Blue Buffalo Pet Products (BUFF) has reported 261.09 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $34.80 million, or $0.17 a share in the quarter, compared with $9.64 million, or $0.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.60 million, or $0.18 a share compared with $31.30 million or $0.16 a share, a year ago.
Revenue during the quarter grew 11.26 percent to $295.10 million from $265.24 million in the previous year period. Gross margin for the quarter expanded 278 basis points over the previous year period to 44.71 percent. Total expenses were 79.66 percent of quarterly revenues, down from 93.13 percent for the same period last year. This has led to an improvement of 1347 basis points in operating margin to 20.34 percent.
Operating income for the quarter was $60.03 million, compared with $18.22 million in the previous year period.
However, the adjusted operating income for the quarter stood at $61.30 million compared to $53.10 million in the prior year period. At the same time, adjusted operating margin improved 75 basis points in the quarter to 20.77 percent from 20.02 percent in the last year period.
"Blue Buffalo delivered in the fourth quarter. We continued to gain share and improve our margins. Our performance reflects the strength of our brand and our investments that generate demand across all channels," said chief executive officer Billy Bishop
For financial year 2017, Blue Buffalo Pet Products projects revenue to be in the range of $1,240 million to $1,270. The company forecasts diluted earnings per share to be in the range of $0.91 to $0.94 on adjusted basis.
Operating cash flow declinesBlue Buffalo Pet Products has generated cash of $127.24 million from operating activities during the year, down 7.94 percent or $10.98 million, when compared with the last year. The company has spent $56.64 million cash to meet investing activities during the year as against cash outgo of $9.56 million in the last year.
The company has spent $2.04 million cash to carry out financing activities during the year as against cash outgo of $0.17 million in the last year period.
Cash and cash equivalents stood at $292.66 million as on Dec. 31, 2016, up 30.50 percent or $68.40 million from $224.25 million on Dec. 31, 2015.
Working capital increases sharply
Blue Buffalo Pet Products has recorded an increase in the working capital over the last year. It stood at $386.35 million as at Dec. 31, 2016, up 34.86 percent or $99.86 million from $286.48 million on Dec. 31, 2015. Current ratio was at 4.91 as on Dec. 31, 2016, up from 3.71 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 29 days for the last year period. Days sales outstanding went up to 18 days for the quarter compared with 14 days for the same period last year.
Days inventory outstanding has decreased to 20 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.
Debt comes down marginallyBlue Buffalo Pet Products has recorded a decline in total debt over the last one year. It stood at $383.14 million as on Dec. 31, 2016, down 1.02 percent or $3.96 million from $387.10 million on Dec. 31, 2015. Total debt was 58.91 percent of total assets as on Dec. 31, 2016, compared with 75.52 percent on Dec. 31, 2015. Debt to equity ratio was at 2.62 as on Dec. 31, 2016, down from 41.71 as on Dec. 31, 2015. Interest coverage ratio improved to 17.73 for the quarter from 4.81 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
