BOB EVANS FARMS (BOBE) has reported 36.42 percent plunge in profit for the quarter ended Jan. 27, 2017. The company has earned $8.22 million, or $0.41 a share in the quarter, compared with $12.93 million, or $0.62 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15 million, or $0.75 a share compared with $12.93 million or $0.62 a share, a year ago.
Revenue during the quarter grew 4.56 percent to $112.82 million from $107.90 million in the previous year period. Gross margin for the quarter expanded 512 basis points over the previous year period to 56.63 percent. Total expenses were 84.82 percent of quarterly revenues, down from 89.41 percent for the same period last year. This has led to an improvement of 459 basis points in operating margin to 15.18 percent.
Operating income for the quarter was $17.12 million, compared with $11.42 million in the previous year period.
However, the adjusted operating income for the quarter stood at $19.51 million compared to $11.42 million in the prior year period. At the same time, adjusted operating margin improved 670 basis points in the quarter to 17.29 percent from 10.59 percent in the last year period.
President and chief executive officer Saed Mohseni said, "BEF Foods achieved year-over-year market share and pounds sold growth in its key product categories and distribution channels. Retail channel pounds sold increased nearly 8 percent, with retail side-dish and sausage gains of approximately 13 percent and 3 percent, respectively, driving market share gains in core and national markets. Food service sales were likewise strong with 19 percent year-over-year pounds sold growth. We expect completion of our acquisition of Pineland Farms Potato Company by May 1, 2017, and look forward to its contribution to continued sales and profit growth of BEF Foods during fiscal year 2018 and beyond.
For financial year 2017, BOB EVANS FARMS projects revenue to be in the range of $390 million to $410 million. The company forecasts diluted earnings per share to be in the range of $2.22 to $2.32 on adjusted basis.
Operating cash flow drops significantlyBOB EVANS FARMS has generated cash of $24.49 million from operating activities during the nine month period, down 60.96 percent or $38.24 million, when compared with the last year period. The company has spent $23.20 million cash to meet investing activities during the nine month period as against cash inflow of $31.23 million in the last year period
The company has spent $31.64 million cash to carry out financing activities during the nine month period as against cash outgo of $136.22 million in the last year period.
Cash and cash equivalents stood at stood at $2.43 million as at Jan. 27, 2017.
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