May 31, 2021

Lasco Manufacturing, for the year ended March 31, 2021, total revenue increased by 4% from $7.89 billion in 2020 to $8.22 billion in 2021. Revenue decreased 1% for the fourth quarter to a total of $2.03 billion, relative to the $2.04 billion recorded for the comparable period in 2020.

Cost of sales amounted to $5.10 billion (2020: $4.97 billion) for the period, an increase of 3% year on year. For the quarter, cost of sales was recorded at $1.268 billion relative to $1.266 billion in 2020.  As a result, gross profit of $3.11 billion was recorded for the year ended March 31, 2021, 7% more than the $2.92 billion booked for the corresponding period in 2020. Gross profit for the quarter decreased 2% to $759.20 million when compared to the $778.04 million booked for the similar quarter ended March 31, 2020. LASM noted that, gross profit margin improvement “can be attributed to the effects of product mix and gains in manufacturing efficiencies.”

LASM posted other income of $24.64 million relative to $30.02 million for the prior year.

Operating expenses decreased 20% to close the period at $1.32 billion versus $1.66 billion booked for the corresponding period last year.  Of this, administrative and other expenses declined 13% to $1.19 billion (2020: $1.36 billion), while selling and promotion expenses fell 53% to $136.85 million (2020: $291.01 million). Expenses for the quarter also reflected a decrease of 37% to close at $340.90 million (2020: $540.35 million).

Consequently, LASM for the year ended March 31, 2021, recorded operating profits of $1.81 billion, 40% higher than the $1.29 billion booked in 2020. While for the quarter, operating profit closed at $470.94 million (2020: $269.92 million).

Finance costs for the year ended March 31, 2021 fell 37% to $59.19 million compared to $93.62 million in the prior year.

As such, profit before taxation amounted to $1.76 billion, an increase of 46% from the $1.20 billion recorded for the previous corresponding period. Taxes recorded for the period amounted to $376.18 million compared to $217.11 million incurred for the corresponding period in 2020. Net profit for the year was $1.38 billion, 40% higher than last year’s net profit of $983.68 billion. LASM booked $361.02 million in net profit for the fourth quarter, compared $202.99 million for the corresponding quarter in 2020.

As such, total comprehensive income for the year ended totalled $1.40 billion compared to $1.02 billion in 2020, an increase of 38%.

Consequently, earnings per share (EPS) for the period amounted to $0.334 relative to $0.238 in 2020. The EPS for the quarter amounted to $0.087 relative to $0.049 reported for 2020. The number of shares used in the calculations amounted to 4,091,163,151 units. Notably, LASM’s stock price closed trading on May 28, 2021 at $5.49 with a corresponding P/E of 16.45 times. 

Management noted that, “Capital Investment amounted to $251 Million (prior year $196 Million) with the major project of the Powder Manufacturing Plant expansion now completed and brought into operations in February 2021.

Balance sheet at a Glance:

Total assets increased 11% year on year, totaling $10.85 billion (2020: $9.74 billion) as at March 31, 2021. The increase in total assets over the period was mainly due to a $504.15 million increase in ‘Cash and Cash Equivalents’ to a total of $1.86 billion (2020: $1.35 billion). ‘Inventories’ and ‘Receivables’ also contributed to the increase amounting to $1.26 billion (2020: $1.08 billion) and $2.28 billion (2020: $2.04 billion), respectively.

Total shareholders’ equity amounted to $7.91 billion as at March 31, 2021 (2020: $6.75 billion). Consequently, book value per share amounted to $1.91 relative to $1.64 in 2020.