Date: November 08, 2018
Lasco Manufacturing Limited (LASM) for the six months ended September 30, 2018 recorded an increase of $302.01 million or 9% in revenue to total $3.80 billion relative to the $3.50 billion recorded for the comparable period in 2017. For the second quarter, total revenue closed at $2.07 billion (2017: $1.99 billion), a 4% growth. The Company highlighted that, “this increase was driven by growth in sales volume.”
Cost of sales amounted to $2.47 billion (2017: $2.39 billion) for the period, an increase of 3% year on year. As a result, gross profit of $1.32 billion was recorded for the period, 20% more than the $1.10 billion booked in September 2017. For the quarter, gross profit grew by 15% to close at $716.08 million (2017: $624.07 million).
LASM posted other losses of $4.47 million, compared to an other income of $18.33 million reported for the prior year. While for the quarter, other losses totaled $7.44 million versus an income $4.57 million in the previous comparable quarter.
Operating expenses closed the period at $651.86 million compared to $669.71 million booked for the corresponding period last year. While, for the quarter, operating expenses fell by 5% amounting to $344.29 million (2017: $361.34 million).
Consequently, LASM recorded operating profits of $667.18 million, 48% higher than the $450.91 million booked in 2017. Operating profits jumped 36% to close the second quarter at $364.35 million relative to $267.30 million in the prior comparable quarter.
Finance costs for the six months declined by 3% to $63.68 million compared to $65.50 million in the prior year’s comparable period. In the second quarter, finance costs also fell, declining by 8% to close the quarter at $32.46 million (2017: $35.43 million).
As such, profit before taxation amounted to $603.50 million, an increase of 57% from the $385.41 million recorded for the previous year. Taxes recorded for the period amounted to $100.44 million (2017: $48.18 million). Thus, net profit for the six months period totaled $503.06 million compared to $337.23 million in 2017, an increase of 49%. While, for the second quarter, net profit closed at $265.40 million (2017: $202.95 million), up by 31%.
Consequently, Earnings per share for the period ended September 30, 2018 amounted to $0.12 relative to $0.08 in 2017. For the quarter, Earnings per share totaled to $0.06 (2017: $0.05). The twelve months trailing EPS amounts to $0.18. The number of shares used in the calculations amounted to 4,091,163,151 units. The stock price closed trading on November 08, 2018 at $3.23.
LASM mentioned that, “Capital Investments were primarily focused on the continued build out of our new 65,000 square feet warehousing facility which is scheduled for completion in October 2018.”
Balance sheet at a Glance:
Total assets increased 13% year on year, totaling $8.66 billion as at September 30, 2018 (2017: $7.65 billion). The increase in total assets over the period was mainly due to a $404.78 million or 95% increase in ‘Capital Work in Progress’ to total of $829.72 million (2017: $424.94 million) and a 44% increase in ‘Trade and other receivables’ to total $2.53 billion (2017: $1.76 billion).
Total shareholders’ equity amounted to $5.27 billion as at September 30, 2018 (2017: $4.65 billion). Consequently, book value per share amounted to $1.29 relative to $1.14 in 2017.
Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
