Ingredion (INGR) has reported 4.62 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $124 million, or $1.68 a share in the quarter, compared with $130 million, or $1.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $139 million, or $1.88 a share compared with $131 million or $1.78 a share, a year ago. Revenue during the quarter grew 6.84 percent to $1,453 million from $1,360 million in the previous year period. Gross margin for the quarter contracted 70 basis points over the previous year period to 24.23 percent. Total expenses were 86.58 percent of quarterly revenues, up from 85.29 percent for the same period last year. That has resulted in a contraction of 129 basis points in operating margin to 13.42 percent.
Operating income for the quarter was $195 million, compared with $200 million in the previous year period.
However, the adjusted operating income for the quarter stood at $212 million compared to $201 million in the prior year period. At the same time, adjusted operating margin contracted 19 basis points in the quarter to 14.59 percent from 14.78 percent in the last year period.
"Our solid first quarter results reflect the overall positive trajectory of our business," said Ilene Gordon, chairman, president and chief executive officer. "Higher core and specialty volumes, good operating efficiency, and the impact of acquisitions, more than offset headwinds in South America. Year-over-year operating income improved in North America, EMEA, and Asia Pacific.
For financial year 2017, the company projects diluted earnings per share to be in the range of $7.25 to $7.55. For financial year 2017, the company projects diluted earnings per share to be in the range of $7.50 to $7.80 on adjusted basis.
Operating cash flow improves significantlyIngredion has generated cash of $131 million from operating activities during the quarter, up 32.32 percent or $32 million, when compared with the last year period. The company has spent $93 million cash to meet investing activities during the quarter as against cash outgo of $73 million in the last year period.
The company has spent $121 million cash to carry out financing activities during the quarter as against cash inflow of $6 million in the last year period.
Cash and cash equivalents stood at $435 million as on Mar. 31, 2017, down 8.81 percent or $42 million from $477 million on Mar. 31, 2016.
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