LASM reports 77% increase in first quarter net profit

Date: August 2,2018 

Lasco Manufacturing Limited (LASM) for the three months ended June 30, 2018 recorded an increase of $222.67 million or 15% in total revenue to total $1.73 billion, relative to the $1.51 billion recorded for the comparable period in 2017.

Cost of sales amounted to $1.12 billion (2017: $1.03 billion) for the quarter, an increase of 9% year on year. As a result, gross profit of $607.43 million was recorded for the period, 27% more than the $478.22 million booked for the quarter June 30, 2017.

LASM posted other income of $2.97 million, 78% less than the $13.76 million reported for the prior year.

Operating expenses remained relatively flat to close the period at $307.57 million versus $308.37 million booked for the corresponding period last year.

Consequently, LASM recorded operating profits of $302.83 million, 65% higher than the $183.61 million booked in 2017.

Finance costs for the year increased 4% to $31.22 million compared to $30.08 million in the prior year’s comparable period.

As such, profit before taxation amounted to $271.61 million, an increase of 77% from the $153.53 million recorded for the previous year. Taxes recorded for the period amounted to $33.95 million compared to $19.25 million incurred for the corresponding period in 2017. As such Net Profit for the first quarter totaled $237.66 million compared to $134.28 million in 2017, an increase of 77%.

Consequently, earnings per share for the quarter ended June 30, 2018 amounted to$0.06 relative to $0.03 in 2017. The twelve months trailing EPS amounts to $0.16. The number of shares used in the calculations amounted to 4,091,163,151 units. The stock price closed trading on July 31, 2018 at $4.05.

LASM stated, “The positive out-turn for the quarter reflects growth in volumes, improved operational efficiencies and streamlining and cost controls.”

Balance sheet at a Glance:

Total assets increased 12% year on year, totaling $8.33 billion as at June 30, 2018 (2017: $7.45 billion). The increase in total assets over the period was mainly due to a $225.72 million or 54% increase in ‘Capital Work in Progress’ to total of $731.22 million (2017: $475.50 million) and a 30% increase in ‘Trade and other receivables’ to total $2.19 billion (2017: $1.69 billion).

Total shareholder equity amounted to $5.16 billion as at June 30, 2018 (2017: $4.57 billion). Consequently, book value per share amounted to $1.26 relative to $1.12 in 2017.


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