June 1, 2020
Lasco Distributors Limited (LASD) posted 8% growth in revenue to $19.50 billion, up from $18.13 billion in the corresponding period in 2019. For the quarter, revenue increased by 8% closing at $5.20 billion (2019: $4.80 billion). LASD highlighted, “ During the year, we launched our reduced sugar ICOOL beverage line in four flavours and an ICOOL flavoured water which performed quite well. We expect these innovations along with our existing products, will continue to deliver strong growth.”
Cost of sales amounted to $15.72 billion, up 8% on the $14.58 billion reported in the prior comparable period. Within the fourth quarter, cost of sales went up 9% to $4.24 billion versus $3.88 billion in the previous quarter in 2019.
Consequently, gross profit recorded an increase of 6% year over year, closing at $3.78 billion compared to the $3.55 billion generated for the same period in the prior year. However, gross profit for the quarter climbed 4% totalling $957.52 million (2019: $922.61 million).
Other operating income fell by 4% to close the year end at $130.33 million relative to $136.01 million in the corresponding period last year. For the quarter, other operating income closed at $59.60 million versus other operating loss of $37.31 million in the same quarter last year.
Operating expenses of $3.07 billion were booked for the year end, a growth of 3% on $2.98 billion recorded for the comparable period of 2019. Of this:
Administrative cost went up 8% to close at $2.37 billion (2019: $2.20 billion).
Selling and promotional cost closed at $702.85 million (2019: $775.78 million).
LASD noted that this increase is due to, “ the impact of foreign exchange losses, restructuring expenses and legal fees associated with ongoing matters relating to the Pfizer case. We continue to invest in our route to market build out to manage our expanding business.”
Operating profit rose by 18% to close at $833.47 million (2019: $705.86 million) for the period under review. For the quarter, there was a surged to $203.20 million relative to $37.47 million recorded in the prior comparable quarter in 2019.
Finance cost totalled $15.20 million (2019: $13.92), while for the quarter, finance costs closed at $2.65 million (2019: $13.44 million).
Pre-tax profit amounted to $818.27 million, a 18% increase from the $691.94 million reported in the previous year. For the quarter, Pre-tax profit saw a rise to $200.55 million (2019: $24.02 million).
Net profit for the period closed at $725.76 million (2019: $597.78 million), a 21% increase year over year following taxation of $92.51 million (2019: $94.16 million). As for the quarter, net profit amounted to $168.26 versus net loss of $23.07 million reported in the previous corresponding quarter.
Total comprehensive income closed the year end at $669.20 million (2019: $610.61 million).
Earnings per share for the year ended March 2020, totalled $0.21 versus $0.17 for the corresponding period in 2019. For the quarter, earnings per share amounted to $0.05 (2019: LPS of $0.01 ). The total amount of shares outstanding used for this calculation was 3,507,924,959 units. Notably, LASD closed the trading period on June 1, 2020 at $4.56.
LASD noted, “ The company delivered solid top-line growth, invested in capital projects for the future and commenced its restricting exercise in service of accelerating future growth throughout the 2020/21 financial year.
Balance sheet at a glance:
As at March 31, 2020, ‘Total Assets’ amounted to $9.16 billion, 6% more than last year’s $8.64 billion. This was due to an increase in ‘Receivables’ and ‘Financial assets as fair value through other comprehensive income’ which closed at $2.86 billion (2019: $2.57 billion) and $281 million (2019: 53.77 million). ‘Property, Plant and Equipment’ contributed to the increase totaling $1.92 billion (2019: $1.83 billion).
Shareholders’ equity amounted to $5.71 billion as at March 2020 (2019: $5.19 billion), reflecting a 10% increase. This translated in a book value per share of $1.63 (2019: $1.48).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
