November 4, 2022

Lasco Manufacturing Limited (LASM) for the six months ended September 30, 2022, recorded an increase of $813.93 million or 17% in revenue to total $5.47 billion relative to the $4.66 billion recorded for the comparable period in 2021. For the second quarter, total revenue closed at $2.87 billion (2021: $2.34 billion), a 23% rise year over year.

Cost of sales amounted to $3.50 billion (2021: $2.95 billion) for the period, an increase of 19% year on year. As a result, gross profit of $1.97 billion was recorded for the period, 15% more than the $1.71 billion booked in September 2021. For the quarter, gross profit increase by 23% to close at $1.07 billion (2021: $869.54 million). LASM noted, “the gross margin for the three months was 37% comparable to the same period last year.”

LASM posted other operating losses of $23.68 million, compared to other operating income of $50.97 million reported for the prior year. For the quarter, other operating loss totaled $9.93 million in contrast to other operating income of $16.34 million in the previous comparable quarter.

Operating expenses closed the period at $690.04 million compared to $622.89 million booked for the corresponding period last year. Operating expenses increased by 19% for the second quarter amounting to $378.33 million (2021: $318.63 million).

Consequently, LASM recorded operating profit of $1.26 billion, 11% higher than the $1.14 million booked in 2021. Operating profit rose 21% to close the second quarter at $685.45 million relative to $567.25 million in the prior comparable quarter.

Finance costs for the six months declined by 49% to $14.80 million compared to $29.07 million in the prior year’s comparable period. In the second quarter, finance costs declined 47% to $7.18 million (2021: $13.47 million).

As such, profit before taxation amounted to $1.24 billion, an improvement of 12% from the $1.11 billion recorded for the previous year. Taxes recorded for the period amounted to $360.58 million (2021: $327.02 million). Thus, net profit for the six months period totalled $882.78 million compared to $782.09 million in 2021, an increase of 13% year over year. While, for the second quarter, net profit closed at $468.70 million (2021: $380.333 million), up by 23%.

Consequently, Earnings per share for the period ended September 30, 2022 amounted to $0.21 relative to $0.19 in 2021. For the quarter, Earnings per share totalled to $0.11 (2021: $0.09). The trailing twelve months EPS amounts to $0.44. The number of shares used in the calculations amounted to 4,132,913,151 units. The stock price closed trading on November 4, 2022 at $3.80 with a corresponding P/E of 8.69 times.

Balance sheet at a Glance:

Total assets increased 13% year on year, totalling $12.54 billion as at September 30, 2022 (2021: $11.14 billion). The increase in total assets was mainly due to a 230% increase in ‘Short-term investments’ to total $1.22 billion (2021: $369.42 million). ‘Long term investments’ and ‘Inventories’ also contributed to the growth closing at $428.14 million (2021: $221.03 million) and $1.86 billion (2021: 1.29 billion), respectively.

Total shareholders’ equity amounted to $989 billion as at September 30, 2022 (2021: $839 billion). Consequently, book value per share amounted to $2.39 relative to $1.2.03 in 2021.

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