LASM reports 24% increase in year end net profit

Lasco Manufacturing (LASM), for the year ended March 31, 2022, total revenue increased by 15% from $8.22 billion in 2021 to $9.48 billion in 2022. Revenue increased 20% for the fourth quarter to a total of $2.43 billion, relative to the $2.03 billion recorded for the comparable period in 2021.

Cost of sales amounted to $6 billion (2021: $5.10 billion) for the period, an increase of 17% year on year. As a result, gross profit of $3.48 billion was recorded for the year ended March 31, 2022, 12% more than the $3.11 billion booked for the corresponding period in 2021. For the quarter, cost of sales was recorded at $1.57 billion relative to $1.27 billion in 2021. Gross profit for the quarter increased 12% to $854.08 million when compared to the $759.20 million booked for the similar quarter ended March 31, 2021.

LASM posted other income of $32.22 million relative to $24.64 million for the prior year.

Operating expenses decreased 2% to close the period at $1.29 billion versus $1.32 billion booked for the corresponding period last year.  Of this, administrative and other expenses declined 3% to $1.15 billion (2021: $1.19 billion), while selling and promotion expenses rose 2% to $139.81 million (2021: $136.85 million). Expenses for the quarter reflected an increase of 1% to close at $343.10 million (2021: $340.90 million).

Consequently, LASM for the year ended March 31, 2022, recorded operating profits of $2.22 billion, 22% higher than the $1.81 billion booked in 2021. While for the quarter, operating profit closed at $475.83 million (2021: $470.94 million).

Finance costs for the year ended March 31, 2022 fell 20% to $47.22 million compared to $59.19 million in the prior year.

As such, profit before taxation amounted to $2.18 billion, an increase of 24% from the $1.76 billion recorded for the previous corresponding period. Taxes recorded for the period amounted to $468.35 million compared to $376.18 million incurred for the corresponding period in 2021. Net profit for the year was $1.71 billion, 24% higher than last year’s net profit of $1.38 billion. LASM booked $522.10 million in net profit for the fourth quarter, compared $361.02 million for the corresponding quarter in 2021.

As such, total comprehensive income for the year ended totalled $1.74 billion compared to $1.40 billion in 2021, an increase of 24%.

Consequently, earnings per share (EPS) for the period amounted to $0.413 relative to $0.334 in 2021. The EPS for the quarter amounted to $0.126 relative to $0.087 reported for 2021. The number of shares used in the calculations amounted to 4,132,913,151 units. Notably, LASM’s stock price closed trading on May 27, 2022 at $5.07 with a corresponding P/E of 12.27 times.

Balance sheet at a Glance:

Total assets rose by 11% year on year, totaling $12.07 billion (2021: $10.85 billion) as at March 31, 2022. The increase in total assets over the period was mainly due to a $600.92 million increase in ‘Short Term Investments’ to a total of $818.65 million (2021: $217.73 million). ‘Inventories’ and ‘Receivables’ also contributed to the increase amounting to $1.62 billion (2021: $1.23 billion) and $2.56 billion (2021: $2.28 billion), respectively.

Total shareholders’ equity amounted to $9.35 billion as at March 31, 2022 (2021: $7.91 billion). Consequently, book value per share amounted to $2.26 relative to $1.91 in 2021.


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