LASD reports 12% increase in year end net profit

May 30, 2022

Lasco Distributors Limited (LASD) posted 15% growth in revenue to $23.34 billion, up from $20.29 billion in the corresponding period in 2021. For the quarter, revenue rose by 18% closing at $5.97 billion (2021: $5.06 billion).

Cost of sales amounted to $19.46 billion, up 17% on the $16.64 billion reported in the prior comparable period. Within the fourth quarter, cost of sales rose 19% to $5.01 billion versus $4.20 billion in the previous quarter in 2021.

Despite this, gross profit recorded an increase of 6% year over year, closing at $3.88 billion compared to the $3.65 billion generated for the same period in the prior year. Likewise, gross profit for the quarter rose 12% totalling $960.64 million (2021: $858.10 million). LASD highlighted, “Margins decreased from 18.0% to 16.6%. Product and freight costs increases were incurred throughout the year and were partially offset by measured price increases and changes to the product and channel mix.”

Other operating income grew by 67% to close the year end at $246.78 million relative to $147.75 million in the corresponding period last year. For the quarter, other operating income closed at $50.20 million versus other operating income of $42.07 million in the same quarter last year.

Operating expenses of $2.86 billion were booked for the year end, this represented a 7% uptick relative to the $2.67 billion recorded for the comparable period of 2021. Of this:

Administrative grew 4% to close at $2.20 billion (2021: $2.13 billion).

Selling and promotional cost closed at $651.18 million (2021: $548.81 million).

Operating profit rose by 13% to close at $1.27 billion (2021: $1.12 billion) for the period under review. For the quarter, there was a surged to $289.98 million relative to the $247.04 million recorded in the prior comparable quarter in 2021.

Finance cost totalled $1.93 million (2021: $4.84 million), while for the quarter, finance costs closed at $406,000 (2021: $1.25 million).

Pre-tax profit amounted to $1.27 billion, a 14% increase from the $1.12 billion reported in the previous year. For the quarter, Pre-tax profit saw a rise to $289.57 million (2021: $245.79 million).

Net profit for the period closed at $1.02 billion (2021: $909.48 million), a 12% increase year over year following taxation of $250.81 million (2021: $206.53 million). As for the quarter, net profit amounted to $241.23 million versus net profit of $178.23 million reported in the previous corresponding quarter.

Total comprehensive income closed the year end at $1.04 billion (2021: $939.72 million).

Earnings per share for the year ended March 31, 2022 totalled $0.29 versus $0.26 for the corresponding period in 2021. For the quarter, earnings per share amounted to $0.07 (2021: $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 27, 2022 at $3.34 with a corresponding P/E ratio of 11.54 times.

LASD noted, “LASCO Distributors Limited delivered another year of profitable growth. The solid performance was the result of disciplined execution of the Company’s strategic framework while adapting the organizational structure to be more competitive and increasing investment in our brands.”


Balance Sheet Highlights:

As at March 31, 2022, ‘Total Assets’ amounted to $12.45 billion, 15% more than last year’s $10.81 billion. This was due to an increase in ‘Receivables’ and ‘Inventories’ which closed at $3.95 billion (2021: $3.23 billion) and $3.79 billion (2021: $2.91 billion).

Shareholders’ equity amounted to $7.29 billion as at March 2022 (2021: $6.47 billion), reflecting a 13% increase. This translated in a book value per share of $2.08 (2021: $1.84).


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