Mondelez International, Inc (MDLZ) has reported 92.46 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $548 million, or $0.35 a share in the quarter, compared with $7,266 million, or $4.46 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $822 million, or $0.52 a share compared with $2,321 million or $1.47 a share, a year ago. Revenue during the quarter dropped 6.61 percent to $6,396 million from $6,849 million in the previous year period. Gross margin for the quarter contracted 8 basis points over the previous year period to 38.90 percent. Total expenses were 89.02 percent of quarterly revenues, up from 13.91 percent for the same period last year.
Operating income for the quarter was $702 million, compared with $7,802 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,011 million compared to $2,982 million in the prior year period. At the same time, adjusted operating margin contracted 2773 basis points in the quarter to 15.81 percent from 43.54 percent in the last year period.
“Our third quarter results underscore our continued commitment to improve operational efficiency, expand margins and profitably grow volume while also investing in strategic growth initiatives for the longer term,” said Irene Rosenfeld, Chairman and Chief executive officer. “In the face of challenging market conditions, we’re building a stronger, more streamlined company that is well positioned to deliver sustainable, profitable growth and attractive cash generation.”
Operating cash flow declines
Mondelez International, Inc has generated cash of $1,138 million from operating activities during the nine month period, down 19.41 percent or $274 million, when compared with the last year period. The company has spent $521 million cash to meet investing activities during the nine month period as against cash inflow of $3,460 million in the last year period
The company has spent $830 million cash to carry out financing activities during the nine month period as against cash outgo of $4,270 million in the last year period.
Cash and cash equivalents stood at $1,686 million as on Sep. 30, 2016, down 17.31 percent or $353 million from $2,039 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Mondelez International, Inc was negative $5,102 million on Sep. 30, 2016 compared with negative $1,463 million on Sep. 30, 2015. Current ratio was at 0.63 as on Sep. 30, 2016, down from 0.89 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 59 days for the quarter compared with 68 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 66 days for the previous year period. At the same time, days payable outstanding went up to 110 days for the quarter from 103 for the same period last year.
Debt moves up marginally
Mondelez International, Inc has witnessed an increase in total debt over the last one year. It stood at $17,106 million as on Sep. 30, 2016, up 4.57 percent or $747 million from $16,359 million on Sep. 30, 2015. Total debt was 27.04 percent of total assets as on Sep. 30, 2016, compared with 24.64 percent on Sep. 30, 2015. Debt to equity ratio was at 0.62 as on Sep. 30, 2016, up from 0.55 as on Sep. 30, 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
