Inter Parfums (IPAR) has reported 111.24 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $3.93 million, or $0.13 a share in the quarter, compared with $1.86 million, or $0.06 a share for the same period last year.
Revenue during the quarter grew 13.90 percent to $134.77 million from $118.33 million in the previous year period. Gross margin for the quarter contracted 25 basis points over the previous year period to 63.73 percent. Total expenses were 96 percent of quarterly revenues, down from 96.40 percent for the same period last year. This has led to an improvement of 40 basis points in operating margin to 4 percent.
Operating income for the quarter was $5.38 million, compared with $4.26 million in the previous year period.
Jean Madar, chairman & chief executive officer of Inter Parfums, Inc. noted, "With regard to European based operations, our largest brand, Montblanc fragrances led the way with year-over-year sales growth of 25% due to the successful launch of the Legend Spirit line, as well as the solid performance of the original Legend line. We are also seeing a sales uptick in the brand’s Lady Emblem collection in certain markets. Our top line also benefited from the inclusion and better than expected performance of our first ever Coach women’s fragrance, which generated $23 million in sales in 2016. Rochas contributed $34.6 million to full year sales; we began consolidating the brand’s sales when we acquired Rochas in June 2015. Sales by our second largest brand, Jimmy Choo, were off a modest 2% for the year, because of a difficult comparison to 2015 when we launched Jimmy Choo Illicit and rolled out Jimmy Choo Man."
For financial year 2017, Inter Parfums projects revenue to be in the range of $550 million to $560 million. The company forecasts diluted earnings per share to be in the range of $1.20 to $1.24.
Working capital remains almost stableWorking capital of Inter Parfums remained almost stable for the quarter at $337.98 million, when compared with the previous year period. Current ratio was at 3.38 as on Dec. 31, 2016, down from 3.58 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 89 days for the last year period. Days sales outstanding were almost stable at 39 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 91 days for the quarter compared with 106 days for the previous year period. At the same time, days payable outstanding went down to 47 days for the quarter from 55 for the same period last year.
Debt comes downInter Parfums has recorded a decline in total debt over the last one year. It stood at $74.56 million as on Dec. 31, 2016, down 24.38 percent or $24.04 million from $98.61 million on Dec. 31, 2015. Total debt was 10.93 percent of total assets as on Dec. 31, 2016, compared with 14.34 percent on Dec. 31, 2015. Debt to equity ratio was at 0.15 as on Dec. 31, 2016, down from 0.21 as on Dec. 31, 2015. Interest coverage ratio improved to 33.87 for the quarter from 4.19 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
