Profit jumped 45 percent to $363 million for the quarter ending September this year, from $250 million in the September 2015 quarter for LASCO Manufacturing from revenue of $2.2 billion, an increase of 29 percent over the 1st quarter, this year and 35 percent over the June quarter of 2015.
For the six months period ended September 2016, LASCO generated a net profit of $587 million, 18 percent above the previous year’s profit of $497 million.
Revenue increased 28 percent to September 2016 to $4 billion, over the same period last year resulting from increased production as part of the expansion of the manufacturing plant. Gross margin of $1.3 billion, was achieved compared to $1 billion, the previous year.
Expenses for the six months rose 23 percent to $585 million, compared to the same period last year, due mainly to increases in marketing and equipment maintenance expenses.
“Production at the Liquid Plant continues to grow steadily, and we will further increase our capacity to meet the market demand for our iCool line of beverages, by ramping up production with the installation of additional equipment by the end of the financial year. We continue to be optimistic and confident about the future for this product line with substantial profits to be realized” Robert Parkins, Managing Director, stated in a release with the results.
Perkins went on to say “The new Dry Plant at White Marl is now fully operational, and together with the existing Red Hills Road Dry Plant recorded an increase of 24 percent in profits over last year at the end of the 2nd quarter. New products will be introduced by the end of the year to enhance the product line which is projected to continue to realize significant sales and profits.”
“The Statement of Financial Position shows Property, Plant and Equipment moving from $3.5 billion, at the beginning of the financial year to $4.6 billion at the close of the 2nd quarter. This is due to approximately $1 billion, of assets associated with both the liquid and dry plants being transferred during the period from work in progress as a result of continuing commissioning of these operations.”
The company reported cash flows from operations of $1.5 billion including more than $600 million released from working capital of which $1.17 billion was spent on expanding the plant.
IC Insider is forecasting $1.8 billion in profit or 45 cents earnings for the full year to March next year and $3.7 billion or 90 cents per share for 2018. Lasco last traded at $5 on the junior market of Jamaica Stock Exchange.