Pinnacle Foods Inc (PF) has reported a 7.69 percent fall in profit for the quarter ended Mar. 26, 2017. The company has earned $22.93 million, or $0.19 a share in the quarter, compared with $24.84 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $60.20 million, or $0.50 a share compared with $47.38 million or $0.40 a share, a year ago. Revenue during the quarter went up marginally by 1.57 percent to $766.07 million from $754.26 million in the previous year period. Gross margin for the quarter expanded 123 basis points over the previous year period to 27.55 percent. Total expenses were 85.48 percent of quarterly revenues, down from 89.36 percent for the same period last year. This has led to an improvement of 387 basis points in operating margin to 14.52 percent.
Operating income for the quarter was $111.21 million, compared with $80.28 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $146.88 million compared with $131.68 million in the prior year period. At the same time, adjusted EBITDA margin improved 172 basis points in the quarter to 19.17 percent from 17.46 percent in the last year period.
Commenting on the results, Pinnacle Foods chief executive officer Mark Clouse stated, “We are pleased with our strong start to 2017. Our Adjusted Gross Margin advanced a healthy 120 basis points in the quarter, and we posted another period of market share and retail distribution expansion, all while maintaining our operating expense discipline. Our breakthrough Duncan Hines Perfect Size for 1 innovation launched in the first quarter is off to an exceptionally strong start, and we are equally excited about the Birds Eye new product platforms rolling out now.”
Operating cash flow declines
Pinnacle Foods Inc has generated cash of $62.99 million from operating activities during the quarter, down 17.93 percent or $ 13.76 million, when compared with the last year period. The company has spent $28.56 million cash to meet investing activities during the quarter as against cash outgo of $1,019.30 million in the last year period.
The company has spent $246.18 million cash to carry out financing activities during the quarter as against cash inflow of $843.30 million in the last year period.
Cash and cash equivalents stood at $141.45 million as on Mar. 26, 2017, up 73.69 percent or $60.02 million from $81.44 million on Mar. 27, 2016.
Working capital declines
Pinnacle Foods Inc has witnessed a decline in the working capital over the last year. It stood at $349.21 million as at Mar. 26, 2017, down 21.46 percent or $95.42 million from $444.63 million on Mar. 27, 2016. Current ratio was at 1.62 as on Mar. 26, 2017, down from 1.92 on Mar. 27, 2016.
Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 64 days for the last year period. Days sales outstanding were almost stable at 31 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 37 days for the quarter compared with 69 days for the previous year period. At the same time, days payable outstanding went up to 43 days for the quarter from 37 for the same period last year.
Debt comes down
Pinnacle Foods Inc has recorded a decline in total debt over the last one year. It stood at $2,983.34 million as on Mar. 26, 2017, down 5.49 percent or $173.16 million from $3,156.50 million on Mar. 27, 2016. Total debt was 45.92 percent of total assets as on Mar. 26, 2017, compared with 48.44 percent on Mar. 27, 2016. Debt to equity ratio was at 1.52 as on Mar. 26, 2017, down from 1.75 as on Mar. 27, 2016. Interest coverage ratio deteriorated to 1.38 for the quarter from 2.54 for the same period last year.
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