February 08, 2021
Lasco Distributors Limited (LASD), for the nine months ended December 31, 2020, posted 6% growth in revenue to $15.23 billion, up from $14.30 billion in the corresponding period in 2019. For the quarter, revenue also increased by 6% closing at $5.17 billion (2019: $4.90 billion).
Cost of sales amounted to $12.44 billion, up 8% on the $11.48 billion reported in the prior comparable period. Within the third quarter, cost of sales went up by 7% to $4.24 billion versus $3.97 billion in the comparable quarter in 2019.
Consequently, gross profit fell by 1% year over year, closing at $2.79 billion compared to the $2.82 billion generated for the same period in the prior year. However, gross profit for the quarter increased 1% totalling $929.56 million (2019: $920.77 million).
Other operating income rose by 49% to end the nine months period at $105.68 million relative to $70.73 million in the corresponding period last year. For the quarter, other operating income decreased by 2% to $24.93 million (2019: $25.42 million).
Operating expenses of $2.02 billion was booked for the nine months, representing an 11% decline on $2.26 billion recorded for the comparable period of 2019. Operating expenses fell by 12% for the third quarter amounting to $662.88 million (2019: $755.74 million).
Operating profit rose by 39% to close at $873.81 million for the period under review (2019: $630.27 million). For the quarter, there was a 53% increase operating profit to $291.61 million relative to $190.45 million in the prior comparable quarter in 2019.
Finance cost fell by 71% totalling $3.59 million for the period compared to $12.56 million in the year prior. The Company noted, “Total loans owing at the end of the period was $33 million compared to $113 million in the previous year.”
Pre-tax profit amounted to $870.22 million, an increase of 41% from the $617.71 million in the previous year. Pre-tax profit saw a 55% increase in the third quarter closing at $290.72 million (2019: $187.96 million).
Net profit for the period closed at $731.25 million (2019: $557.50 million), a 31% increase year over year following taxation of $138.97 million (2019: $60.21 million). As for the third quarter, net profit increased by 41% to $243.19 million (2019: $171.92 million).
Total comprehensive income for the period amounted to $767.48 million (2019: $561.08 million). Whereas total comprehensive income for the quarter ended at $279.42. million, a 59% increase over the $175.50 million reported in the corresponding quarter in 2019.
Earnings per share for the nine months ended December 31, 2020 totaled $0.21 versus $0.16 for the corresponding period in 2019. For the quarter, earnings per share amounted to $0.07 (2019: $0.05). The trailing twelve months EPS is $0.26. The total amount of shares outstanding used for this calculation was 3,510,403,292 units. Notably, LASD’s closed the trading period on February 5, 2021, at $3.37 with a corresponding P/E ratio of 13.15 times.
The Company highlighted, “we have so far successfully weathered the impact of the pandemic and has maintained market position through constant monitoring and implementation of strategic measures. The company remain resolute in the fight against the pandemic.”
Balance Sheet Highlights:
As at December 31, 2020, ‘Total Assets’ amounted to $10.17 billion, 7% more than last year’s $9.49 billion. ‘Total Non-Current Assets’ totalled $2.32 billion (2019: $2.21 billion), a 5% increase over the corresponding period last year. This was mainly attributed to an 82% increase in ‘Financial assets at fair value’ which ended at $369.38 million (2019: $202.63 million). Total current assets amounted to $7.85 billion relative to $7.28 billion as at December 31, 2019, due to an 81% increase in ‘Cash and cash equivalent’ which totalled $2.23 billion relative to the $1.23 billion reported twelve months prior.
Shareholders equity amounted to $6.30 billion as at December 31, 2020 (2019: $5.60 billion), reflecting an increase of 12%. This translated in book value per share of $1.79 (2019: $1.60).
Disclaimer:
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