February 10, 2022
Lasco Manufacturing Limited (LASM) for the nine months ended December 31, 2021, reported total revenue of $7.05 billion compared to $6.19 billion in 2020. Revenue increased $329.18 million or 16% to a total of $2.40 billion in the third quarter, relative to the $2.07 billion recorded for the comparable quarter in 2020.
Cost of sales amounted to $4.42 billion (2020: $3.84 billion) for the period, an increase of 15% year on year. While, for the third quarter cost of sales was recorded at $1.48 billion in 2021 relative to $1.31 billion in 2020, a 12% increase.
As a result, gross profit of $2.63 billion was recorded for the period, 12% more than the $2.35 billion booked for the corresponding period in 2020. Gross profit for the third quarter increased by 22% to $919.99 million when compared to the $754.20 million booked for the quarter ended December 31, 2020.
LASM posted other income of $67.38 million relative to other loss of $28 million for the prior corresponding period. While for the quarter, other income of $16.40 million was booked versus other loss of $9.83 million in the similar period last quarter.
Operating expenses decreased 3% to close the period at $950.24 million versus $982.81 million booked for the corresponding period last year. Expenses for the quarter increased by 4% to close at $327.35 million (2020: $314.97 million).
Consequently, LASM recorded operating profit of $1.75 billion, 30% higher than the $1.34 billion booked in 2020.
Finance costs for the period fell 13% to $40.40 million compared to $46.38 million in the prior year’s comparable period.
As such, profit before taxation amounted to $1.71 billion, an increase of 32% from the $1.30 billion recorded for the previous corresponding period. Taxes recorded for the period amounted to $521.45 million compared to $279.07 million incurred for the corresponding period in 2020. For the third quarter, profit before tax increased $182.87 million or 44% to $597.72 million (2020: $414.86 million).
Net profit for the nine months totaled $1.19 billion, a 16% increase when compared to $1.02 billion in 2020, while for the quarter net profit totaled $403.29 million (2020: $281.14 million).
Consequently, earnings per share (EPS) for the period amounted to $0.29 relative to $0.25 in 2020. The EPS for the quarter amounted to $0.10 relative to $0.07 reported for 2020. The twelve months trailing EPS amounted to $0.37. The number of shares used in the calculations amounted to 4,132,913,151 units. LASM closed the trading period on February 10, 2022 at $4.71 with a corresponding P/E of 12.59 times.
Balance sheet at a Glance:
Total assets increased by $1.32 million (13%) year on year, totaling $11.64 billion (2020: $10.32 billion) as at December 31, 2021. The increase in total assets was mainly due to a $889.08 million or 68% increase in ‘Cash and Bank balances’ to total of $2.19 billion (2020: $1.30 billion) and a $160.54 million (74%) increase in ‘Short-term Investment’ to total $376.48 million (2020: $215.95 million).
Total shareholders’ equity amounted to $8.80 billion as at December 31, 2021 (2020: $7.52 billion). Consequently, book value per share amounted to $2.13 relative to $1.82 in 2020.
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