LASM considers strategic partnerships to foster growth

Market News

September 29, 2020

September 29, 2020

James Rawle, Managing Director of LASCO Manufacturing Limited, commented on the financial performance of the Company. Lasco Manufacturing, for the year ended March 31, 2020, total revenue increased by 4% from $7.57 billion in 2019 to $7.89 billion in 2020.Net profit for the year was $983.68 million, 9% lower than last year’s net profit of $1.08 billion. Whereas, for the three months ended June 30, 2020, LASMrecorded an increase of 3% in total revenue to amount to $1.85 billion, (2019: $1.79 billion) which resulted in a 21% increase in net profit for the first quarter of $341.81 million compared to $282.42 million in 2019.

2019 Deliverables:

1. Capital Investments of J$200 million:

TechnologicalUpgrades
Expansion of Powder Operations

2. Marketing Investments (Approximately J$291 million)

Efficiency in Marketing Spend- exploiting all media platforms
Support our Brands (Food Drink & iCool) in both local and export markets
Support four new flavours of reduced Sugar iCool Juice Drink and one additional flavour of Flavoured Water (Gran-Grape) in both local and export markets.

With regards to new product development, Mr. Rawle stated that, “we continue to invest in new product development as well as renovation of existing products and maintain a robust new product development pipeline notwithstanding COVID-19.”

Outlook:

Notably, according to Mr. Rawle, the objectivesfor 2020/21arecontinued growth, improved margins and profits through:

Operational efficiencies and lower structural costs-to deliver lower overall costs and savings
Continued investments in our brands
Continuation of product innovation/ renovation and launch of new products to enter new market segments in both powders and liquids.
Growth in exports-to firmly establish the LASCO brands in the overseas markets
Balanced investments in plant/ equipment processes and technology (digitalization), while continuing to optimize existing infrastructure.
Investments in human resource development- training.
Exploring/ Considering Strategic Partnerships/ Alliances to tap opportunities for growth.

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