Modest increase in total revenues to $6.19 billion during the period

Lasco Manufacturing has managed to weather the COVID-19 pandemic, growing its net profit for the nine months ended December 31, 2020 by 30 per cent to just over $1 billion.

This is coming from $780.69 million posted in the comparable period of 2019. Net profit for the December quarter amounted to $281.14 million compared to the $218.13 recorded for the same period in 2019.

Consequently, earnings per share (EPS) for the nine-month period under review amounted to $0.25 relative to $0.19 in 2019. The EPS for the December quarter amounted to $0.07 relative to $0.05 reported for 2019.

The 12 months trailing EPS amounted to $0.30. Lasco Manufacturing closed the trading period on February 05, 2021 at $4.29 with a corresponding P/E of 14.51 times.

Total revenue for the period under review amounted to $6.19 billion compared to $5.84 billion in 2019. Revenue increased $70.53 million, or four per cent, to a total of $2.07 billion in the third quarter, relative to the $2 billion recorded for the comparable quarter in 2019.

Cost of sales amounted to $3.84 billion coming from $3.70 billion posted in 2019, representing, an increase of four per cent year on year. For the third quarter, cost of sales was recorded at $1.31 billion in 2020 relative to $1.28 billion in 2019, a three per cent increase.

As a result, gross profit of $2.35 billion was recorded for the period, 10 per cent more than the $2.14 billion booked for the corresponding period in 2019. Gross profit for the third quarter increased by five per cent to $754.20 million when compared to the $719.24 million booked for the quarter ended December 31, 2019.

Growth in ‘other loss’

The Lasco Manufacturing subsidiary posted other loss of $28 million relative to other loss of $2.21 million for the prior corresponding period, while for the quarter, other loss of $9.83 million was booked versus other loss of $16.13 million in the similar period last quarter.

On the positive side, operating expenses decreased 12 per cent to close the period at $982.81 million versus $1.11 billion booked for the corresponding period in 2019. Expenses for the quarter fell by 20 per cent to close at $314.97 million coming from $392.66 million in 2019.

37% increase in profit before taxation

Consequently, Lasco Manufacturing recorded operating profit of $1.34 billion, 31 per cent higher than the $1.02 billion booked in 2019. Finance costs for the period fell 38 per cent to $46.38 million compared to $75.13 million in the prior year’s comparable period.

As such, profit before taxation amounted to $1.30 billion, an increase of 37 per cent from the $949.36 million recorded for the previous corresponding period. Taxes recorded for the period amounted to $279.07 million compared to $168.67 million incurred for the corresponding period in 2019.

For the third quarter, profit before tax increased $125.57 million or 43 per cent to $414.86 million coming from $289.29 million posted in 2019. Total assets increased by $895.32 million (10 per cent) year on year, totaling $10.32 billion (2019: $9.42 billion) as at December 31, 2020.

The increase in total assets was mainly due to a $581.86 million or 81 per cent increase in cash and bank balances to total of $1.30 billion (2019: $718.68 million) and a $214.93 million (10 per cent) increase in trade and other receivables to total $2.34 billion (2019: $2.13 billion).

Total shareholders’ equity amounted to $7.52 billion as at December 31, 2020 (2019: $6.49 billion). Consequently, book value per share amounted to $1.82 relative to $1.57 in 2019.