Monsanto Company (MON) swung to a net profit for the quarter ended Nov. 30, 2016. The company has made a net profit of $29 million, or $ 0.07 a share in the quarter, against a net loss of $253 million, or $0.56 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $91 million, or $0.21 a share compared with a net loss of $52 million, or $0.11 a share in the last year period.
Revenue during the quarter grew 19.42 percent to $2,650 million from $2,219 million in the previous year period. Gross margin for the quarter expanded 691 basis points over the previous year period to 47.51 percent. Operating margin for the quarter period stood at positive 9.32 percent as compared to a negative 12.26 percent for the previous year period.
Operating income for the quarter was $247 million, compared with an operating loss of $272 million in the previous year period.
"We've been very pleased with the strong support - especially from shareowners and growers - for the agreement to combine with Bayer," said Hugh Grant, chairman and chief executive officer. "We expect the combination with Bayer to amplify the rate of innovation faster than either company could achieve alone, which will be critical in helping to increase grower productivity to meet projected demand in the decades ahead."
For the second-quarter 2017, the company expects diluted earnings per share to be in the range of $2.62 to $2.86. On an adjusted basis, the company expects diluted earnings per share to be in the range of $2.70 to $2.90.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.97 to $4.45. The company expects diluted earnings per share to be in the range of $4.50 to $4.90 on adjusted basis.
Operating cash flow improves
Monsanto Company has generated cash of $1,463 million from operating activities during the quarter, up 7.34 percent or $100 million, when compared with the last year period.
The company has spent $327 million cash to meet investing activities during the quarter as against cash outgo of $336 million in the last year period.
The company has spent $655 million cash to carry out financing activities during the quarter as against cash outgo of $2,414 million in the last year period.
Cash and cash equivalents stood at $2,129 million as on Nov. 30, 2016, down 6.50 percent or $148 million from $2,277 million on Nov. 30, 2015.
Working capital increases
Monsanto Company has recorded an increase in the working capital over the last year. It stood at $2,152 million as at Nov. 30, 2016, up 9.46 percent or $186 million from $1,966 million on Nov. 30, 2015. Current ratio was at 1.29 as on Nov. 30, 2016, up from 1.23 on Nov. 30, 2015.
Cash conversion cycle (CCC) has decreased to 158 days for the quarter from 323 days for the last year period. Days sales outstanding went down to 95 days for the quarter compared with 114 days for the same period last year.
Days inventory outstanding has decreased to 126 days for the quarter compared with 269 days for the previous year period. At the same time, days payable outstanding went up to 62 days for the quarter from 60 for the same period last year.
Debt comes down
Monsanto Company has recorded a decline in total debt over the last one year. It stood at $8,617 million as on Nov. 30, 2016, down 11.41 percent or $1,110 million from $9,727 million on Nov. 30, 2015. Total debt was 41.11 percent of total assets as on Nov. 30, 2016, compared with 45.36 percent on Nov. 30, 2015. Debt to equity ratio was at 1.95 as on Nov. 30, 2016, down from 2.73 as on Nov. 30, 2015.
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