LASM reports 22% increase in year end net profit

June 1, 2023

Lasco Manufacturing Limited (LASM) for the year ended March 31, 2023, recorded an 19% increase in revenue to total $11.24 billion relative to the $9.48 billion recorded for the comparable period in 2022. For the fourth quarter, total revenue closed at $2.91 billion (2022: $2.43 billion), a 20% rise year over year.

Cost of sales amounted to $7.16 billion (2022: $6.00 billion) for the period, an increase of 19% year on year. As a result, gross profit of $4.09 billion was recorded for the period, 17% more than the $3.48 billion booked in March 2022. For the quarter, gross profit increased by 21% to close at $1.15 billion (2022: $818.93 million).

LASM posted other operating income of $85.21 million, compared to other operating income of $32.22 million reported for the prior year. For the quarter, other operating income totaled $120.26 million in contrast to other operating loss of $35.16 million in the previous comparable quarter.

Operating expenses closed the period at $1.48 billion compared to $1.29 billion booked for the corresponding period last year. Operating expenses for Q4 increased by 28% to $439.83 million (2022: $343.10 million).

Consequently, LASM recorded operating profit of $2.69 billion, 21% higher than the $2.22 billion booked in 2022. Q4 operating profit increased 50% to $715.92 million relative to $475.83 million in the prior comparable quarter.

Finance costs for the twelve months declined by 51% to $23.06 million compared to $47.22 million in the prior year’s comparable period. In the fourth quarter, finance costs declined 53% to $3.24 million (2022: $6.82 million).

As such, profit before taxation amounted to $2.67 billion, an increase of 23% from the $2.18 billion recorded for the previous year. Taxes recorded for the period amounted to $584.24 million (2022: $468.35 million). As a result, net profit for the twelve month period totaled $2.08 billion compared to $1.71 billion in 2022, an increase of 22% year over year. While, for the fourth quarter, net profit closed at $711.55 million (2022: $522.10 million), up by 36%.

Consequently, Earnings per share for the period ended March 31, 2023 amounted to $0.50 relative to $0.41 in 2022. For the quarter, Earnings per share totaled to $0.17 (2021: $0.13). The trailing twelve months EPS amounts to $0.55. The number of shares used in the calculations amounted to 4,132,913,151 units. The stock price closed trading on May 29, 2023 at $4.00 with a corresponding P/E of 7.94 times.

Balance sheet at a Glance:

Total assets increased 14% year on year, totalling $13.74 billion as at March 31, 2023 (2022: $12.07 billion). The increase in total assets was mainly due to a 103% increase in ‘Short-term investments’ to total $1.66 billion (2022: $818.65 million). ‘Inventories’ also contributed to the growth closing at $2.16 billion (2022: $1.62 billion).

Total shareholders’ equity amounted to $11.10 billion as at March 31, 2023 (2022: $9.35 billion). Consequently, book value per share amounted to $2.69 relative to $2.26 in 2023.

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2023-06-01T11:16:57-05:00