Shire Plc (SHPG) has reported 62.97 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $457.30 million, or $1.51 a share in the quarter, compared with $280.60 million, or $1.42 a share for the same period last year. On an adjusted basis, earnings per share were at $3.37 for the quarter compared with $2.97 in the same period last year.
Revenue during the quarter surged 121.84 percent to $3,806.10 million from $1,715.70 million in the previous year period. Total expenses were 80.85 percent of quarterly revenues, up from 79.22 percent for the same period last year. That has resulted in a contraction of 163 basis points in operating margin to 19.15 percent.
Operating income for the quarter was $728.70 million, compared with $356.50 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,394.50 million compared to $763.80 million in the prior year period.
Flemming Ornskov, M.D., M.P.H., Shire chief executive officer, commented “2016 was a transformational year for Shire as we became the world leader in rare diseases. Our innovative portfolio and sharp focus on commercial excellence enabled us to generate double digit pro forma top-line growth, with reported sales of $10.9 billion, while materially advancing the pipeline, successfully integrating Dyax and progressing the Baxalta integration ahead of schedule.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $6.95 to $7.55, the company expects diluted earnings per share to be in the range of $14.60 to $15.20 on adjusted basis.
Operating cash flow improvesShire Plc has generated cash of $2,658.90 million from operating activities during the year, up 13.77 percent or $321.90 million, when compared with the last year. The company has spent $18,092.20 million cash to meet investing activities during the year as against cash outgo of $5,619.90 million in the last year.
Cash flow from financing activities was $15,825.80 million for the year, up 3,504.97 percent or $15,386.80 million, when compared with the last year.
Cash and cash equivalents stood at $528.80 million as on Dec. 31, 2016, up 290.26 percent or $393.30 million from $135.50 million on Dec. 31, 2015.
Debt increases substantially
Shire Plc has witnessed an increase in total debt over the last one year. It stood at $22,967.80 million as on Dec. 31, 2016, up 1,340.17 percent or $21,373 million from $1,594.80 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 4.83 for the quarter from 35.65 for the same period last year.
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