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.
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.