SunOpta Inc. (STKL) saw its loss widen to $33.48 million, or $0.41 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $30.07 million, or $0.35 a share. On an adjusted basis, net loss for the quarter stood at $7.29 million, or $0.08 a share compared with a net profit of $2.42 million, or $0.03 a share in the last year period.
Revenue during the quarter dropped 5.95 percent to $297.54 million from $316.38 million in the previous year period. Gross margin for the quarter contracted 225 basis points over the previous year period to 5.73 percent. Operating margin for the quarter stood at negative 11.11 percent as compared to a negative 3 percent for the previous year period.
Operating loss for the quarter was $33.06 million, compared with an operating loss of $9.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.41 million compared with $18.22 million in the prior year period. At the same time, adjusted EBITDA margin contracted 260 basis points in the quarter to 3.16 percent from 5.76 percent in the last year period.
Significant progress has been made identifying the immediate strategic actions that support our Value Creation Plan," said David Colo, President and Chief Executive Officer. "We have worked diligently evaluating all aspects of the business, defining initial actions and building the team and processes to execute our strategic plan to drive long-term shareholder value. As we implement the four pillars of our strategic plan, we will refine our product portfolio, improve execution, broaden our sales effort and build a sustainable platform for profitable growth. We believe SunOpta is well positioned to benefit from the growing trend for healthier foods and we are building the platform for long-term achievement of our strategic goals and increased returns for shareholders."
Operating cash flow drops significantly
SunOpta Inc. has generated cash of $1.48 million from operating activities during the year, down 95.27 percent or $29.76 million, when compared with the last year.
The company has spent $19.85 million cash to meet investing activities during the year as against cash outgo of $522.82 million in the last year.
Cash flow from financing activities was $15.59 million for the year, down 96.79 percent or $470.08 million, when compared with the last year.
Cash and cash equivalents stood at $1.25 million as on Dec. 31, 2016, down 44.99 percent or $1.02 million from $2.27 million on Jan. 02, 2016.
Working capital drops significantly
SunOpta Inc. has witnessed a decline in the working capital over the last year. It stood at $157.66 million as at Dec. 31, 2016, down 27.48 percent or $59.73 million from $217.39 million on Jan. 02, 2016. Current ratio was at 1.40 as on Dec. 31, 2016, down from 1.57 on Jan. 02, 2016.
Debt comes down
SunOpta Inc. has recorded a decline in total debt over the last one year. It stood at $432.58 million as on Dec. 31, 2016, down 10.40 percent or $50.19 million from $482.77 million on Jan. 02, 2016. Total debt was 38.30 percent of total assets as on Dec. 31, 2016, compared with 39.60 percent on Jan. 02, 2016. Debt to equity ratio was at 1.17 as on Dec. 31, 2016, up from 1.13 as on Jan. 02, 2016.
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