Multi-Color Corporation announce its second quarter 2014 results. Net revenues increased 22% to $203.1 million from $166.8 million in the prior year. Acquisitions occurring after the beginning of fiscal 2014 account for 20% of the increase or $33.2 million. Organic revenues increased 3% in volume, offset by a 1% decrease due to the unfavorable impact of sales mix and pricing.
Gross profit increased $12.4 million or 41% compared to the prior year. Acquisitions occurring after the beginning of fiscal 2014 contributed $7.5 million to the increase. Gross margins increased to 21% of sales revenues primarily due to improved operating efficiencies in North America and South America and a strong contribution from acquisitions occurring after the beginning of fiscal 2014. Prior year gross margins at 18% were impacted by unusually high costs related to press transfers and installations and charges for inventory write-offs.
“June quarter represents the first quarter with full contributions from all FY14 acquisitions and with no significant one-off integration costs. Improved gross margins at 21% drove core operating income to 13% of revenues and core EBITDA to 18% of revenues for the quarter. We remain focused on increasing organic growth and continuing to improve execution in existing businesses this calendar year,” said Nigel Vinecombe, president and CEO of Multi-Color Corporation.
Operating income increased 62% to $26.1 million from $16.1 million in the prior year. Core operating income increased $8.8 million or 51% compared to the prior year primarily due to improved operating performance in North America and South America and recent acquisitions. Acquisitions occurring after the beginning of fiscal 2014 contributed $5.1 million to the increase. Non-core items related to acquisition and integration expenses.
The company had $466.7 million of debt at June 30, 2014 compared to $400.9 million at June 30, 2013. Net income increased to $13.3 million from $6.7 million in the prior year.