Mallinckrodt Plc (MNK) has reported a 52.93 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $115 million, or $1.06 a share in the quarter, compared with $75.20 million, or $0.63 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $222 million, or $2.04 a share compared with $197.90 million or $1.68 a share, a year ago.
Revenue during the quarter grew 13.92 percent to $887.20 million from $778.80 million in the previous year period. Gross margin for the quarter expanded 58 basis points over the previous year period to 55.25 percent. Total expenses were 83.35 percent of quarterly revenues, down from 88.06 percent for the same period last year. This has led to an improvement of 471 basis points in operating margin to 16.65 percent.
Operating income for the quarter was $147.70 million, compared with $93 million in the previous year period.
“Mallinckrodt finished fiscal 2016 with solid performance in the fourth quarter driven by an ongoing focus on execution in the Specialty Brands segment, which contributed over 70% of our total net sales. Our Acquire to Invest strategy continues to produce benefits as our scientific organization generates compelling new data and clinical evidence for key brands, and our commercial teams bring this data to physicians and their patients to help them make better informed treatment decisions," said Mark Trudeau, president and chief executive officer. “Each of our key branded drugs Acthar, INOMAX, OFIRMEV, and Therakos contributed volume-led, double-digit net sales growth in the quarter, even excluding the extra week. By following our strategy and focusing on execution, we are making steady progress in building a leading specialty pharmaceutical company and are creating near- and long-term value for patients with high unmet medical needs.”
Operating cash flow improves significantly
Mallinckrodt Plc has generated cash of $1,184.60 million from operating activities during the year, up 32.15 percent or $288.20 million, when compared with the last year.
The company has spent $108 million cash to meet investing activities during the year as against cash outgo of $2,296.60 million in the last year.
The company has spent $1,162.30 million cash to carry out financing activities during the year as against cash inflow of $1,069.90 million in the last year period.
Cash and cash equivalents stood at $280.50 million as on Sep. 30, 2016, down 23.34 percent or $85.40 million from $365.90 million on Sep. 25, 2015.
Working capital drops significantly
Mallinckrodt Plc has witnessed a decline in the working capital over the last year. It stood at $271.90 million as at Sep. 30, 2016, down 70.34 percent or $644.80 million from $916.70 million on Sep. 25, 2015. Current ratio was at 1.22 as on Sep. 30, 2016, down from 1.99 on Sep. 25, 2015.
Debt comes down
Mallinckrodt Plc has recorded a decline in total debt over the last one year. It stood at $6,045 million as on Sep. 30, 2016, down 6.95 percent or $451.30 million from $6,496.30 million on Sep. 25, 2015. Total debt was 39 percent of total assets as on Sep. 30, 2016, compared with 39.60 percent on Sep. 25, 2015. Debt to equity ratio was at 1.15 as on Sep. 30, 2016, down from 1.22 as on Sep. 25, 2015. Interest coverage ratio improved to 1.57 for the quarter from 1.21 for the same period last year.
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