November 10, 2023
LASCO Distributors Limited (LASD) for the six months ended September 30, 2023, reported a 13% increase in revenue totalling $14.54 billion compared to $12.86 billion in the corresponding period last year. Revenue for the second quarter had a 9% increase to close at $7.23 billion compared to $6.60 billion for the comparable quarter of 2022. Management noted that, “this performance builds on the previous year’s results, achieving growth across all key categories. The company continues to increase its marketing activities while expanding its distribution capabilities.”
Cost of sales amounted to $11.91 billion (2022: $10.64 billion), this represents an increase of 12% year over year. Consequently, gross profit increased by 19% to $2.64 billion compared to $2.22 billion for the six months ended September 30, 2022. The Company booked gross profit of $1.30 billion for the second quarter versus $1.15 billion reported for the similar quarter of 2022.
Other operating income for the six months increased 60% to $112.13 million (2022: $70.11 million), while operating expenses amounted to $1.75 billion, a 12% increase relative to $1.57 billion reported in 2022. The movement in expenses was driven by an increase in Sales, Promotional and Marketing investments and increased insurance premiums.
Profit from operations for the six months ended September 30, 2023, amounted to $997.29 million, a 39% increase relative to $719.54 million reported in 2022. Profit from operations for the second quarter amounted to $395.19 million (2022: $336.98 million). Finance costs totalled $251,000, an 81% decrease from the corresponding period last year (2022: $1.32 million).
Profit before taxation for the six months ended September 30, 2023, amounted to $997.04 million, a 39% increase relative to $718.23 million reported in 2022. Profit before taxation for the second quarter amounted to 395.06 million (2022: $335.86 million).
Taxation for the six months had a 56% increase to reach $204.31 million (2022: $131.09 million). As a result, net profit for the six months amounted to $792.73 million, a 35% increase from the $587.14 million reported in 2022. For the second quarter, net profit was $345.15 million (2022: $262.25 million).
Total comprehensive income for the six months ended September 30, 2023, amounted to $796.73 million, a 28% increase relative to $620.60 million reported in 2022. Total comprehensive income for the second quarter amounted to 349.15 million (2022: $295.71 million).
Earnings per share (EPS) for the six months amounted to $0.22 (2022: 0.17), while EPS for the quarter totalled $0.10 (2022: $0.07). The twelve-month trailing EPS was $0.44, and the number of shares used in these calculations was 3,525,702,702.
Notably, LASD’s stock price closed the trading period on November 9, 2023, at a price of $4.31 with a corresponding P/E ratio of 9.75x.
Balance Sheet Highlights:
The company’s assets totalled $14.45 billion; an 8% increase relative to $13.41 billion booked in 2022. This upward movement was largely due to receivables, which amounted to $4.87 billion (2022: $4.18 billion), followed by a 24% increase in cash and cash equivalent, which amounted to $2.66 billion (2022: $2.15 billion).
Shareholder’s equity was $8.86 billion (2022: $7.59 billion), representing a book value per share of $2.51 (2022: $2.15).
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.
