Cambrex Corporation (CBM) has reported a 21.53 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $9.22 million, or $0.28 a share in the quarter, compared with $11.75 million, or $0.36 a share for the same period last year.
Revenue during the quarter grew 6.90 percent to $99.40 million from $92.98 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 37.83 percent. Total expenses were 80.42 percent of quarterly revenues, down from 80.62 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 19.58 percent.
Operating income for the quarter was $19.46 million, compared with $18.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $26.28 million compared with $23.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 100 basis points in the quarter to 26.44 percent from 25.44 percent in the last year period.
"Based on our excellent year to date results, expectations for a strong fourth quarter and the addition of PharmaCore, renamed Cambrex High Point, we are increasing our sales and profit guidance for 2016," commented Steven M. Klosk, president and chief executive officer of Cambrex.
Working capital increases sharply
Cambrex Corporation has recorded an increase in the working capital over the last year. It stood at $210.10 million as at Sep. 30, 2016, up 71.23 percent or $87.40 million from $122.70 million on Sep. 30, 2015. Current ratio was at 3.66 as on Sep. 30, 2016, up from 2 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 95 days for the quarter from 181 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 107 days for the quarter compared with 207 days for the previous year period. At the same time, days payable outstanding went down to 59 days for the quarter from 76 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
