February 9, 2022

Lasco Distributors Limited (LASD), for the nine months ended December 31, 2021, posted 14% growth in revenue to $17.37 billion, up from $15.23 billion in the corresponding period in 2020. For the quarter, revenue rose by 12% closing at $5.79 billion (2020: $5.17 billion). The Company highlighted, “While the company focuses on growing its core portfolio, innovation and portfolio expansion will also deliver additional profitable growth. In line with this, in November we launched ELOA, Europe’s leading aloe vera beverage. ELOA is 100% organic and all-natural and represents addition to our core nutrition and health portfolio.”

Cost of sales amounted to $14.45 billion, up 16% on the $12.44 billion reported in the prior comparable period. Within the third quarter, cost of sales went up by 13% to $4.79 billion versus $4.24 billion in the comparable quarter in 2020.

Consequently, gross profit rose by 5% year over year, closing at $2.92 billion compared to the $2.79 billion generated for the same period in the prior year. However, gross profit for the quarter increased 8% totalling $1 billion (2020: $929.56 million).

Other operating income rose by 86% to end the nine months period at $196.59 million relative to $105.68 million in the corresponding period last year. For the quarter, other operating income rose by 352% to $112.57 million (2020: $24.93 million).

Operating expenses of $2.13 billion was booked for the nine months, representing an 6% increase on the $2.02 billion recorded for the comparable period of 2020. Operating expenses rose by 13% for the third quarter amounting to $751.37 million (2020: $662.88 million).

Operating profit rose by 12% to close at $979.18 million for the period under review (2020: $873.81 million). For the quarter, there was a 24% increase operating profit to $362.96 million relative to $291.61 million in the prior comparable quarter in 2020.

Finance cost fell by 58% totalling $1.52 million for the period compared to $3.59 million in the year prior.

Pre-tax profit amounted to $977.66 million, an increase of 12% from the $870.22 million in the previous year. Pre-tax profit saw a 25% increase in the third quarter closing at $362.60 million (2020: $290.72 million).

Net profit for the period closed at $775.20 million (2020: $731.25 million), a 6% increase year over year following taxation of $202.46 million (2020: $138.97 million). As for the third quarter, net profit increased by 18% to $285.90 million (2020: $243.19 million).

Total comprehensive income for the period amounted to $790.45 million (2020: $767.48 million). Whereas total comprehensive income for the quarter ended at $301.13 million, a 8% increase over the $279.42 million reported in the corresponding quarter in 2020.

Earnings per share for the nine months ended December 31, 2021 totaled $0.22 versus $0.21 for the corresponding period in 2020. For the quarter, earnings per share amounted to $0.08 (2020: $0.07). The trailing twelve months EPS is $0.27. 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 8, 2022, at $3.78 with a corresponding P/E ratio of 13.92 times.

Balance Sheet Highlights:

As at December 31, 2021, ‘Total Assets’ amounted to $11.65 billion, 15% more than last year’s $10.17 billion. This was mainly attributed to an 24% increase in ‘Receivables’ which ended the period at $3.47 billion (2020: $2.79 billion).  Inventories also contributed to the overall increase in the asset base with a 25% growth to $4.29 billion (2020: $2.64 billion).

Shareholders equity amounted to $7.03 billion as at December 31, 2021 (2020: $6.30 billion), reflecting an increase of 12%. This translated in book value per share of $2.00 (2020: $1.79).

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