Molson Coors Brewing Co (TAP) has reported a 23.72 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $201.30 million, or $0.93 a share in the quarter, compared with $162.70 million, or $0.80 a share for the same period last year. Revenue during the quarter surged 272.60 percent to $2,448.70 million from $657.20 million in the previous year period. Gross margin for the quarter expanded 693 basis points over the previous year period to 43.93 percent. Total expenses were 84.92 percent of quarterly revenues, up from 62.98 percent for the same period last year. That has resulted in a contraction of 2194 basis points in operating margin to 15.08 percent.
Operating income for the quarter was $369.20 million, compared with $243.30 million in the previous year period.
Molson Coors president and chief executive officer Mark Hunter said, "With the completion of the MillerCoors transaction late last year and the changes we are making to align and enhance our organization, 2017 will be a transition year as we build a larger, stronger First Choice-focused company. Consistent with this, our results today reflect increased investments in the building blocks that will drive top-line growth, cost savings, profit growth, cash generation, debt pay-down, and total shareholder returns in the years ahead."
Operating cash flow remains negative
Molson Coors Brewing Co has spent $118.30 million cash to meet operating activities during the quarter as against cash outgo of $88.30 million in the last year period. The company has spent $132.10 million cash to meet investing activities during the quarter as against cash outgo of $205.50 million in the last year period. It has incurred capital expenditure of $138 million on net basis during the quarter, up 100.87 percent or $69.30 million from year ago period.
Cash flow from financing activities was $80.30 million for the quarter, down 96.73 percent or $2,378.20 million, when compared with the last year period.
Cash and cash equivalents stood at $395 million as on Mar. 31, 2017, down 84.82 percent or $2,207.90 million from $2,602.90 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Molson Coors Brewing Co has turned negative to $769.50 million on Mar. 31, 2017 from positive $2,540.90 million on Mar. 31, 2016. Current ratio was at 0.75 as on Mar. 31, 2017, down from 3.08 on Mar. 31, 2016.
Days sales outstanding went down to 27 days for the quarter compared with 101 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the quarter compared with 45 days for the previous year period.
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