LASCO Manufacturing Limited (LASM) has registered record profits of $1.70 billion for the year ended March 31, 2022 producing robust results despite the continued disruption of the global supply chain and materials and energy cost increases.

Net profit for 2022 financial year represented a 24 per cent increase over the $1.38 billion recorded in the comparative year ending March 31, 2021. The solid performance for the year was driven by an increase in revenues in addition to strict cost management and resource allocation initiatives.

Commenting on the results, Managing Director James Rawle said the company delivered strong top and bottom-line performances.

“We continued to execute our improvement programmes, including disciplined cost management and resource allocation, simplification of structures and productivity enhancement initiatives. The performance is attributed to our agility in responding to the various challenges and the commitment of our teams at all levels of the organisation,” said Rawle.

Revenue for the year ended March 2022 totalled $9.4 billion, a 15 per cent increase over the comparative period, while gross profit saw a 12 per cent improvement up to $3.48 billion.

LASCO manufactures soy-based products, juice drinks and water, in addition to the packaging of milk-based products. Distribution of these goods is done locally by its sister company, LASCO Distributors.

The increase in year-end sales was partly driven by a robust digital marketing campaign in collaboration with LASCO Distributors, resulting in more efficient consumer communication and engagement.

Consequently, selling and administrative expenses, including marketing investments for the brands totalled $1.2 billion, a decrease of two per cent when compared to the prior year, reflecting improved efficiencies. The expense sales ratio was 13.6 per cent compared to 18 per cent in the corresponding year.

Operating profit stood at $2.22 billion, representing a 22 per cent increase over the comparative year, with operating profit margin increasing by 130 basis points. Finance costs for the year totalled $47 million, down from $59 million in 2021.

In addition to reporting significant improvements in earnings, LASM’s financial position remains healthy.

Total assets for the year ending March 2022 totalled $12 billion, an 11 per cent increase over the prior year. Meanwhile, current assets stood at $7 billion, up 25 per cent on the previous year.

Inventories value at year-end totalled $1.62 billion, an increase of $354 million on the prior year, reflecting cost increases and temporary inventory increase to mitigate supply chain instability.

COMPANY TO CONTINUE PROACTIVE, AGILE, FLEXIBLE ACTIONS

Trade receivables increased by $283 million to $2.56 billion, reflecting increased volumes and values.

In the meantime, cash and short-term investments at year-end stood at $2.8 billion, up from $2.1 billion in the corresponding period.

Looking ahead, the LASM managing director said the company would continue to take proactive, agile and flexible actions to navigate the ongoing challenges associated with the pandemic and the continued instability in the global supply chain and inflation pressures.