NEWELL BRANDS (NWL) has reported 1,154.55 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $165.60 million, or $0.34 a share in the quarter, compared with $13.20 million, or $0.05 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $389.90 million, or $0.80 a share compared with $151.10 million or $0.56 a share, a year ago.
Revenue during the quarter surged 164.99 percent to $4,135.90 million from $1,560.80 million in the previous year period. Gross margin for the quarter contracted 145 basis points over the previous year period to 36.82 percent. Total expenses were 87.59 percent of quarterly revenues, down from 93.47 percent for the same period last year. This has led to an improvement of 588 basis points in operating margin to 12.41 percent.
Operating income for the quarter was $513.10 million, compared with $101.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $676.10 million compared to $214.20 million in the prior year period. At the same time, adjusted operating margin improved 262 basis points in the quarter to 16.35 percent from 13.72 percent in the last year period.
"Our fourth quarter results reflect continued strong progress in the company’s transformation," said Newell Brands chief executive officer Michael Polk. "We delivered over 40 percent earnings per share growth and nearly $1 billion of operating cash flow, driven by accelerating cost savings from synergies and Project Renewal. Despite significant portfolio and organization change in the quarter, core sales growth was competitive led by very good growth on Writing, Baby, Beverages, Waddington, Fishing, Team Sports and Technical Apparel. We delivered this outcome in the context of challenging mall-based retail conditions driven by accelerating bricks-to-clicks shopper migration during the holidays.
For financial year 2017, NEWELL BRANDS expects revenue to be in the range of $14,520 million to $14,720 million. The company projects diluted earnings per share to be in the range of $2.95 to $3.15 on adjusted basis.
Operating cash flow improves significantlyNEWELL BRANDS has generated cash of $1,828.50 million from operating activities during the year, up 223.17 percent or $1,262.70 million, when compared with the last year. The company has spent $8,824.80 million cash to meet investing activities during the year as against cash outgo of $649.90 million in the last year.
Cash flow from financing activities was $7,340.40 million for the year, up 4,160.24 percent or $7,168.10 million, when compared with the last year.
Cash and cash equivalents stood at $587.50 million as on Dec. 31, 2016, up 113.79 percent or $312.70 million from $274.80 million on Dec. 31, 2015.
Working capital increases sharply
NEWELL BRANDS has recorded an increase in the working capital over the last year. It stood at $3,192.50 million as at Dec. 31, 2016, up 532.30 percent or $2,687.60 million from $504.90 million on Dec. 31, 2015. Current ratio was at 1.74 as on Dec. 31, 2016, up from 1.25 on Dec. 31, 2015.
Cash conversion cycle (CCC) was almost stable at 41 days for the quarter, when compared with the last year period. Days sales outstanding went down to 31 days for the quarter compared with 37 days for the same period last year.
Days inventory outstanding has increased to 37 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 31 for the same period last year.
Debt increases substantiallyNEWELL BRANDS has witnessed an increase in total debt over the last one year. It stood at $11,892.80 million as on Dec. 31, 2016, up 288.92 percent or $8,834.90 million from $3,057.90 million on Dec. 31, 2015. Total debt was 35.08 percent of total assets as on Dec. 31, 2016, compared with 42.02 percent on Dec. 31, 2015. Debt to equity ratio was at 1.04 as on Dec. 31, 2016, down from 1.67 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
