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Bunge Limited (BG) has reported 80 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $47 million, or $0.27 a share in the quarter, compared with $235 million, or $1.54 a share for the same period last year. On an adjusted basis, earnings per share were at $0.35 for the quarter compared with $1.41 in the same period last year. Revenue during the quarter grew 24.73 percent to $11,121 million from $8,916 million in the previous year period. Gross margin for the quarter contracted 282 basis points over the previous year period to 4.14 percent. Total expenses were 99.25 percent of quarterly revenues, up from 96.53 percent for the same period last year. That has resulted in a contraction of 272 basis points in operating margin to 0.75 percent.
Soren Schroder, Bunge’s Chief Executive Officer, stated, “The slow pace of farmer selling in South America compressed margins in Agribusiness and led to a lower than expected first quarter. Our teams managed risks, logistics and industrial operations well. Despite this difficult start, we continue to expect 2017 to be a year of solid year-over-year earnings growth, although below our prior expectations.
Operating cash flow turns negative
Bunge Limited has spent $47 million cash to meet operating activities during the quarter as against cash inflow of $77 million in the last year period. The company has spent $607 million cash to meet investing activities during the quarter as against cash outgo of $212 million in the last year period.
Cash flow from financing activities was $376 million for the quarter, up 71.69 percent or $157 million, when compared with the last year period.
Cash and cash equivalents stood at $676 million as on Mar. 31, 2017, up 29.25 percent or $153 million from $523 million on Mar. 31, 2016.
Working capital declines
Bunge Limited has witnessed a decline in the working capital over the last year. It stood at $3,392 million as at Mar. 31, 2017, down 21.68 percent or $939 million from $4,331 million on Mar. 31, 2016. Current ratio was at 1.39 as on Mar. 31, 2017, down from 1.61 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 7 days for the quarter from 36 days for the last year period. Days sales outstanding went down to 13 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 51 days for the previous year period. At the same time, days payable outstanding went down to 28 days for the quarter from 33 for the same period last year.
Debt moves up marginally
Bunge Limited has witnessed an increase in total debt over the last one year. It stood at $5,197 million as on Mar. 31, 2017, up 1.70 percent or $87 million from $5,110 million on Mar. 31, 2016. Total debt was 25.20 percent of total assets as on Mar. 31, 2017, compared with 26.98 percent on Mar. 31, 2016. Debt to equity ratio was at 0.68 as on Mar. 31, 2017, down from 0.73 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 1.28 for the quarter from 5.42 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: editor@irisindia.net
