Natural Grocers by Vitamin Cottage (NGVC) has reported 16.24 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3 million, or $0.13 a share in the quarter, compared with $3.58 million, or $0.16 a share for the same period last year.
Revenue during the quarter grew 8.35 percent to $192.20 million from $177.40 million in the previous year period. Gross margin for the quarter contracted 91 basis points over the previous year period to 28.18 percent. Total expenses were 97.13 percent of quarterly revenues, up from 96.36 percent for the same period last year. That has resulted in a contraction of 77 basis points in operating margin to 2.87 percent.
Operating income for the quarter was $5.52 million, compared with $6.45 million in the previous year period.
For financial year 2017, Natural Grocers by Vitamin Cottage projects revenue to grow in the range of 1.40 percent to 1.50 percent. The company forecasts diluted earnings per share to be in the range of $0.50 to $0.54.
Operating cash flow improvesNatural Grocers by Vitamin Cottage has generated cash of $22.44 million from operating activities during the first half, up 24.61 percent or $4.43 million, when compared with the last year period. The company has spent $21.03 million cash to meet investing activities during the first six months as against cash outgo of $23.65 million in the last year period. It has incurred net capital expenditure of $21.03 million on net basis during the first six months, down 11.07 percent or $2.62 million from year ago period.
The company has spent $1.19 million cash to carry out financing activities during the first six months as against cash inflow of $8.33 million in the last year period.
Cash and cash equivalents stood at $4.23 million as on Mar. 31, 2017, down 24.39 percent or $1.37 million from $5.60 million on Mar. 31, 2016.
Working capital increases
Natural Grocers by Vitamin Cottage has recorded an increase in the working capital over the last year. It stood at $26.60 million as at Mar. 31, 2017, up 16.49 percent or $3.77 million from $22.83 million on Mar. 31, 2016. Current ratio was at 1.35 as on Mar. 31, 2017, up from 1.32 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 6 days for the quarter from 21 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 30 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 39 for the same period last year.
Debt increases substantiallyNatural Grocers by Vitamin Cottage has witnessed an increase in total debt over the last one year. It stood at $58.40 million as on Mar. 31, 2017, up 50.53 percent or $19.60 million from $38.80 million on Mar. 31, 2016. Total debt was 19.73 percent of total assets as on Mar. 31, 2017, compared with 15.01 percent on Mar. 31, 2016. Debt to equity ratio was at 0.44 as on Mar. 31, 2017, up from 0.31 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 6.27 for the quarter from 8.80 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
