LASM Reports a 14% Decline Year End Net Profit

LASM Reports a 14% Decline Year End Net Profit

Lasco Manufacturing Limited (LASM) for the year ended March 31, 2017: recorded total revenue increased by $379.89 million or 6% to total $6.95 billion, relative to the $6.57 billion recorded for the comparable period in 2016. Notably, for the fourth quarter the company posted a 12% decline in revenues year over year to $1.54 billion (2016: $1.74 billion).

Cost of sales amounted to $4.39 billion (2016: $4.19 billion) for the year, an increase of 5% year on year. As a result, gross profit of $2.56 billion was recorded for the period, 7% more than the $2.38 billion booked for the year ended March 31, 2016. Gross profit for the quarter totaled $733.51 million relative to $789.85 million for the comparable quarter in 2016.

LASM posted other income of $1.66 million relative to $3.01 million for the prior year.

Operating expenses increased approximately 20% to close the year at $1.49 billion versus to $1.25 billion booked last year. Of this, administrative expenses rose 5% to $1.16 billion (2016: $1.16 billion), while selling and promotion expenses surged 131% to close at $330.42 million (2016: $142.95 million). According to the company, “this was due to a significant increase in marketing and promotional investments to support the brands in the local market including launch support for several new products, as well as marketing support to complement the export thrust in Caricom Markets.” Expenses within the quarter climbed 4% to $572.80 million compared to $551.40 million in 2016.

Consequently, LASM recorded operating profits of $1.07 billion, 6% lower than the $1.14 billion booked in 2016.

Finance costs for the year rose marginally to $157.82 million compared to $157.22 million in the prior year.

As such, profit before taxation amounted to $910.85 million, a decrease of 7% from the $983.30 million recorded for the previous year. Taxes recorded for the period amounted to $203.59 million compared to $157.10 million incurred for the corresponding period in 2016. As such Net Profit for the financial year totaled $707.25 million compared to $826.20 million in 2016, a contraction of 14%. Net profit for the quarter reflected 93% decline to $7 million relative to $97.46 million.

Consequently, earnings per share for the year ended March 31, 2017 amounted to$0.17 relative to $0.20 in 2016. The earnings per share for the fourth quarter totaled $0.002 (2016: $0.024). The number of shares used in the calculations amounted to 4,087,130,170 units.

LASM stated, “during the year the company launched a number of new products including Nutrify, a high protein meal replacement product, new iCool flavours and formats, and a hydration sports drink iDrade.”

Balance sheet at a Glance:

Total assets increased 3% year on year, totaling $7.08 billion (2016: $6.86 billion) as at March 31, 2017. The increase in total assets over the period was mainly due to a $1.05 billion increase in ‘Property, Plant & Equipment’ to a total of 4.57 billion (2016: $3.52 billion).

Total shareholder equity amounted to $4.44 billion as at March 31, 2017 (2016: $3.86 billion). Consequently, book value per share amounted to $1.09 relative to $0.94 in 2016.

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2017-06-10T17:04:34+00:00