Shire Plc (SHPG) has reported a 10.50 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $375 million, or $1.23 a share in the quarter, compared with $419 million, or $2.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,102.10 million, or $3.63 a share compared with $631.80 million or $3.19 a share, a year ago. Revenue during the quarter surged 108.99 percent to $3,572.30 million from $1,709.30 million in the previous year period. Gross margin for the quarter contracted 2260 basis points over the previous year period to 62.85 percent. Total expenses were 86.08 percent of quarterly revenues, up from 68.18 percent for the same period last year. That has resulted in a contraction of 1790 basis points in operating margin to 13.92 percent.
Operating income for the quarter was $497.10 million, compared with $543.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,453.50 million compared to $796.50 million in the prior year period. At the same time, adjusted operating margin contracted 591 basis points in the quarter to 40.69 percent from 46.60 percent in the last year period.
Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, commented: "In the first quarter we delivered strong top-line growth with quarterly product sales of $3.4 billion. I am especially pleased to see that our sales growth came from across our broad portfolio, with genetic diseases growing 14%, our recently launched XIIDRA product achieving a 22% market share and the Baxalta business growing at 8% on a pro forma basis. We also improved our operational efficiency, and are ahead of plan on integrating Baxalta."
Operating cash flow improves
Shire Plc has generated cash of $459.10 million from operating activities during the quarter, up 17.87 percent or $69.60 million, when compared with the last year period. The company has spent $219.80 million cash to meet investing activities during the quarter as against cash outgo of $5,674.10 million in the last year period.
The company has spent $401.80 million cash to carry out financing activities during the quarter as against cash inflow of $5,217.10 million in the last year period.
Cash and cash equivalents stood at stood at $369 million as at Mar. 31, 2017.
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