LASM reports 27% increase in first quarter net profit

July 31, 2023

Lasco Manufacturing Limited (LASM) for the three months ended June 30, 2023, recorded an increase of 9% in total revenue to total $2.83 billion, relative to the $2.60 billion recorded for the comparable period in 2022.

Cost of sales amounted to $1.76 billion (2022: $1.71 billion) for the quarter, an increase of 3% year over year. Consequently, gross profit grew 19% to $1.07 billion comparable to $898.17 million recorded for the quarter ended June 30, 2022.

LASM posted other operating income of $14.85 million relative to other income of $6.96 million reported for the prior corresponding quarter.

Operating expenses increased by 8% to close the period at $359.98 million versus $332.42 million booked for the corresponding period last year.

Consequently, LASM recorded operating profit of $723.88 million, a 26% growth when compared to the $572.71 million booked in 2022.

Finance costs for the first quarter sharply declined by 65% to $2.65 million compared to $7.62 million in the prior year’s comparable period.

As such, profit before taxation grew 28% and amounted to $721.23 million, relative to the $565.09 million recorded for the previous year. Taxes recorded for the period amounted to $195.32 million compared to $151.01 million incurred for the corresponding period in 2022. As such, Net Profit for the first quarter totaled $525.92 million compared to $414.08 million in 2022, an increase of 27%.

After a 73% decline in unrealized gains to $29.77 million (2022: $112.21 million), Total comprehensive income closed at $555.69 million (2022: $526.29 million).

Consequently, earnings per share for the quarter ended June 30, 2023, closed at $0.13 (2022: $0.10). The trailing twelve months EPS amounted to $0.53. The number of shares used in the calculations amounted to 4,132,913,151 units. The stock price closed trading on July 28, 2023, at $4.57 with a corresponding P/E of 8.61 times.

Balance Sheet at a Glance:

Total assets increased 16% year on year, totaling $14.18 billion as at June 30, 2023 (2022: $12.27 billion). The increase in total assets over the period was mainly due to a $852.23 million or 104% increase in ‘Short term Investments’ to total $1.67 billion (2022: $816.20 million) and a 136% increase in ‘Cash and Bank Balances’ to $2.41 billion (2022: $1.02 billion).

Total shareholders’ equity amounted to $11.65 billion as at June 30, 2023 (2022: $9.46 billion). Consequently, book value per share amounted to $2.82 relative to $2.29 in 2022.

 

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