Inter Parfums, Inc. (IPAR) has reported an 82.34 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $13.37 million, or $0.43 a share in the quarter, compared with $7.33 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 28.28 percent to $143.06 million from $111.52 million in the previous year period. Gross margin for the quarter contracted 99 basis points over the previous year period to 62.96 percent. Total expenses were 81.71 percent of quarterly revenues, down from 84.28 percent for the same period last year. This has led to an improvement of 257 basis points in operating margin to 18.29 percent.
Operating income for the quarter was $26.17 million, compared with $17.53 million in the previous year period.
Discussing the Company’s European based operations, Jean Madar, Chairman & CEO of Inter Parfums, Inc., stated, "While new fragrance launches are critical to our growth strategy, when it comes to return on investment, there is nothing more satisfying than recurring sales and profits generated by our best performing legacy scents. We experienced both in the first quarter of 2017."
For financial year 2017, Inter Parfums, Inc. expects revenue to be in the range of $550 million to $560 million. The company projects diluted earnings per share to be in the range of $1.20 to $1.24.
Working capital decreases marginally
Inter Parfums, Inc. has witnessed a decline in the working capital over the last year. It stood at $344.20 million as at Mar. 31, 2017, down 2.08 percent or $7.32 million from $351.52 million on Mar. 31, 2016. Current ratio was at 3.32 as on Mar. 31, 2017, down from 3.64 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 78 days for the quarter from 200 days for the last year period. Days sales outstanding went down to 77 days for the quarter compared with 85 days for the same period last year.
Days inventory outstanding has decreased to 95 days for the quarter compared with 239 days for the previous year period. At the same time, days payable outstanding went down to 94 days for the quarter from 124 for the same period last year.
Debt comes down significantly
Inter Parfums, Inc. has recorded a decline in total debt over the last one year. It stood at $70.17 million as on Mar. 31, 2017, down 28.25 percent or $27.63 million from $97.80 million on Mar. 31, 2016. Total debt was 9.97 percent of total assets as on Mar. 31, 2017, compared with 13.73 percent on Mar. 31, 2016. Debt to equity ratio was at 0.14 as on Mar. 31, 2017, down from 0.20 as on Mar. 31, 2016. Interest coverage ratio improved to 96.57 for the quarter from 18.02 for the same period last year.
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