Coca-Cola Bottling Co (COKE) has reported 9.44 percent fall in profit for the quarter ended Oct. 02, 2016. The company has earned $23.14 million in the quarter, compared with $25.55 million for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.89 million, or $2.45 a share compared with $19.04 million or $2.05 a share, a year ago. Revenue during the quarter surged 37.20 percent to $849.03 million from $618.81 million in the previous year period. Gross margin for the quarter contracted 1 basis points over the previous year period to 38.54 percent. Total expenses were 95.31 percent of quarterly revenues, down from 95.53 percent for the same period last year. This has led to an improvement of 21 basis points in operating margin to 4.69 percent.
Operating income for the quarter was $39.80 million, compared with $27.68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $46.76 million compared to $35.74 million in the prior year period. At the same time, adjusted operating margin contracted 27 basis points in the quarter to 5.51 percent from 5.78 percent in the last year period.
Frank Harrison, Chairman and Chief executive Officer, said, “We are pleased with our 2016 financial and operating results as we continue to grow both organically and through acquisition of additional manufacturing and distribution territory. We are in our third year of the planned refranchising of the U.S. Coca-Cola system and are thankful for the unwavering dedication of all our employees whose efforts are instrumental in successfully integrating new territories and driving strong results in our legacy territories.”
Operating cash flow improves significantly
Coca-Cola Bottling Co has generated cash of $128.12 million from operating activities during the nine month period, up 76.77 percent or $55.64 million, when compared with the last year period. The company has spent $306.05 million cash to meet investing activities during the nine month period as against cash outgo of $130.53 million in the last year period.
Cash flow from financing activities was $176.65 million for the nine month period, up 97.50 percent or $87.21 million, when compared with the last year period.
Cash and cash equivalents stood at $52.22 million as on Oct. 02, 2016, up 28.96 percent or $11.73 million from $40.49 million on Sep. 27, 2015.
Working capital turns positive
Working capital of Coca-Cola Bottling Co has turned positive to $145.82 million on Oct. 02, 2016 from negative $60.89 million on Sep. 27, 2015. Current ratio was at 1.34 as on Oct. 02, 2016, up from 0.87 on Sep. 27, 2015.
Days sales outstanding went down to 32 days for the quarter compared with 36 days for the same period last year.
Days inventory outstanding has decreased to 11 days for the quarter compared with 23 days for the previous year period.
Debt increases substantially
Coca-Cola Bottling Co has witnessed an increase in total debt over the last one year. It stood at $870.57 million as on Oct. 02, 2016, up 43.90 percent or $265.59 million from $604.97 million on Sep. 27, 2015. Total debt was 38.62 percent of total assets as on Oct. 02, 2016, compared with 35.36 percent on Sep. 27, 2015. Debt to equity ratio was at 2.46 as on Oct. 02, 2016, up from 1.93 as on Sep. 27, 2015. Interest coverage ratio improved to 4.71 for the quarter from 4.14 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
