Durrant Pate/ Contributor

Lasco Manufacturing recorded a reasonable first quarter in June in which net profit was better on a marginal increase in revenues.

Net profit for the quarter totalled J$525.92 million, compared to J$414.08 million for the similar period last year, representing an increase of 27 per cent. Taxes for the period closed at J$195.32 million versus J$151.01 million incurred for the same period last year.

Pre-tax profit grew 28 per cent to J$721.23 million, relative to the J$565.09 million for the previous year. After a 73 per cent decline in unrealised gains to J$29.77 million (2022: J$112.21 million), total comprehensive income closed at J$555.69 million (2022: J$526.29 million).

Consequently, earnings per share for the quarter ended June 30, 2023, were J$0.13 (2022: J$0.10). The stock price closed trading on July 28, 2023, at J$4.57, with a corresponding P/E of 8.61 times.

Revenue performance

Revenue for the quarter recorded an increase of 9.0 per cent to reach J$2.83 billion, relative to the J$2.60 billion recorded for the comparable period in 2022. Cost of sales amounted to J$1.76 billion (2022: J$1.71 billion) for the quarter, an increase of 3.0 per cent year over year.

Lasco posted other operating income of J$14.85 million relative to other income of J$6.96 million reported for the prior corresponding quarter. Operating expenses increased by 8.0 per cent to close the period at J$359.98 million versus J$332.42 million booked for the corresponding period last year.

The company recorded operating profit of J$723.88 million, a 26 per cent growth when compared to the J$572.71 million booked in 2022. Finance costs for the first quarter sharply declined by 65 per cent to $2.65 million, compared to $7.62 million in the prior year’s comparable period.

Balance Sheet at a Glance

Total assets increased 16 per cent year on year, totalling J$14.18 billion as at June 30, 2023 (2022: J$12.27 billion). The increase in total assets over the period was mainly due to a J$852.23 million, or 104 per cent increase, in ‘Short term Investments’ to total J$1.67 billion (2022: J$816.20 million) and a 136 per cent increase in ‘Cash and Bank Balances’ to J$2.41 billion (2022: J$1.02 billion).

Total shareholders’ equity amounted to J$11.65 billion as at June 30, 2023 (2022: J$9.46 billion). Consequently, book value per share amounted to J$2.82 relative to J$2.29 in 2022.