LASM reports 16% increase in nine months net profit

February 10, 2023

Lasco Manufacturing Limited (LASM)

Financials for the nine months ended December 31, 2022:

Lasco Manufacturing Limited (LASM) for the nine months ended December 31, 2022, recorded an 18% increase in revenue to total $8.33 billion relative to the $7.05 billion recorded for the comparable period in 2021. For the third quarter, total revenue closed at $2.86 billion (2021: $2.40 billion), a 19% rise year over year.

Cost of sales amounted to $5.28 billion (2021: $4.42 billion) for the period, an increase of 19% year on year. As a result, gross profit of $3.05 billion was recorded for the period, 16% more than the $2.63 billion booked in December 2021. For the quarter, gross profit increase by 17% to close at $1.08 billion (2021: $919.99 million). LASM noted, “the gross margin for the three months was 37% comparable to the same period last year.”

LASM posted other operating losses of $35.05 million, compared to other operating income of $67.38 million reported for the prior year. For the quarter, other operating loss totaled $11.36 million in contrast to other operating income of $16.40 million in the previous comparable quarter.

Operating expenses closed the period at $1.04 billion compared to $950.24 million booked for the corresponding period last year. Operating expenses for Q3 increased by 8% to $352.77 million (2021: $327.35 million).

Consequently, LASM recorded operating profit of $1.97 billion, 13% higher than the $1.75 billion booked in 2021. Q3 operating profit increased 17% to $715.12 million relative to $609.05 million in the prior comparable quarter.

Finance costs for the nine months declined by 51% to $19.83 million compared to $40.40 million in the prior year’s comparable period. In the third quarter, finance costs declined 56% to $5.03 million (2021: $11.32 million).

As such, profit before taxation amounted to $1.95 billion, an increase of 14% from the $1.71 billion recorded for the previous year. Taxes recorded for the period amounted to $583.10 million (2021: $521.45 million). As a result, net profit for the nine month period totaled $1.37 billion compared to $1.19 billion in 2021, an increase of 16% year over year. While, for the third quarter, net profit closed at $487.57 million (2021: $403.29 million), up by 21%.

Consequently, Earnings per share for the period ended December 31, 2022 amounted to $0.33 relative to $0.29 in 2021. For the quarter, Earnings per share totaled to $0.12 (2021: $0.10). The trailing twelve months EPS amounts to $0.46. The number of shares used in the calculations amounted to 4,132,913,151 units. The stock price closed trading on February 9, 2022 at $4.29 with a corresponding P/E of 9.37 times.

Balance sheet at a Glance:

Total assets increased 12% year on year, totalling $12.99 billion as at December 31, 2022 (2021: $11.64 billion). The increase in total assets was mainly due to a 329% increase in ‘Short-term investments’ to total $1.62 billion (2021: $376.48 million). ‘Long term investments’ and ‘Inventories’ also contributed to the growth closing at $644.92 million (2021: $221.03 million) and $1.99 billion (2021: 1.58 billion), respectively.

Total shareholders’ equity amounted to $10.40 billion as at December 31, 2022 (2021: $8.80 billion). Consequently, book value per share amounted to $2.52 relative to $2.13 in 2021.



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