Church Dwight Company Inc (CHD) has reported 16.37 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $131.50 million, or $0.51 a share in the quarter, compared with $113 million, or $0.43 a share for the same period last year. On an adjusted basis, earnings per share were at $0.52 for the quarter compared with $0.43 in the same period last year. Revenue during the quarter grew 3.32 percent to $877.20 million from $849 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 45.52 percent. Total expenses were 77.64 percent of quarterly revenues, down from 78.86 percent for the same period last year. This has led to an improvement of 121 basis points in operating margin to 22.36 percent.
Operating income for the quarter was $196.10 million, compared with $179.50 million in the previous year period.
However, the adjusted operating income for the quarter stood at $199.60 million compared to $179.50 million in the prior year period. At the same time, adjusted operating margin improved 161 basis points in the quarter to 22.75 percent from 21.14 percent in the last year period.
Matthew Farrell, chief executive officer, commented, "We have delivered strong results as momentum from 2016 has continued into early 2017 including organic net sales growth of 2.3%, adjusted gross margin expansion of 110 basis points and adjusted earnings growth of 20.9%. The International business grew organic sales 11.8% as our investment strategy continues to pay off. We are pleased that 6 out of 10 power brands gained share."
The company forecasts diluted earnings per share to be in the range of $0.21 to $0.23 for the second-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.75 to $1.77. On an adjusted basis, the company expects diluted earnings per share to be $0.37 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be $1.92 on adjusted basis.
Operating cash flow drops significantlyChurch Dwight Company Inc has generated cash of $131.50 million from operating activities during the quarter, down 26.04 percent or $ 46.30 million, when compared with the last year period. The company has spent $159.30 million cash to meet investing activities during the quarter as against cash outgo of $184.10 million in the last year period.
The company has spent $24.40 million cash to carry out financing activities during the quarter as against cash outgo of $136.10 million in the last year period.
Working capital remains negative
Working capital of Church Dwight Company Inc was negative $412.30 million on Mar. 31, 2017 compared with negative $227.30 million on Mar. 31, 2016. Current ratio was at 0.65 as on Mar. 31, 2017, down from 0.78 on Mar. 31, 2016.
Days sales outstanding were almost stable at 30 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 26 days for the quarter compared with 55 days for the previous year period.
Debt moves up
Church Dwight Company Inc has witnessed an increase in total debt over the last one year. It stood at $1,278.60 million as on Mar. 31, 2017, up 11.08 percent or $127.50 million from $1,151.10 million on Mar. 31, 2016. Total debt was 28.49 percent of total assets as on Mar. 31, 2017, compared with 26.82 percent on Mar. 31, 2016. Debt to equity ratio was at 0.66 as on Mar. 31, 2017, up from 0.60 as on Mar. 31, 2016. 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
