LASM reports 19% increase in first quarter net profit

Date: August 2, 2019 

Lasco Manufacturing Limited (LASM) for the three months ended June 30, 2019 recorded an increase of 3% in total revenue to total $1.79 billion, relative to the $1.73 billion recorded for the comparable period in 2018.

Cost of sales amounted to $1.12 billion (2018: $1.12 billion) for the quarter, a marginal decline of 0.5% year on year. As a result, gross profit of $667.89 million was recorded for the period, 10% more than the $607.43 million booked for the quarter June 30, 2018.

LASM posted other income of $17.12 million, 476% more than the $2.97 million reported for the prior year. The company will be contacted to gain further insights on this vast increase.

Operating expenses increased 7% close the period at $330.19 million versus $307.57 million booked for the corresponding period last year.

Consequently, LASM recorded operating profits of $354.82 million, 17% higher than the $302.83 million booked in 2018.

Finance costs for the year increased 3% to $32.06 million compared to $31.22 million in the prior year’s comparable period.

As such, profit before taxation amounted to $322.76 million, an increase of 19% from the $271.61 million recorded for the previous year. Taxes recorded for the period amounted to $40.35 million compared to $33.95 million incurred for the corresponding period in 2018. As such Net Profit for the first quarter totaled $282.42 million compared to $237.66 million in 2018, an increase of 19%.

Consequently, earnings per share for the quarter ended June 30, 2019, amounted to $0.07 relative to $0.06 in 2018. The twelve months trailing EPS amounts to $0.27. The number of shares used in the calculations amounted to 4,091,163,151 units. The stock price closed trading on August 2, 2019 at $4.30.

Balance sheet at a Glance:

Total assets increased 5% year on year, totaling 8.77 billion as at June 30, 2019 (2018: $8.33 billion). The increase in total assets over the period was mainly due to a $828.16 million or 496% increase in ‘Cash and Bank Balances’ to total of $995.12 million (2018: $166.96 million) and a 13% increase in ‘Property, Plant and Equipment’ to $4.73 billion (2018: $4.20 billion). This movement was however tempered by the 28% reduction in ‘Trade and other receivables’ to total $1.59 billion (2018: $2.19 billion).

Total shareholder equity amounted to $5.89 billion as at June 30, 2019 (2018: $5.16 billion). Consequently, book value per share amounted to $1.44 relative to $1.26 in 2018.

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2019-08-02T20:48:41+00:00