John B. Sanfilippo & Son,Inc. (JBSS) has reported a 27.41 percent rise in profit for the quarter ended Sep. 29, 2016. The company has earned $10.18 million, or $0.89 a share in the quarter, compared with $7.99 million, or $0.71 a share for the same period last year.
Revenue during the quarter went down marginally by 1.54 percent to $222.29 million from $225.78 million in the previous year period. Gross margin for the quarter expanded 170 basis points over the previous year period to 16.41 percent. Total expenses were 92.55 percent of quarterly revenues, down from 93.91 percent for the same period last year. This has led to an improvement of 136 basis points in operating margin to 7.45 percent.
Operating income for the quarter was $16.56 million, compared with $13.74 million in the previous year period.
"Net income and diluted earnings per share reached record levels for a first quarter due to a significant increase in sales volume and improved gross profit margin," stated Jeffrey T. Sanfilippo, Chief Executive Officer. "Approximately 50% of the total sales volume increase came from increased sales of our branded products. As was the case in fiscal 2016, sales volume growth for our brands continues to outpace sales volume growth for our private brand products," Mr. Sanfilippo noted.
Working capital declines
John B. Sanfilippo & Son,Inc. has witnessed a decline in the working capital over the last year. It stood at $139.76 million as at Sep. 29, 2016, down 9.54 percent or $14.74 million from $154.50 million on Sep. 24, 2015. Current ratio was at 2.58 as on Sep. 29, 2016, up from 2.28 on Sep. 24, 2015.
Cash conversion cycle (CCC) has decreased to 41 days for the quarter from 95 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 36 days for the quarter compared with 91 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.
Debt comes down significantly
John B. Sanfilippo & Son,Inc. has recorded a decline in total debt over the last one year. It stood at $34.32 million as on Sep. 29, 2016, down 46.28 percent or $29.56 million from $63.88 million on Sep. 24, 2015. Total debt was 9.06 percent of total assets as on Sep. 29, 2016, compared with 14.98 percent on Sep. 24, 2015. Debt to equity ratio was at 0.15 as on Sep. 29, 2016, down from 0.26 as on Sep. 24, 2015. Interest coverage ratio improved to 26.62 for the quarter from 15.02 for the same period last year.
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