Newsline: CoolBrands Reports Difficult Quarter
Shares in CoolBrands International Inc. dropped to a 4 1/2-year low last month after the Canadian company took an $11.8-million quarterly net loss as costs rose while sales of its frozen desserts melted.
Shares in CoolBrands International Inc. dropped to a 4 1/2-year low last month after the Canadian company took an $11.8-million quarterly net loss as costs rose while sales of its frozen desserts melted. CoolBrands said revenue was $95.5 million in its third quarter ended May 31, up 3.7% from $92.1 million in the year-ago period.
The company's stock was as high as $27 in the spring of 2004, but plummeted after it lost the rights to the Weight Watchers brand.
"Negative results were driven by continued declines in our frozen desserts business, underscoring our need to refocus our brand portfolio on more appealing and strongly differentiated brands and products," said David Stein, president, CEO and co-chairman.
"Our new product initiatives this year, which began showing up on store shelves in the third quarter, reflect that strategy. Meanwhile, our other three operating segments, including our Breyer's yogurt business, showed stable revenues and profitability."
Shares in CoolBrands International Inc. dropped to a 4 1/2-year low last month after the Canadian company took an $11.8-million quarterly net loss as costs rose while sales of its frozen desserts melted. CoolBrands said revenue was $95.5 million in its third quarter ended May 31, up 3.7% from $92.1 million in the year-ago period.
The company's stock was as high as $27 in the spring of 2004, but plummeted after it lost the rights to the Weight Watchers brand.
"Negative results were driven by continued declines in our frozen desserts business, underscoring our need to refocus our brand portfolio on more appealing and strongly differentiated brands and products," said David Stein, president, CEO and co-chairman.
"Our new product initiatives this year, which began showing up on store shelves in the third quarter, reflect that strategy. Meanwhile, our other three operating segments, including our Breyer's yogurt business, showed stable revenues and profitability."
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