May 31, 2021

Lasco Distributors Limited (LASD) posted 4% growth in revenue to $20.29 billion, up from $19.50 billion in the corresponding period in 2020. For the quarter, revenue fell by 3% closing at $5.06 billion (2020: $5.20 billion).

Cost of sales amounted to $16.64 billion, up 6% on the $15.72 billion reported in the prior comparable period. Within the fourth quarter, cost of sales fell 1% to $4.20 billion versus $4.24 billion in the previous quarter in 2020.

Consequently, gross profit recorded a decline of 3% year over year, closing at $3.65 billion compared to the $3.78 billion generated for the same period in the prior year. Likewise, gross profit for the quarter fell 10% totalling $858.10 million (2020: $957.52 million). LASD highlighted, “ The margin reduction reflects increased temporary trade spend and discounts, and the underperformance of categories associated with out of home and on-the-go consumption such as schools, events and within the hospitality industry.”

Other operating income grew by 13% to close the year end at $147.75 million relative to $130.33 million in the corresponding period last year. For the quarter, other operating income closed at $42.07 million versus other operating income of $59.60 million in the same quarter last year.

Operating expenses of $2.67 billion were booked for the year end, this represented a 13% decline relative to the $3.07 billion recorded for the comparable period of 2020. Of this:

Administrative fell 8% to close at $2.13 billion (2020: $2.37 billion).

Selling and promotional cost closed at $548.81 million (2020: $702.85 million).

Operating profit rose by 34% to close at $1.12 billion (2020: $833.47 million) for the period under review. For the quarter, there was a surged to $247.04 million relative to the $203.20 million recorded in the prior comparable quarter in 2020.

Finance cost totalled $4.84 million (2020: $15.20 million), while for the quarter, finance costs closed at $1.25 million (2020: $2.65 million).

Pre-tax profit amounted to $1.12 billion, a 36% increase from the $818.27 million reported in the previous year. For the quarter, Pre-tax profit saw a rise to $245.79 million (2020: $200.55 million).

Net profit for the period closed at $909.48 million (2020: $725.76 million), a 25% increase year over year following taxation of $206.53 million (2020: $92.51 million). As for the quarter, net profit amounted to $178.23 million versus net profit of $168.26 million reported in the previous corresponding quarter.

Total comprehensive income closed the year end at $939.72 million (2020: $669.20 million).

Earnings per share for the year ended March 2021, totalled $0.26 versus $0.21 for the corresponding period in 2020. For the quarter, earnings per share amounted to $0.05 (2020: $0.05 ). The total amount of shares outstanding used for this calculation was 3,510,702,702 units. Notably, LASD closed the trading period on May 28, 2021 at $4.18 with a corresponding P/E ratio of 16.14 times.

LASD noted, “The year’s results reflect the remarkable efforts, dedication, and application of the entire Lasco Distributors team under the difficult and ever evolving circumstances of the pandemic.”

Balance Sheet Highlights:

As at March 31, 2021, ‘Total Assets’ amounted to $10.81 billion, 18% more than last year’s $9.16 billion. This was due to an increase in ‘Receivables’ and ‘Inventories’ which closed at $3.23 billion (2020: $2.86 billion) and $2.91 billion (2020: 2.38 billion).

Shareholders’ equity amounted to $6.47 billion as at March 2021 (2020: $5.71 billion), reflecting a 13% increase. This translated in a book value per share of $1.84 (2020: $1.63).

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