Mccormick Company (MKC) has reported a marginal increase of 0.11 percent in profit for the quarter ended Feb. 28, 2017. The company has earned $93.50 million, or $0.74 a share, compared with $93.40 million or $0.73 a share, a year ago. On the other hand, adjusted net income for the quarter stood at $96 million, or $0.76 a share compared with $94.70 million or $0.74 a share, a year ago. Revenue during the quarter went up marginally by 1.31 percent to $1,043.70 million from $1,030.20 million in the previous year period. Gross margin for the quarter expanded 26 basis points over the previous year period to 39.57 percent. Total expenses were 87.14 percent of quarterly revenues, down from 87.47 percent for the same period last year. This has led to an improvement of 33 basis points in operating margin to 12.86 percent.
Operating income for the quarter was $134.20 million, compared with $129.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $137.80 million compared to $130.70 million in the prior year period. At the same time, adjusted operating margin improved 52 basis points in the quarter to 13.20 percent from 12.69 percent in the last year period.
Lawrence E. Kurzius, chairman, president and chief executive officer, stated, "Our first quarter financial results were a solid start to the year delivering profit results in line with our expectations. Sales in our consumer segment were up from the year ago period, with strong momentum in China and the benefit of acquisitions, partially offset by the impact of a challenging retail environment in the U.K. Our industrial business delivered solid sales growth driven by our foodservice brands and customized flavors in the Americas and demand from quick service restaurants in the Asia/Pacific region. Both segments achieved an increase in operating income and higher operating income margins.
Mccormick Company expects revenue to grow in the range of 3 percent to 5 percent for the financial year 2017. For fiscal year 2017, the company expects operating income to grow in the range of 9 percent to 11 percent. For fiscal year 2017, the company expects adjusted operating income to grow in the range of 8 percent to 10 percent. For financial year 2017, the company projects diluted earnings per share to be in the range of $3.98 to $4.06. For financial year 2017, the company projects diluted earnings per share to be in the range of $4.05 to $4.13 on adjusted basis.
Operating cash flow drops significantlyMccormick Company has generated cash of $44.30 million from operating activities during the quarter, down 43.64 percent or $ 34.30 million, when compared with the last year period. The company has spent $152.70 million cash to meet investing activities during the quarter as against cash outgo of $22.20 million in the last year period. It has incurred capital expenditure of $28.70 million on net basis during the quarter, up 29.28 percent or $6.50 million from year ago period.
Cash flow from financing activities was $110.20 million for the quarter as against cash outgo of $46.20 million in the last year period.
Cash and cash equivalents stood at $125.70 million as on Feb. 28, 2017, up 12.43 percent or $13.90 million from $111.80 million on Feb. 29, 2016.
Debt moves up
Mccormick Company has witnessed an increase in total debt over the last one year. It stood at $1,693.10 million as on Feb. 28, 2017, up 17.15 percent or $247.90 million from $1,445.20 million on Feb. 29, 2016. Total debt was 35.64 percent of total assets as on Feb. 28, 2017, compared with 32.84 percent on Feb. 29, 2016. Debt to equity ratio was at 0.97 as on Feb. 28, 2017, up from 0.84 as on Feb. 29, 2016. Interest coverage ratio deteriorated to 9.26 for the quarter from 9.29 for the same period last year. 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
