VWR Corporation (VWR) has reported a 49.53 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $27 million, or $0.20 a share in the quarter, compared with $53.50 million, or $0.41 a share for the same period last year. On an adjusted basis, earnings per share were at $0.45 for the quarter compared with $0.47 in the same period last year. Revenue during the quarter went up marginally by 1.60 percent to $1,130.30 million from $1,112.50 million in the previous year period. Gross margin for the quarter expanded 13 basis points over the previous year period to 27.81 percent. Total expenses were 93.98 percent of quarterly revenues, up from 92.12 percent for the same period last year. That has resulted in a contraction of 186 basis points in operating margin to 6.02 percent.
Operating income for the quarter was $68.10 million, compared with $87.70 million in the previous year period.
Manuel Brocke-Benz, president and chief executive officer of VWR, commented: "In 2016 we reported strong financial results, with organic revenue growth of 3.2%, comfortably within our long-term revenue expectation. Our solid revenues drove the robust earnings and cash flows for the fiscal year. In 2016, it is clear that VWR executed, delivered, and set the table for continued growth in 2017 and beyond."
For fiscal year 2017, VWR Corporation forecasts revenue to be in the range of $4,560 million to $4,610 million. The company expects diluted earnings per share to be in the range of $1.79 to $1.87 on adjusted basis.
Operating cash flow improves
VWR Corporation has generated cash of $266.20 million from operating activities during the year, up 18.31 percent or $41.20 million, when compared with the last year. The company has spent $202.70 million cash to meet investing activities during the year as against cash outgo of $97.90 million in the last year.
The company has spent $26.80 million cash to carry out financing activities during the year as against cash outgo of $96.10 million in the last year period.
Cash and cash equivalents stood at $168.70 million as on Dec. 31, 2016, up 23.77 percent or $32.40 million from $136.30 million on Dec. 31, 2015.
Working capital declines
VWR Corporation has witnessed a decline in the working capital over the last year. It stood at $366 million as at Dec. 31, 2016, down 11.57 percent or $47.90 million from $413.90 million on Dec. 31, 2015. Current ratio was at 1.37 as on Dec. 31, 2016, down from 1.51 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 25 days for the quarter from 21 days for the last year period. Days sales outstanding were almost stable at 25 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 27 days for the quarter compared with 24 days for the previous year period. At the same time, days payable outstanding was almost stable at 27 days for the quarter, when compared with the previous year period.
Debt moves up marginally
VWR Corporation has witnessed an increase in total debt over the last one year. It stood at $2,017 million as on Dec. 31, 2016, up 1.41 percent or $28 million from $1,989 million on Dec. 31, 2015. Total debt was 40.64 percent of total assets as on Dec. 31, 2016, compared with 41.49 percent on Dec. 31, 2015. Debt to equity ratio was at 1.35 as on Dec. 31, 2016, down from 1.49 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 3.55 for the quarter from 4.59 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]
