Revenues grows 18% while net profit is up 16%

Durrant Pate/Contributor

The growth momentum at Lasco Manufacturing has continued during the year-to-date with revenues and profit climbing.

For the combined three quarters, ended December 31, 2022, revenues went up 18 per cent to total J$8.33 billion relative to the J$7.05 billion recorded for the comparable period in 2021. For the December third quarter, total revenue closed at J$2.86 billion, which is a 19 per cent increase over the J$2.40 billion posted for the comparable period in 2021.

Cost of sales amounted to J$5.28 billion (2021: J$4.42 billion) for the period, an increase of 19 per cent year on year. As a result, gross profit of J$3.05 billion was recorded for the period, 16 per cent more than the J$2.63 billion booked in December 2021.

Operating expenses closed the period at J$1.04 billion compared to J$950.24 million booked for the corresponding period last year. Operating expenses for third quarter increased by eight per cent to $352.77 million (2021: $327.35 million).

Profitability improving

Consequently, Lasco Manufacturing recorded operating profit of J$1.97 billion, 13 per cent higher than the J$1.75 billion booked in 2021. For the December quarter, operating profit increased 17 per cent to J$715.12 million relative to J$609.05 million in the prior comparable quarter.

Finance costs for the nine months declined by 51 per cent to J$19.83 million compared to J$40.40 million in the prior year’s comparable period. In the third quarter, finance costs declined 56 per cent to J$5.03 million (2021: J$11.32 million).

As such, profit before taxation amounted to J$1.95 billion, an increase of 14 per cent from the J$1.71 billion recorded for the previous year. Taxes recorded for the period amounted to J$583.10 million (2021: J$521.45 million).

As a result, net profit for the nine-month period totaled J$1.37 billion compared to J$1.19 billion in 2021, an increase of 16 per cent year-over-year. For the third quarter, net profit closed at J$487.57 million (2021: J$403.29 million), up by 21 per cent.

Consequently, earnings per share for the period ended December 31, 2022 amounted to J$0.33 relative to J$0.29 in 2021. Total assets increased 12 per cent year-on-year, totalling J$12.99 billion as at December 31, 2022 (2021: J$11.64 billion).

The increase in total assets was mainly due to a 329 per cent increase in ‘Short-term investments’ to total J$1.62 billion (2021: J$376.48 million). ‘Long term investments’ and ‘Inventories’ also contributed to the growth closing at J$644.92 million (2021: J$221.03 million) and J$1.99 billion (2021: J$1.58 billion), respectively.

Total shareholders’ equity amounted to J$10.40 billion as at December 31, 2022 (2021: J$8.80 billion). Consequently, book value per share amounted to J$2.52 relative to J$2.13 in 2021.