VWR Corporation (VWR) has reported a 0.77 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $38.50 million, or $0.29 a share in the quarter, compared with $38.80 million, or $0.29 a share for the same period last year. On an adjusted basis, earnings per share were at $0.44 for the quarter compared with $0.40 in the same period last year.
Revenue during the quarter grew 3.71 percent to $1,139.10 million from $1,098.30 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 28.07 percent. Total expenses were 92.85 percent of quarterly revenues, up from 92.74 percent for the same period last year. That has resulted in a contraction of 10 basis points in operating margin to 7.15 percent.
Operating income for the quarter was $81.50 million, compared with $79.70 million in the previous year period.
Manuel Brocke-Benz, president and chief executive officer of VWR, commented: "The first quarter represents a strong start to the year, bolstered by our solid business momentum in EMEA-APAC and improving performance in the Americas. During the first quarter, organic revenues increased 4.3%, with EMEA-APAC up 8.4%. Our solid revenue momentum, coupled with our adjusted operating income margin expansion, drove strong bottom-line performance."
Operating cash flow improves significantly
VWR Corporation has generated cash of $66.50 million from operating activities during the quarter, up 58.33 percent or $24.50 million, when compared with the last year period.
The company has spent $170.10 million cash to meet investing activities during the quarter as against cash outgo of $43.20 million in the last year period.
Cash flow from financing activities was $74.50 million for the quarter as against cash outgo of $10.30 million in the last year period.
Cash and cash equivalents stood at $141.50 million as on Mar. 31, 2017, up 9.10 percent or $11.80 million from $129.70 million on Mar. 31, 2016.
Working capital drops significantly
VWR Corporation has witnessed a decline in the working capital over the last year. It stood at $203.60 million as at Mar. 31, 2017, down 49.43 percent or $199 million from $402.60 million on Mar. 31, 2016. Current ratio was at 1.18 as on Mar. 31, 2017, down from 1.45 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 47 days for the last year period. Days sales outstanding went down to 49 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went down to 53 days for the quarter from 56 for the same period last year.
Debt moves up marginally
VWR Corporation has witnessed an increase in total debt over the last one year. It stood at $2,181 million as on Mar. 31, 2017, up 3.46 percent or $72.90 million from $2,108.10 million on Mar. 31, 2016. Total debt was 42.04 percent of total assets as on Mar. 31, 2017, compared with 42.53 percent on Mar. 31, 2016. Debt to equity ratio was at 1.41 as on Mar. 31, 2017, down from 1.49 as on Mar. 31, 2016. Interest coverage ratio improved to 4.36 for the quarter from 4.15 for the same period last year.
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