Middleby Corporation (MIDD) has reported a 55.35 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $75.85 million, or $1.33 a share in the quarter, compared with $48.82 million, or $0.86 a share for the same period last year.
Revenue during the quarter grew 27.89 percent to $574.22 million from $449 million in the previous year period. Gross margin for the quarter expanded 89 basis points over the previous year period to 40.35 percent. Total expenses were 78.85 percent of quarterly revenues, down from 82.18 percent for the same period last year. This has led to an improvement of 332 basis points in operating margin to 21.15 percent.
Operating income for the quarter was $121.44 million, compared with $80.03 million in the previous year period.
Selim A. Bassoul chairman and chief executive officer, commented, "At the Commercial Foodservice Equipment Group, continued strong sales increases in the international markets were offset by a decline in sales domestically, reflecting slower general market conditions in the U.S. and delayed purchases from several restaurant chains in comparison to a comparatively strong 2015. Despite the third quarter sales results, we continue to see strong development activity with our restaurant chain customers adopting our innovative equipment solutions and anticipate improved sales growth in the fourth quarter at this segment."
Working capital increases
Middleby Corporation has recorded an increase in the working capital over the last year. It stood at $344.40 million as at Oct. 01, 2016, up 13.29 percent or $40.39 million from $304.02 million on Oct. 03, 2015. Current ratio was at 1.71 as on Oct. 01, 2016, up from 1.58 on Oct. 03, 2015.
Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 117 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 54 days for the same period last year.
Days inventory outstanding has decreased to 51 days for the quarter compared with 111 days for the previous year period. At the same time, days payable outstanding went down to 34 days for the quarter from 49 for the same period last year.
Debt moves up
Middleby Corporation has witnessed an increase in total debt over the last one year. It stood at $833.32 million as on Oct. 01, 2016, up 10.39 percent or $78.42 million from $754.90 million on Oct. 03, 2015. Total debt was 28.58 percent of total assets as on Oct. 01, 2016, compared with 27.85 percent on Oct. 03, 2015. Debt to equity ratio was at 0.62 as on Oct. 01, 2016, down from 0.67 as on Oct. 03, 2015.
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