Energizer Holdings, Inc. (ENR) has reported a 45.95 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $95.60 million, or $1.52 a share in the quarter, compared with $65.50 million, or $1.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $95.10 million, or $1.51 a share compared with $72.30 million or $1.16 a share, a year ago.
Revenue during the quarter grew 10.42 percent to $559.60 million from $506.80 million in the previous year period. Gross margin for the quarter expanded 319 basis points over the previous year period to 48.53 percent. Total expenses were 73.39 percent of quarterly revenues, down from 78.93 percent for the same period last year. This has led to an improvement of 553 basis points in operating margin to 26.61 percent.
Operating income for the quarter was $148.90 million, compared with $106.80 million in the previous year period.
"We delivered a strong start to the fiscal year as a result of distribution and space gains, incremental holiday activity and the benefit of storm volumes," said Alan Hoskins, Chief Executive Officer. "In addition, our focused efforts behind productivity improvements resulted in an increased gross margin rate and improved SG&A as a percent of net sales as compared to the prior year. We continue to execute on our strategic priorities and have maintained our full year adjusted earnings per share outlook of $2.55 to $2.75 per share, despite increasing headwinds from unfavorable currency impacts."
For financial year 2017, the company projects diluted earnings per share to be in the range of $2.50 to $2.75. For financial year 2017, the company projects diluted earnings per share to be in the range of $2.55 to $2.75 on adjusted basis.
Operating cash flow falls marginally
Energizer Holdings, Inc. has generated cash of $91.80 million from operating activities during the quarter, down 3.87 percent or $ 3.70 million, when compared with the last year period.
The company has spent $0.60 million cash to meet investing activities during the quarter as against cash outgo of $3.30 million in the last year period.
The company has spent $63.20 million cash to carry out financing activities during the quarter as against cash outgo of $34.90 million in the last year period.
Cash and cash equivalents stood at $297.70 million as on Dec. 31, 2016, down 46.50 percent or $258.70 million from $556.40 million on Dec. 31, 2015.
Working capital drops significantly
Energizer Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $416.50 million as at Dec. 31, 2016, down 34.85 percent or $222.80 million from $639.30 million on Dec. 31, 2015. Current ratio was at 1.91 as on Dec. 31, 2016, down from 2.43 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 57 days for the last year period. Days sales outstanding were almost stable at 31 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 37 days for the quarter compared with 81 days for the previous year period. At the same time, days payable outstanding went up to 56 days for the quarter from 54 for the same period last year.
Debt moves up marginally
Energizer Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,014 million as on Dec. 31, 2016, up 1.65 percent or $16.50 million from $997.50 million on Dec. 31, 2015. Total debt was 60.26 percent of total assets as on Dec. 31, 2016, compared with 61.67 percent on Dec. 31, 2015. Interest coverage ratio improved to 11.20 for the quarter from 8.28 for the same period last year.
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