Cal-Maine Foods, Inc. (CALM) has reported a 93.55 percent plunge in profit for the quarter ended Feb. 25, 2017. The company has earned $4.14 million, or $0.09 a share in the quarter, compared with $64.16 million, or $1.33 a share for the same period last year.
Revenue during the quarter plunged 31.84 percent to $306.54 million from $449.76 million in the previous year period. Gross margin for the quarter contracted 1673 basis points over the previous year period to 12.78 percent. Operating margin for the quarter stood at negative 1.49 percent as compared to a positive 19.07 percent for the previous year period.
Operating loss for the quarter was $4.57 million, compared with an operating income of $85.77 million in the previous year period.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., stated, "Our results for the third quarter of fiscal 2017 reflect the volatile market conditions the egg industry has experienced throughout this fiscal year. Our results were affected by lower market prices and weaker demand trends compared with the third quarter last year. Market prices moved significantly higher after Thanksgiving, but dropped back down after Christmas, and our average customer selling prices for the third quarter of fiscal 2017 were down 27.9 percent from the same period a year ago."
Working capital drops significantly
Cal-Maine Foods, Inc. has witnessed a decline in the working capital over the last year. It stood at $392.22 million as at Feb. 25, 2017, down 25.52 percent or $134.42 million from $526.64 million on Feb. 27, 2016. Current ratio was at 5.24 as on Feb. 25, 2017, up from 5.13 on Feb. 27, 2016.
Days sales outstanding went up to 43 days for the quarter compared with 27 days for the same period last year.
Debt comes down
Cal-Maine Foods, Inc. has recorded a decline in total debt over the last one year. It stood at $22.75 million as on Feb. 25, 2017, down 16.48 percent or $4.49 million from $27.24 million on Feb. 27, 2016. Total debt was 2.10 percent of total assets as on Feb. 25, 2017, compared with 2.42 percent on Feb. 27, 2016. Debt to equity ratio was almost stable at 0.03 as on Feb. 25, 2017, when compared with the last year.
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