November 9, 2020
Lasco Manufacturing Limited (LASM) for the six months ended September 30, 2020, recorded an increase of $276.02 million or 7% in revenue to total $4.12 billion relative to the $3.85 billion recorded for the comparable period in 2019. For the second quarter, total revenue closed at $2.28 billion (2019: $2.06 billion), a 10% rise.
Cost of sales amounted to $2.52 billion (2019: $2.43 billion) for the period, an increase of 4% year on year. As a result, gross profit of $1.60 billion was recorded for the period, 13% more than the $1.42 billion booked in September 2019. For the quarter, gross profit grew by 17% to close at $880.51 million (2019: $754.22 million).
LASM posted other operating loss of $18.18 million, compared to other operating income of $13.91 million reported for the prior year. While for the quarter, other operating losses totaled $15.85 million versus other operating losses of $3.20 million in the previous comparable quarter.
Operating expenses closed the period at $667.84 million compared to $721.99 million booked for the corresponding period last year. While, for the quarter, operating expenses declined by 9% amounting to $356.91 million (2019: $391.80 million).
Consequently, LASM recorded operating profits of $914.65 million, 28% higher than the $714.03 million booked in 2019. Operating profits rose 41% to close the second quarter at $507.76 million relative to $359.21 million in the prior comparable quarter.
Finance costs for the six months declined by 41% to $31.83 million compared to $53.96 million in the prior year’s comparable period. In the second quarter, finance costs also fell by 29% to close the quarter at $15.57 million (2019: $21.91 million).
As such, profit before taxation amounted to $882.82 million, an increase of 34% from the $660.07 million recorded for the previous year. Taxes recorded for the period amounted to $145.35 million (2019: $97.51 million). Thus, net profit for the six months period totalled $737.47 million compared to $562.56 million in 2019, an increase of 31%. While, for the second quarter, net profit closed at $395.66 million (2019: $280.15 million), up by 41%.
Consequently, Earnings per share for the period ended September 30, 2020 amounted to $0.18 relative to $0.14 in 2019. For the quarter, Earnings per share totalled to $0.10 (2019: $0.07). The trailing twelve months EPS amounts to $0.28. The number of shares used in the calculations amounted to 4,130,913,151 units. The stock price closed trading on November 6, 2020 at $3.75.
LASM noted, “Capital Investments were primarily focused on the continued build out of the expansion of the powders manufacturing infrastructure and some technology upgrades of existing lines.”
Balance sheet at a Glance:
Total assets increased 13% year on year, totalling $10.11 billion as at September 30, 2020 (2019: $8.94 billion). The increase in total assets was mainly due to a 250% increase in ‘Cash and Bank balances’ to total $1.41 billion (2019: $401.46 million). ‘Trade and Other Receivables’ also contributed to the growth closing at $2.24 billion (2019: $2.15 billion).
Total shareholders’ equity amounted to $7.24 billion as at September 30, 2020 (2019: $6.21 billion). Consequently, book value per share amounted to $1.75 relative to $1.50 in 2019.
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