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Monsanto Co. (NYSE:MON)

This company has been moved to the archive! The financial data has not been updated since April 5, 2018.

Common-Size Income Statement

Monsanto Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -45.79 -48.03 -45.46 -45.92 -48.50 -47.83
Gross profit 54.21% 51.97% 54.54% 54.08% 51.50% 52.17%
Selling, general and administrative expenses -20.28 -20.98 -17.91 -17.50 -17.16 -17.70
Research and development expenses -10.98 -11.20 -10.53 -10.88 -10.32 -11.23
Restructuring charges 0.25 -2.20 -2.62 0.00 0.00 0.07
Pending Bayer transaction related costs -1.26 0.00 0.00 0.00 0.00 0.00
Operating expenses -32.27% -34.38% -31.06% -28.38% -27.47% -28.86%
Income from operations 21.94% 17.59% 23.49% 25.70% 24.02% 23.31%
Interest expense -3.09 -3.23 -2.89 -1.56 -1.16 -1.41
Interest income 0.52 0.55 0.70 0.64 0.62 0.57
Other income (expense), net 0.34 -0.16 -0.23 -0.64 -0.41 -0.34
Income from continuing operations before income taxes 19.71% 14.75% 21.07% 24.14% 23.07% 22.13%
Income tax provision -4.28 -5.15 -5.76 -6.80 -6.16 -6.67
Income from continuing operations including portion attributable to noncontrolling interest 15.44% 9.60% 15.31% 17.34% 16.92% 15.45%
Income on discontinued operations 0.09 0.13 0.19 0.08 0.07 0.04
Net income 15.53% 9.72% 15.50% 17.42% 16.99% 15.50%
Net (income) loss attributable to noncontrolling interest -0.09 0.17 -0.07 -0.14 -0.29 -0.36
Net income attributable to Monsanto Company 15.44% 9.89% 15.43% 17.28% 16.70% 15.14%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

The financial performance from 2012 to 2017 is characterized by consistent gross profit margins and significant volatility in operating expenses and net income, particularly in the latter years of the period.

Gross Profitability
Gross profit margins remained relatively stable, fluctuating between a low of 51.50% in 2013 and a high of 54.54% in 2015. The cost of goods sold consistently ranged from 45.46% to 48.50% of net sales, indicating a stable direct cost structure over the six-year period.
Operating Expense Trends
Selling, general, and administrative expenses showed a marked increase toward the end of the period, rising from 17.70% in 2012 to a peak of 20.98% in 2016. Research and development expenditures remained consistent, averaging approximately 10.8% of net sales annually. Operating efficiency was further impacted by restructuring charges and transaction-related costs, which became prominent between 2015 and 2017, including costs associated with the Bayer transaction in 2017.
Operating Income Performance
Income from operations exhibited a downward trend peaking in 2014 at 25.70% before declining sharply to 17.59% in 2016. This contraction is primarily attributed to the rise in SG&A expenses and the emergence of restructuring charges. A partial recovery was observed in 2017, with the operating margin returning to 21.94%.
Financial Costs and Tax Provisions
Interest expenses as a percentage of net sales more than doubled from 1.41% in 2012 to 3.23% in 2016, suggesting an increase in leverage or financing costs. Conversely, the income tax provision showed a gradual decline from 6.67% in 2012 to 4.28% in 2017, which provided some mitigation against falling operating incomes.
Net Income Margin
Net income attributable to the company peaked in 2014 at 17.28% of net sales. A significant contraction occurred in 2016, where the margin dropped to 9.89%, the lowest point in the analyzed period. By 2017, the net income margin rebounded to 15.44%, aligning closely with the levels observed at the start of the period in 2012.

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