LASD reports 28% increase in nine months net profit.

February 08,2018

Lasco Distributors Limited (LASD), for the nine months ended December 31, 2017 reported total revenue of $12.24 billion for the nine months ended December 2017, a 2% or $184.3 million increase when compared with the $12.06 billion reported for the same period in 2016. Total revenues for the quarter amounted to $3.89 billion reflecting a decrease of 0.7% over the $3.91 billion achieved in the corresponding quarter of the previous year.

Cost of sales for the period amounted to $10.05 billion, down marginally by 0.02% when compared to the $10.06 billion booked for the comparable period in the prior . As such, gross profits rose by 9% to close at $2.19 billion compared to the $2 billion for the same period in 2016.

Other operating income for the nine months totaled $69.41 million relative to $58.07 million recorded for the quarter ended December 31, 2016.

Total expenses for the nine months rose 5% to close at $1.67 billion relative to the $1.59 billion booked in 2016. According to Lasco, “in the company’s continuous efforts to drive efficiency in its operations, management implemented several measures, including improved capacity utilization due to the warehouse expansion as well as improved logistics, resulting in increased profit margins. Management continues to control administrative expenses while investing in our core brands and new innovations through various marketing and promotion initiatives. For the period ending December 31, 2017, the administrative expense to sales ratio stood at 13.6% compared to the 13.2% for the corresponding period of 2016.” As such, profit from operations grew 26% to close the period at $586.12 million compared to the $466.49 million posted for the previous year.

Finance cost for the period decreased 80% to end the period at $354,000 compared to the $1.78 million booked for the comparable period in 2016.

Profit before taxation amounted to $585.77 million, relative to $464.72 million reported in 2016, a 26% increase year over year. Taxation for the period amounted to $50.55 million (2016: $47.28 million). consequently, net profit for the nine months rose 28% to close at $535.22 million relative to $417.44 million reported for the comparable period in 2016. Net profit for the quarter amounted to $126.72 million, a 247% surge from the $36.53 million reported for the same quarter of 2016.

Earnings per share (EPS) for the quarter amounted to $0.04 (2016: $0.011), while the EPS for the nine months amounted to $0.15 (2016: $0.12). The twelve-month trailing EPS amounted to $0.21. The number of shares used in our calculations is 3,473,109,698. Notably, LASD’s stock price closed the trading period on February 7, 2018 at $4.46.

LASD indicated, “the company rolled out the newest flavour in its LASCO Instant Chocolate range and iCool brand. LASCO Instant Chocolate with Mint was introduced to the trade in December 2017. The company also extended the range of its iCool brand with the introduction of its newest flavour Guava Pine. Both products have gain significant traction with excellent consumer reviews. In the coming months, the company will expand its portfolio of product offerings to our consumers.”

Balance sheet at a glance:

As December 31, 2017, LASD assets totalled $8.10 billion, $1.01 billion more than the $7.10 billion recorded last year for the same period.  The increase in total assets was largely due to increases in ‘property, plant and equipment’ and ‘receivables’ by $257.6 million and $285.86 million to close at $1.45 billion (2016: $1.19 billion) and $2.61 billion (2016: $2.32 billion) respectively. LASD indicated the increase in the asset base was due to, “investment in warehouse expansion and upgrades to our ERP system.”

Shareholder’s equity closed at $4.49 billion (2016: $3.84 billion), resulting in  a book value per share was $1.29 (2016: $1.11).


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