LASM reports 30% increase in nine months net profit

February 08, 2021

Lasco Manufacturing Limited (LASM) for the nine months ended December 31, 2020, reported total revenue of $6.19 billion compared to $5.84 billion in 2019. Revenue increased $70.53 million or 4% to a total of $2.07 billion in the third quarter, relative to the $2 billion recorded for the comparable quarter in 2019.

Cost of sales amounted to $3.84 billion (2019: $3.70 billion) for the period, an increase of 4% year on year. While, for the third quarter cost of sales was recorded at $1.31 billion in 2020 relative to $1.28 billion in 2019, a 3% increase.

As a result, gross profit of $2.35 billion was recorded for the period, 10% more than the $2.14 billion booked for the corresponding period in 2019. Gross profit for the third quarter increased by 5% to $754.20 million when compared to the $719.24 million booked for the quarter ended December 31, 2019.

LASM posted other loss of $28 million relative to other loss of $2.21 million for the prior corresponding period. While for the quarter, other loss of $9.83 million was booked versus other loss of $16.13 million in the similar period last quarter.

Operating expenses decreased 12% to close the period at $982.81 million versus $1.11 billion booked for the corresponding period last year. Expenses for the quarter also fell by 20% to close at $314.97 million (2019: $392.66 million).

Consequently, LASM recorded operating profit of $1.34 billion, 31% higher than the $1.02 billion booked in 2019.

Finance costs for the period fell 38% to $46.38 million compared to $75.13 million in the prior year’s comparable period.

As such, profit before taxation amounted to $1.30 billion, an increase of 37% from the $949.36 million recorded for the previous corresponding period. Taxes recorded for the period amounted to $279.07 million compared to $168.67 million incurred for the corresponding period in 2019. For the third quarter, profit before tax increased $125.57 million or 43% to $414.86 million (2019: $289.29 million).

Net profit for the nine months totaled $1.02 billion, a 30% increase when compared to $780.69 million in 2019, while for the quarter net profit totaled $281.14 million (2019: $218.13 million).

Consequently, earnings per share (EPS) for the period amounted to $0.25 relative to $0.19 in 2019. The EPS for the quarter amounted to $0.07 relative to $0.05 reported for 2019. The twelve months trailing EPS amounted to $0.30. The number of shares used in the calculations amounted to 4,130,913,151 units.LASM closed the trading period on February 05, 2021 at $4.29 with a corresponding P/E of 14.51 times.

Balance sheet at a Glance:

Total assets increased by $895.32 million (10%) year on year, totaling $10.32 billion (2019: $9.42 billion) as at December 31, 2020. The increase in total assets was mainly due to a $581.86 million or 81% increase in ‘Cash and Bank balances’ to total of $1.30 billion (2019: $718.68 million) and a $214.93 million (10%) increase in ‘Trade and other Receivables’ to total $2.34 billion (2019: $2.13 billion).

Total shareholders’ equity amounted to $7.52 billion as at December 31, 2020 (2019: $6.49 billion). Consequently, book value per share amounted to $1.82 relative to $1.57 in 2019.


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