Mondelez International (MDLZ) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $93 million, or $ 0.06 a share in the quarter, against a net loss of $729 million, or $0.45 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $726 million, or $0.47 a share compared with $677 million or $0.42 a share, a year ago.
Revenue during the quarter dropped 8.07 percent to $6,770 million from $7,364 million in the previous year period. Gross margin for the quarter contracted 26 basis points over the previous year period to 38.24 percent. Operating margin for the quarter period stood at positive 7.49 percent as compared to a negative 7.56 percent for the previous year period.
Operating income for the quarter was $507 million, compared with an operating loss of $557 million in the previous year period.
However, the adjusted operating income for the quarter stood at $973 million compared to $925 million in the prior year period. At the same time, adjusted operating margin improved 181 basis points in the quarter to 14.37 percent from 12.56 percent in the last year period.
"We continue to make solid progress toward our near-term margin targets, while investing for long-term growth," said Irene Rosenfeld, chairman and chief executive officer. "Despite significant economic disruptions, political uncertainties and slower global category growth, we remain confident in and committed to our balanced strategy for both top- and bottom-line growth. Throughout the year, we continued to sharpen the focus of our portfolio, increase Power Brand investments and modernize our supply chain. These actions, together with our excellent cost discipline, position us well to deliver strong operating leverage that will drive sustainable value creation for our shareholders."
For financial year 2017, Mondelez International projects revenue to grow at 1 percent. The company forecasts adjusted operating income to grow at 16 percent, the company forecasts diluted earnings per share to be $0.03 on adjusted basis.
Operating cash flow declinesMondelez International has generated cash of $2,838 million from operating activities during the year, down 23.87 percent or $890 million, when compared with the last year. The company has spent $1,029 million cash to meet investing activities during the year as against cash inflow of $2,649 million in the last year.
The company has spent $1,862 million cash to carry out financing activities during the year as against cash outgo of $5,883 million in the last year period.
Cash and cash equivalents stood at $1,741 million as on Dec. 31, 2016, down 6.90 percent or $129 million from $1,870 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Mondelez International was negative $5,937 million on Dec. 31, 2016 compared with negative $1,964 million on Dec. 31, 2015. Current ratio was at 0.59 as on Dec. 31, 2016, down from 0.82 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 8 days for the quarter from 1 days for the last year period. Days sales outstanding were almost stable at 24 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 27 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 59 days for the quarter from 50 for the same period last year.
Debt moves upMondelez International has witnessed an increase in total debt over the last one year. It stood at $17,199 million as on Dec. 31, 2016, up 11.70 percent or $1,801 million from $15,398 million on Dec. 31, 2015. Total debt was 27.95 percent of total assets as on Dec. 31, 2016, compared with 24.50 percent on Dec. 31, 2015. Debt to equity ratio was at 0.68 as on Dec. 31, 2016, up from 0.55 as on Dec. 31, 2015. 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
