Mccormick Company (MKC) has reported 5.50 percent rise in profit for the quarter ended Nov. 30, 2016. The company has earned $157.40 million, or $1.24 a share in the quarter, compared with $149.20 million, or $1.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $161.10 million, or $1.27 a share compared with $152.20 million or $1.18 a share, a year ago. Revenue during the quarter went up marginally by 2.09 percent to $1,227 million from $1,201.90 million in the previous year period. Gross margin for the quarter expanded 60 basis points over the previous year period to 44.01 percent. Total expenses were 82.14 percent of quarterly revenues, down from 82.34 percent for the same period last year. This has led to an improvement of 20 basis points in operating margin to 17.86 percent.
Operating income for the quarter was $219.10 million, compared with $212.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $225.30 million compared to $215.20 million in the prior year period. At the same time, adjusted operating margin improved 46 basis points in the quarter to 18.36 percent from 17.90 percent in the last year period.
Lawrence E. Kurzius, president and chief executive officer, stated, "We achieved record financial results in 2016, driven by strong growth, great performance and the engagement and efforts of McCormick employees around the world. Our business and strategies are aligned with todays consumer and their increased interest in bolder flavors, demand for convenience, and focus on wellness and fresh ingredients.
Mccormick Company projects revenue to grow in the range of 3 percent to 5 percent for the financial year 2017. For fiscal year 2017, the company projects operating income to grow in the range of 7 percent to 9 percent. For fiscal year 2017, the company projects adjusted operating income to grow in the range of 8 percent to For financial year 2017, the company forecasts diluted earnings per share to be in the range of $4.02 to $4.10. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $4.05 to $4.13 on adjusted basis.
Operating cash flow improvesMccormick Company has generated cash of $658.10 million from operating activities during the year, up 11.54 percent or $68.10 million, when compared with the last year. The company has spent $267.10 million cash to meet investing activities during the year as against cash outgo of $338.90 million in the last year. It has incurred net capital expenditure of $152.10 million on net basis during the year, up 18.83 percent or $24.10 million from year ago.
The company has spent $371.50 million cash to carry out financing activities during the year as against cash outgo of $199.60 million in the last year period.
Cash and cash equivalents stood at $118.40 million as on Nov. 30, 2016, up 5.15 percent or $5.80 million from $112.60 million on Nov. 30, 2015.
Working capital turns negative
Working capital of Mccormick Company has turned negative to $0.90 million on Nov. 30, 2016 from positive $166.30 million on Nov. 30, 2015. Current ratio was at 1 as on Nov. 30, 2016, down from 1.13 on Nov. 30, 2015.
Cash conversion cycle (CCC) was almost stable at 37 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 17 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 50 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding went up to 30 days for the quarter from 28 for the same period last year.
Debt moves up marginally
Mccormick Company has witnessed an increase in total debt over the last one year. It stood at $1,447.20 million as on Nov. 30, 2016, up 3.79 percent or $52.80 million from $1,394.40 million on Nov. 30, 2015. Total debt was 31.22 percent of total assets as on Nov. 30, 2016, compared with 30.93 percent on Nov. 30, 2015. Debt to equity ratio was at 0.88 as on Nov. 30, 2016, up from 0.83 as on Nov. 30, 2015. Interest coverage ratio deteriorated to 15.32 for the quarter from 15.38 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
