Net profit inched up by 6%

Lasco Manufacturing Limited recorded a 13 per cent rise in revenues for the six months ended September 30, 2021 to total J$4.66 billion relative to the J$4.12 billion recorded for the comparable period in 2020.

This $533.89-million increase in revenues comes on the back of a slow second quarter in which total revenue closed at $2.34 billion, inching up by three per cent from the $2.28 billion recorded for the comparable period in 2020. Cost of sales for the period under review amounted to $2.95 billion coming from $2.52 billion in 2020, an increase of 17 per cent year on year.

This was mainly due to rise in the cost for materials and logistics which were not fully recovered through selling price increased. As a result, gross profit of $1.71 billion was recorded for the period, which was seven per cent more than the $1.60 billion booked in September 2020.

For the September quarter, gross profit decrease by one per cent to close at $869.54 million compared to the 2020 posting of $880.51 million.

Reversing operating losses

For the half-year period, Lasco Manufacturing posted other operating income of $50.97 million, compared to other operating loss of $18.18 million reported for the prior year. For the second quarter, other operating income totaled $16.34 million in contrast to other operating losses of $15.85 million in the previous comparable quarter.

Operating expenses closed the period at $622.89 million compared to $667.84 million booked for the corresponding period last year. Operating expenses declined by 11 per cent for the third quarter amounting to $318.63 million coming from $356.91 million in 2020.

Consequently, the manufacturing company recorded operating profits of $1.14 billion, 24 per cent higher than the $914.65 million booked in 2020. Operating profits rose 12 per cent to close the second quarter at $567.25 million relative to $507.76 million in the prior comparable quarter.

Finance costs for the six months declined by nine per cent to $29.07 million compared to $31.83 million in the prior year’s comparable period. In the second quarter, finance costs declined 13 per cent to $13.47 million as compared with $15.57 million in 2020.

As such, profit before taxation amounted to $1.11 billion, an improvement of 26 per cent from the $882.82 million recorded for the previous year. Taxes recorded for the period amounted to $327.02 million (2020: $145.35 million).

Net profits slightly up

Thus, net profit for the six months period totalled $782.09 million compared to $737.47 million in 2020, an increase of six per cent year over year. For the second quarter, net profit closed at $380.33 million (2020: $395.66 million), down by four per cent.

Total assets increased 10 per cent year on year, totalling $11.14 billion as at September 30, 2021, up from $10.11 billion in 2020. The increase in total assets was mainly due to a 33 per cent increase in ‘Trade and Other Receivables’ to total $2.98 billion compared to the $2.24 billion recorded in 2020.

‘Property, Plant & Equipment’ and ‘Short-term Investment’ also contributed to the growth closing at $4.70 billion and $369.42 million, respectively. Total shareholders’ equity amounted to $8.39 billion as at September 30, 2021 coming from the 2020 booking of $7.24 billion.

Consequently, book value per share amounted to $2.03 relative to $1.75 in 2020.