Alliance One International, Inc. (AOI) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.31 million, or $ 0.03 a share in the quarter, against a net profit of $100.81 million, or $11.33 a share in the last year period.

Revenue during the quarter dropped 16.75 percent to $609.69 million from $732.32 million in the previous year period. Gross margin for the quarter expanded 114 basis points over the previous year period to 11.08 percent. Total expenses were 94.63 percent of quarterly revenues, up from 80.92 percent for the same period last year. That has resulted in a contraction of 1371 basis points in operating margin to 5.37 percent.

Operating income for the quarter was $32.74 million, compared with $139.73 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $44.30 million compared with $65.02 million in the prior year period. At the same time, adjusted EBITDA margin contracted 161 basis points in the quarter to 7.27 percent from 8.88 percent in the last year period.

Pieter Sikkel, chief executive officer and president, said, "With our heavy weighting in Brazil, the United States and Tanzania ��" three crops that were hit hardest by El Niño and had related reductions in crop size and yields and consequently increases in conversion cost ��" we were significantly impacted in fiscal 2017 by unusual and uncontrollable events, which overshadowed substantial improvements in many origins and targeted improvements to the balance sheet. "As we look to fiscal year 2018, global market conditions are positive with good early weather patterns that support better global growing conditions. These conditions should result in increased crop sizes in Brazil and Argentina. We have almost completed buying in Zimbabwe and are approximately 65% complete in Brazil."