Blue Buffalo Pet Products (BUFF) has reported 18.10 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $44.09 million, or $0.22 a share in the quarter, compared with $37.33 million, or $0.19 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $45.20 million, or $0.23 a share compared with $38.30 million or $0.19 a share, a year ago. Revenue during the quarter grew 7.90 percent to $301.95 million from $279.84 million in the previous year period. Gross margin for the quarter expanded 189 basis points over the previous year period to 45.93 percent. Total expenses were 76.03 percent of quarterly revenues, down from 77.32 percent for the same period last year. This has led to an improvement of 128 basis points in operating margin to 23.97 percent.
Operating income for the quarter was $72.36 million, compared with $63.48 million in the previous year period.
However, the adjusted operating income for the quarter stood at $74.10 million compared to $65 million in the prior year period. At the same time, adjusted operating margin improved 131 basis points in the quarter to 24.54 percent from 23.23 percent in the last year period.
"Were off to a good start to the year. As expected, we delivered high-quality results reflecting our ability to grow well ahead of the market, gain share, improve margins, and thrive in a dynamic retail environment," said chief executive officer Billy Bishop.
Blue Buffalo Pet Products expects revenue to be in the range of $1,240 million to $1,270 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $0.91 to $0.94 on adjusted basis.
Operating cash flow improves significantlyBlue Buffalo Pet Products has generated cash of $53.37 million from operating activities during the quarter, up 25.47 percent or $10.84 million, when compared with the last year period. The company has spent $8.36 million cash to meet investing activities during the quarter as against cash outgo of $0.80 million in the last year period.
Cash flow from financing activities was $0.44 million for the quarter as against cash outgo of $0.93 million in the last year period.
Cash and cash equivalents stood at $338.23 million as on Mar. 31, 2017, up 27.59 percent or $73.15 million from $265.09 million on Mar. 31, 2016.
Working capital increases sharply
Blue Buffalo Pet Products has recorded an increase in the working capital over the last year. It stood at $426.79 million as at Mar. 31, 2017, up 26.23 percent or $88.68 million from $338.11 million on Mar. 31, 2016. Current ratio was at 4.97 as on Mar. 31, 2017, down from 5.85 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 51 days for the last year period. Days sales outstanding went up to 28 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding was almost stable at 20 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Blue Buffalo Pet Products has recorded a decline in total debt over the last one year. It stood at $382.15 million as on Mar. 31, 2017, down 1.03 percent or $3.96 million from $386.11 million on Mar. 31, 2016. Total debt was 54.34 percent of total assets as on Mar. 31, 2017, compared with 73.49 percent on Mar. 31, 2016. Debt to equity ratio was at 1.98 as on Mar. 31, 2017, down from 8.19 as on Mar. 31, 2016. Interest coverage ratio improved to 23.60 for the quarter from 17.45 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]
