National Beverage Corp. (NASDAQ:FIZZ) today reported results for the first quarter of Fiscal Year 2014.
For the comparable first quarters FY2014 vs. FY2013:
- Revenues decreased 6% to $172 million
- Net income decreased 16% to $12 million
- Earnings per share decreased 16% to $.26
“Should we have the most credible reason for these results (and we could have), would it make a difference?” asked Nick A. Caporella, Chairman and Chief Executive Officer on a recent management call. “Does it make us feel less contrite relative to the credibility of the justification?” he queried. “There can be no allowable regrets in business or fumbles on the field (deck) of Endeavor – none . . . (no one even knows how to practice them),” quipped Caporella.
“From mega retailers to soft drink giants, the summer of ’13 will symbolically claim its victims! Consequently, the culmination of nervousness of a ‘whiplashed’ consumer to the ‘knee jerk’ reaction of Big Cola . . . all segments of soft drink sales were affected – as retailers and soft drink companies subsequently disclosed. The lowering of prices being Big Cola’s response – further complicated the situation! Cooler weather compounded already weakened consumer spirits ,” indicated Caporella.“The consumer revolted in anger to yo-yo pricing; Big Cola’s pricing tactics didn’t stop the sales and market share declines. Yesteryear’s shopper had higher disposable income and a more comfortable, content state of mind; discount pricing resulted in greater single purchases – NOT this tense summer of ’13!” Caporella continued. “Maybe everyone learned an invaluable lesson – ‘No instant fix for a distraught consumer!’ Good soft drinks are to the human race what sunshine is to a picnic! Thankfully, after the Fourth of July – normalcy returned to most markets and . . . hopefully attitudes,” Caporella stated.