LASM reports 18% increase in first quarter net profit

July 29, 2021

Lasco Manufacturing Limited (LASM) for the three months ended June 30, 2021 recorded an increase of 26% in total revenue to total $2.32 billion, relative to the $1.85 billion recorded for the comparable period in 2020.

Cost of sales amounted to $1.48 billion (2020: $1.13 billion) for the quarter, an increase of 31% year on year. As a result, gross profit of $840.56 million was recorded for the period, 17% more than the $720.16 million booked for the quarter ended June 30, 2020.

LASM posted other income of $34.64 million versus other loss of $2.32 million reported for the prior corresponding quarter.

Operating expenses decreased by 2% to close the period at $304.26 million versus $310.94 million booked for the corresponding period last year.

Consequently, LASM recorded operating profit of $570.94 million, 40% higher than the $406.90 million booked in 2020.

Finance costs for the first quarter decreased 4% to $15.60 million compared to $16.26 million in the prior year’s comparable period.

As such, profit before taxation amounted to $555.34 million, an increase of 42% from the $390.64 million recorded for the previous year. Taxes recorded for the period amounted to $153.58 million compared to $48.83 million incurred for the corresponding period in 2020. As such, Net Profit for the first quarter totaled $401.76 million compared to $341.81 million in 2020, an increase of 18%.

Consequently, earnings per share for the quarter ended June 30, 2021, amounted to $0.10 relative to $0.08 in 2020. The trailing twelve months EPS amounted to $0.35. The number of shares used in the calculations amounted to 4,130,913,151 units. The stock price closed trading on July 28, 2021, at $5.20 with a corresponding P/E of 14.93 times.

Balance sheet at a Glance:

Total assets increased 14% year on year, totaling $11.23 billion as at June 30, 2021 (2020: $9.87 billion). The increase in total assets over the period was mainly due to a $861.61 million or 43% increase in ‘Trade and Other Receivables’ to total of $2.87 billion (2020: $2 billion) and a 27% increase in ‘Cash and Bank Balances’ to $1.55 billion (2020: $1.23 billion).

Total shareholders’ equity amounted to $8.31 billion as at June 30, 2021 (2020: $7.09 billion). Consequently, book value per share amounted to $2.01 relative to $1.72 in 2020.


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