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Net profit increased by 41% to $243.19 in Q3

Lasco Distributors Limited has grown its net profit for the nine months ended December 31, 2020 by 31 per cent to close at $731.25 million.

Net profit for the same period in 2019 was $557.50 million. During the nine month period, the company paid out $138.97 million in taxation compared to 2019 when taxes amounted to $60.21 million.

As for the third quarter, net profit increased by 41 per cent to $243.19 million coming from $171.92 million recorded in December 2019. For the nine-month period in 2020, pre-tax profit amounted to $870.22 million, representing an increase of 41 per cent from the $617.71 million recorded in the previous year.

Pre-tax profit saw a 55 per cent increase in the third quarter closing at $290.72 million compared to $187.96 million for the December 2019 quarter. Operating profit during the three quarters of 2019 rose by 39 per cent to close at $873.81 million compared to $630.27 million in 2019.

Operating profit up 53% in Q3

For the December 2020 quarter, there was a 53 per cent increase operating profit to $291.61 million relative to $190.45 million in the prior comparable quarter in 2019. For the period under review, Lasco Distributors grew its revenues by six per cent to $15.23 billion, up from $14.30 billion in the corresponding period in 2019.

For the last quarter, revenue also increased by a similar six per cent, closing at $5.17 billion compared to the $4.90 billion posted for the comparable period in 2019. Cost of sales during the period under review amounted to $12.44 billion, up eight per cent on the $11.48 billion reported in the prior comparable period.

Cost of sales for the period under review went up by seven per cent to $4.24 billion versus $3.97 billion in the comparable quarter in 2019.

Consequently, gross profit fell by one per cent year over year, closing at $2.79 billion compared to the $2.82 billion generated for the same period in the prior year.

However, gross profit for the quarter increased by one per cent to $929.56 million. Other operating income rose by 49 per cent to end the nine months period at $105.68 million relative to $70.73 million in the corresponding period last year.

Operating expenses for the review period was down 11%

For the quarter, other operating income decreased by two per cent to $24.93 million coming from $25.42 million in 2019. Operating expenses of $2.02 billion was booked for the nine months, representing an 11 per cent decline on $2.26 billion recorded for the comparable period of 2019.

Operating expenses fell by 12 per cent for the third quarter amounting to $662.88 million coming from $755.74 million during the comparable period in 2019. Finance cost fell by 71 per cent to $3.59 million for the period compared to $12.56 million in the year prior.

Total loans owing at the end of the period was $33 million compared to $113 million in the previous year. Total comprehensive income for the period amounted to $767.48, whereas total comprehensive income for the quarter ended at $279.42 million, a 59 per cent increase over the $175.50 million reported in the corresponding quarter in 2019.

Earnings Per Share (EPS) for the nine months ended December 31, 2020 totaled $0.21 versus $0.16 for the corresponding period in 2019. For the quarter, earnings per share amounted to $0.07. The trailing 12 months EPS is $0.26.

Lasco Distributors weathered COVID pandemic

Commenting on the nine-month performance, the management highlighted that, “we have so far successfully weathered the impact of the pandemic and have maintained market position through constant monitoring and implementation of strategic measures. The company remains resolute in the fight against the pandemic”.

As at December 31, 2020,  total assets amounted to $10.17 billion, seven per cent more than last year’s $9.49 billion. Total non-current assets amounted to $2.32 billion coming from $2.21 billion in 2019, representing a five per cent increase over the corresponding period last year.

This was mainly attributed to an 82 per cent increase in financial assets at fair value, which ended at $369.38 million, coming from $202.63 million in 2019.  Total current assets amounted to $7.85 billion relative to $7.28 billion as at December 31, 2019, due to an 81 per cent increase in cash and cash equivalent.

The increase in cash and cash equivalent amounted to $2.23 billion relative to the $1.23 billion reported twelve months prior. Shareholders equity amounted to $6.30 billion as at December 31, 2020 (2019: $5.60 billion), reflecting an increase of 12 per cent.

This translated in book value per share of $1.79 (2019: $1.60)