November 8, 2023
LASCO Manufacturing Limited (LASM) for the six months ended September 30, 2023 reported a 10% increase in Revenue totaling $6.03 billion compared to $5.47 billion in the corresponding period last year. Revenue for the second quarter had a 11% increase to close at $3.19 billion compared to $2.87 billion for the comparable quarter of 2022.
Cost of Sales amounted to $3.74 billion (2022: $3.50 billion), this represents an increase of 7% year over year.
Consequently, gross profit increased by 16% to $2.29 billion compared to $1.97 billion for the six months ended September 30, 2022. The company booked gross profit of $1.22 billion for the second quarter versus $1.07 billion reported for the similar quarter of 2022.
Other Operating Income increased by 512% to close at $68.27 million (2022: $11.16 million), while Operating Expenses increased 4% from $724.88 million in 2022 to $754.51 million in the period under review. As a result, operating profits for the six months ended September 30, 2023 amounted to $1.60 billion, a 27% increase relative to $1.26 billion reported in 2022.
Finance Cost for the six months ended September 30, 2023, amounted to $4.92 million, a 67% decrease relative to $14.80 million reported in 2022.
Profit before Tax totalled $1.59 billion a 28% increase from the corresponding period last year. (2022: $1.24 billion). Profit before Tax for the second quarter amounted to $873.35 million (2022: $678.27 million).
Taxation for the six months ended September 30, 2023, amounted to $453.65 million, a 26% increase relative to $360.58 million reported in 2022.
Net Profit for the six months ended September 30, 2023 grew 29% to reach $1.14 billion (2022: $882.78 million). For the quarter, Net profit amounted to $615.01 million. (2022: $468.70 million).
Management noted, “Improvements were as a result of the gains at the operational level and the lower finance charges on the lower debt stock as we continue to pay down debt”.
Unrealized gains on financial instruments for the six months amounted to $6.90 million. (2022: $76.48 million).
Total comprehensive income for the six months ended September 30, 2023, amounted to $1.15 billion, a 20% increase relative to $959.27 million reported in 2022. Total comprehensive income for the second quarter amounted to $592.14 million (2022: $432.97 million).
Consequently, Earnings Per Share for the six months amounted to $0.28 (2022: EPS of $0.21), while Earnings Per Share for the quarter totaled $0.15 (2022: EPS of $0.11). The twelve-month trailing EPS was $0.57 and the number of shares used in these calculations was 4,132,913,151.
Notably, LASM’s stock price closed the trading period on November 08, 2023 at a price of $4.33 with a corresponding P/E ratio of 7.65x.
Balance Sheet at a Glance:
The company’s assets totalled $14.49 billion (2022: $12.54 billion). The growth in total assets was primarily driven by ‘Short term investments’, which increased 85% to close at $2.25 billion. (2022: $1.22 billion).
Shareholder’s equity was $11.75 billion (2022: $9.89 billion), representing a book value per share of $2.84 (2022: $2.39).
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