Mead Johnson Nutrition Company (MJN) has reported a 31.09 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $167.80 million, or $0.91 a share in the quarter, compared with $128 million, or $0.67 a share for the same period last year. On an adjusted basis, profit per share for the quarter was stable at $0.78, when compared with the last year period.
Revenue during the quarter dropped 6.76 percent to $901.60 million from $967 million in the previous year period. Gross margin for the quarter expanded 87 basis points over the previous year period to 63.79 percent. Total expenses were 58.64 percent of quarterly revenues, down from 64.13 percent for the same period last year. This has led to an improvement of 549 basis points in operating margin to 41.36 percent.
Operating income for the quarter was $372.90 million, compared with $346.90 million in the previous year period.
"In the fourth quarter we continued to make progress with a series of important strategic transitions in key markets. Our imported products again grew strongly in China - and we doubled our sales volume via e-commerce out of Hong Kong over the prior quarter. Though it will take some time for us to complete the transition phase we are currently in, we are encouraged by early signs our plans are working", said Kasper Jakobsen, chief executive officer.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.05 to $3.20. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.35 to $3.50 on adjusted basis.
Operating cash flow declines
Mead Johnson Nutrition Company has generated cash of $691.60 million from operating activities during the year, down 23.99 percent or $218.30 million, when compared with the last year.
The company has spent $148.70 million cash to meet investing activities during the year as against cash outgo of $173.20 million in the last year. It has incurred net capital expenditure of $148.70 million on net basis during the year, down 14.15 percent or $24.50 million from year ago.
The company has spent $399.60 million cash to carry out financing activities during the year as against cash outgo of $286.80 million in the last year period.
Cash and cash equivalents stood at $1,795.40 million as on Dec. 31, 2016, up 5.52 percent or $94 million from $1,701.40 million on Dec. 31, 2015.
Working capital increases
Mead Johnson Nutrition Company has recorded an increase in the working capital over the last year. It stood at $1,462.40 million as at Dec. 31, 2016, up 8.40 percent or $113.30 million from $1,349.10 million on Dec. 31, 2015. Current ratio was at 2.18 as on Dec. 31, 2016, up from 2.08 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 17 days for the last year period. Days sales outstanding went up to 19 days for the quarter compared with 16 days for the same period last year.
Days inventory outstanding has increased to 67 days for the quarter compared with 62 days for the previous year period. At the same time, days payable outstanding went up to 73 days for the quarter from 62 for the same period last year.
Debt remains almost stable
Total debt of Mead Johnson Nutrition Company remained almost stable for the quarter at $2,980.10 million, when compared with the last year period. Total debt was 72.90 percent of total assets as on Dec. 31, 2016, compared with 74.64 percent on Dec. 31, 2015.
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
