. Quarterly revenue fell about 5 percent to $583.8 million.

Analysts, on average, had expected earnings of 20 cents a share, according to Thomson Reuters I/B/E/S.

The stock was up 5.9 percent at C$8.08 on Thursday afternoon on the Toronto Stock Exchange.

$1 = $1.00 Canadian Reporting by Allison Martell in Toronto; Additional reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Janet Guttsman and Andrew Hay and James Dalgleish

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