Lasco Manufacturing saw its sales revenue jump by 26 per cent to J $2.3 billion for the period ended June 30, 2021.

The company, part of the Lasco Group founded by Lascelles Chin, produced an operating profit of $571 million, a 40 per cent increase on the same quarter of the prior year.

Lasco makes affordable products with a significant manufacturing presence in Jamaica.

It is a brand that continues to enjoy a high favourability rating among citizens.

At a time when inflation and currency depreciating are biting while commodity prices are escalating, Jamaicans are turning to Lasco goods during the pandemic.

Its cost management at this time is commendable, keeping an eye on administrative expenses which came in at 2 per cent ($304 million) lower than the same quarter in 2020.

Gross margin fell 36 per cent due in part to rising freight costs and a steep rise in materials.

Lasco Manufacturing has prudently curtailed its capital investments during the period under review, bringing it down to just $35 million, focusing on technological  upgrades.

Efforts have been made to tighten up operational efficiencies and reduce costs. Trade and other receivables increased by 43 per cent to $2.8 billion in 2020. Trade payable rose by 27 per  cent coming in a $1.4 billion.

Commenting on the quarter under review’s performance, Managing Director James Rawle said: “ The pandemic is not over and depending on the frequency and duration of outbreaks and the containment measures that may become necessary, some disruptive effects are still likely.

“Already we are experiencing significant materials and associated logistic cost increases, disruptions to normal shipping schedules among other impacts – issues that are related to the pandemic. We will therefore continue to be proactive, agile and prudent in executing our business plans and take the necessary measures to ensure business continuity and mitigate potential negative impacts to the business.”