Revenue during the quarter grew 14.40 percent to $668.77 million from $584.59 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 20.25 percent. Total expenses were 87.56 percent of quarterly revenues, down from 88.16 percent for the same period last year. This has led to an improvement of 60 basis points in operating margin to 12.44 percent.

Operating income for the quarter was $83.21 million, compared with $69.22 million in the previous year period.

Mr. Freeman stated, “We are pleased with the performance of our operations thus far this fiscal year, particularly in light of difficult supply conditions, including the weather-related crop reduction in Brazil. Despite these headwinds, we have been able to secure some additional sales which have helped to increase our volumes handled so far this fiscal year. In addition, our third fiscal quarter this year benefited from higher volumes mainly due to earlier shipping patterns than those of the prior year. We expect our volumes for the fourth quarter of fiscal year 2017 to be lower than those achieved in the fourth quarter of the prior year, given our reduced buying program in Brazil this fiscal year, and some earlier shipments from other origins. Last fiscal year’s fourth quarter volumes were exceptionally strong for us and included significant volumes from Brazil. However, we now believe our total lamina volumes for fiscal year 2017 will be only modestly lower than those volumes in fiscal year 2016.

The company has spent $27.88 million cash to meet investing activities during the nine month period as against cash outgo of $43.49 million in the last year period. It has incurred net capital expenditure of $27.88 million on net basis during the nine month period, down 17.81 percent or $6.04 million from year ago period.

The company has spent $62.06 million cash to carry out financing activities during the nine month period as against cash outgo of $47.24 million in the last year period.

Cash and cash equivalents stood at $411.51 million as on Dec. 31, 2016, up 145.49 percent or $243.88 million from $167.62 million on Dec. 31, 2015.

Working capital increases marginally
Universal Corporation has recorded an increase in the working capital over the last year. It stood at $1,426.27 million as at Dec. 31, 2016, up 4.08 percent or $55.88 million from $1,370.39 million on Dec. 31, 2015. Current ratio was at 6.97 as on Dec. 31, 2016, up from 5.71 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 119 days for the quarter from 264 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 69 days for the quarter compared with 209 days for the previous year period. At the same time, days payable outstanding went down to 1 days for the quarter from 2 for the same period last year.