Greif, Inc. (GEF) swung to a net profit for the quarter ended Jan. 31, 2017. The company has made a net profit of $5.40 million in the quarter, against a net loss of $11.10 million in the last year period. On an adjusted basis, net profit for the quarter was $26.40 million, when compared with $23 million in the last year period.
Revenue during the quarter grew 6.42 percent to $820.90 million from $771.40 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 19.89 percent. Total expenses were 94.87 percent of quarterly revenues, down from 97.72 percent for the same period last year. This has led to an improvement of 285 basis points in operating margin to 5.13 percent.
Operating income for the quarter was $42.10 million, compared with $17.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $69.20 million compared with $46.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 235 basis points in the quarter to 8.43 percent from 6.08 percent in the last year period.
"Our global portfolio delivered solid results during the first quarter," said Greif's president and chief executive officer, Pete Watson. "Greif's gross profit and operating profit before special items1 margins both improved as we continued to execute our strategy of improved customer service and disciplined commercial and operational execution. Looking forward, we remain focused on advancing our strategy to generate greater value from our portfolio for the benefit of our customers and shareholders."
For fiscal year 2017, Greif, Inc. expects diluted earnings per share to be in the range of $2.78 to $3.08.
Operating cash flow remains negative
Greif, Inc. has spent $44.10 million cash to meet operating activities during the quarter as against cash outgo of $26.20 million in the last year period.
The company has spent $20.90 million cash to meet investing activities during the quarter as against cash inflow of $16.50 million in the last year period. It has incurred net capital expenditure of $18.80 million on net basis during the quarter, down 32.13 percent or $8.90 million from year ago period.
Cash flow from financing activities was $72.70 million for the quarter as against cash outgo of $27.10 million in the last year period.
Cash and cash equivalents stood at $106.80 million as on Jan. 31, 2017, up 63.55 percent or $41.50 million from $65.30 million on Jan. 31, 2016.
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