Greif, Inc. (GEF) has reported a 14.65 percent rise in profit for the quarter ended Apr. 30, 2017. The company has earned $36 million in the quarter, compared with $31.40 million for the same period last year. On an adjusted basis, net profit for the quarter was $39.30 million, when compared with $27.80 million in the last year period.
Revenue during the quarter grew 5.69 percent to $887.40 million from $839.60 million in the previous year period. Gross margin for the quarter contracted 19 basis points over the previous year period to 20.50 percent. Total expenses were 90.94 percent of quarterly revenues, up from 90.14 percent for the same period last year. That has resulted in a contraction of 80 basis points in operating margin to 9.06 percent.
Operating income for the quarter was $80.40 million, compared with $82.80 million in the previous year period.
"We generated strong financial results this quarter through improved customer service and disciplined commercial and operation execution," said Greif's president and chief executive officer, Pete Watson. "Greif's operating profit before special items and our Class A earnings per share before special items both significantly improved compared to the prior year quarter. Greif's improved financial and operational stability underpins our strategy to generate greater value for our customers and shareholders."
For financial year 2017, Greif, Inc. projects diluted earnings per share to be in the range of $2.84 to $3.02.
Operating cash flow drops significantly
Greif, Inc. has generated cash of $15.50 million from operating activities during the first half, down 73.14 percent or $42.20 million, when compared with the last year period.
The company has spent $36.60 million cash to meet investing activities during the first half as against cash inflow of $25.90 million in the last year period It has incurred net capital expenditure of $37 million on net basis during the first six months, up 51.02 percent or $12.50 million from year ago period.
Cash flow from financing activities was $12.80 million for the first six months as against cash outgo of $101.20 million in the last year period.
Cash and cash equivalents stood at $87 million as on Apr. 30, 2017, down 2.90 percent or $2.60 million from $89.60 million on Apr. 30, 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
