November 9, 2020
Lasco Distributors Limited (LASD)
Unaudited Financial Statements for Six Months ended September 30, 2020:
Lasco Distributors Limited (LASD), for the six months ended September 30, 2020, posted 7% growth revenues to $10.06 billion, up from $9.41 billion in the corresponding period in 2019. For the quarter, revenues increased by 6% closing at $5.36 billion (2019: $5.07 billion).
Cost of sales amounted to $8.20 billion, up 9% on the $7.51 billion reported in the prior comparable period. Within the second quarter, cost of sales went up by 9% to $4.40 billion versus $4.03 billion in the previous quarter in 2019.
Consequently, gross profit recorded a decrease of 2% year over year, closing at $1.86 billion compared to the $1.90 billion generated for same period in the prior year. Likewise, gross profit for the quarter fell by 7% totalling $963.31 million (2019: $1.03 billion).
Other operating income rose by 78% to end the six months period at $80.74 million relative to $45.31 million in the corresponding period last year. For the quarter, other operating income was $7.61 million versus an operating loss of $7.35 million in 2019.
Operating Expenses of $1.36 billion was booked for the six months, a reduction of 10% in comparison to the $1.50 billion recorded for the comparable period of 2019. Operating Expenses went down by 9% for the second quarter amounting to $707.25 million (2019: $779.01 million).
Operating profit rose by 32% to close at $582.20 million for the period under review versus $439.82 million recorded twelve months earlier. For the quarter, there was a 7% increase closing at $263.67 million relative to $247.09 million in the prior comparable quarter in 2019.
Finance Cost decreased to $2.70 million for the period compared to $10.06 million booked in the year prior.
Pre-tax Profits amounted to $579.50 million, an increase of 35% from the $429.76 million in the previous year. Pre-tax profits saw an 8% increase in the second quarter closing at $262.47 million (2019: $242.69 million).
Net Profit for the period closed at $488.06 million (2019: $385.58 million), a 27% increase year over year. As for the second quarter, Net Profit rose 4% to $230.04 million (2019: $221.67 million). LASD noted, “Notwithstanding the sever impact of the current global pandemic, LASCO Distributors Limited continues to make progress.” Total Comprehensive Income for the first six months totalled $501.17 million (2019: $400.84 million). While for the quarter, Total Comprehensive Income amounted to $243.15 million (2019: $236.93 million).
Earnings Per Share for the six months ended September 2020 totalled $0.14 versus $0.11 for the corresponding period in 2019. For the quarter, Earnings Per Share amounted to $0.07 (2019: $0.06). The trailing twelve months EPS is $0.24. The total amount of shares outstanding used for this calculation was 3,509,843,292 units. Notably, LASD’s closed the trading period on November 06, 2020, at $3.14.
Management highlighted that, “Covid-19 has reflected how LASCO operates, and the greater emphasis is being placed on risk management, strategic planning and forecasting to sustain our businesses. We continue to explore new and innovative ways to meet the changing demands of our customers, consumers, and communities. Despite the uncertainty of the future, we will continue to provide premier services and products”
Balance Sheet Highlights:
As at September 30,2020, ‘Total Assets’ amounted to $10.21 billion, 10% more than last year’s $9.27 billion. The increase in the asset base was due mainly to increases in ‘Inventories’ which closed at $2.56 billion (2019: $2.49 billion) and ‘Cash and Cash Equivalents’ amounting to $2.33 billion (2019: $1.37 billion).
Shareholders equity amounted to $6.03 billion as at September 30, 2020 (2019: $5.44 billion), reflecting an increase of 11%. This translated in book value per share of $1.72 (2019: $1.55).
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