Energizer Holdings, Inc. (ENR) has reported 6.49 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $21.60 million, or $0.34 a share in the quarter, compared with $23.10 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $33.70 million, or $0.54 a share compared with $38.50 million or $0.61 a share, a year ago.
Revenue during the quarter grew 8.34 percent to $432.40 million from $399.10 million in the previous year period. Gross margin for the quarter contracted 256 basis points over the previous year period to 43.32 percent. Total expenses were 90.22 percent of quarterly revenues, down from 90.90 percent for the same period last year. This has led to an improvement of 69 basis points in operating margin to 9.78 percent.
Operating income for the quarter was $42.30 million, compared with $36.30 million in the previous year period.
"Fiscal 2016 was a strong year for Energizer," said Alan Hoskins, chief executive officer. "The combination of organic sales growth, a relentless focus on costs and effective working capital management resulted in a solid financial performance in our first full fiscal year as a stand alone company. This allowed us to reinvest in our business, return capital to shareholders through dividends and share repurchase and, on July 1, complete our first acquisition. We believe that we have created a foundation for continued success and we remain focused on delivering value for our shareholders."
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 improves
Energizer Holdings, Inc. has generated cash of $193.90 million from operating activities during the year, up 19.84 percent or $32.10 million, when compared with the last year.
The company has spent $371.20 million cash to meet investing activities during the year as against cash outgo of $38.80 million in the last year. It has incurred net capital expenditure of $27.20 million on net basis during the year, up 1.87 percent or $0.50 million from year ago.
The company has spent $45.40 million cash to carry out financing activities during the year as against cash inflow of $309.20 million in the last year period.
Cash and cash equivalents stood at $287.30 million as on Sep. 30, 2016, down 42.78 percent or $214.80 million from $502.10 million on Sep. 30, 2015.
Debt moves up
Energizer Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,043.10 million as on Sep. 30, 2016, up 5.10 percent or $50.60 million from $992.50 million on Sep. 30, 2015. Total debt was 60.24 percent of total assets as on Sep. 30, 2016, compared with 60.90 percent on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.78 for the quarter from 2.86 for the same period last year.
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