ICooled profits hike at Lasco Manufacturing

Lasco Manufacturing's bottling line.

Lasco Manufacturing’s bottling line.

Lasco Manufacturing generated total revenues of $1.44 billion, 34 percent more than the $1.08 billion in the June quarter of 2014, resulting in a 75 percent jump in profit to $247 million or 6 cents per share from $141 million in 2014 and slightly ahead of the $243 million for the March quarter.
Gross profit margin for the quarter climbed to 33 percent from 29 percent in 2014 but gross profit jumped 50.50 percent well above the growth in revenues, a positive development for continued strong growth in profit going forward.
Operating Expenses climbed 29 percent to $185 while finance cost rose from $32 million to $42 million as a result of construction phase of the factory completed, resulting in the interest on the funds used in construction being expensed as opposed to being capitalised during the construction phase.
With new factory facilities completed and in use, depreciation ended at $67 million for the fiscal year up from $27 million in 2014 but is set to jump in 2016 with only a fraction of the annual charge being booked to March 2015. With more monies to be transferred to fixed assets for the year to March 2016 depreciation cost should climb. At the end of March, net book value of property, plant and equipment amounts to $3.4 billion and includes assets under construction of $1.34 billion. The cost of assets under construction will be depreciated once the property is complete and in use. The estimated additional cost of completion of the facility was $373 million at March, since then more than $150 million was added to fixed assets.
Lasco's new I Cool drink distributed locally by Lasco Distributors, produced by Lasco Manufacturing.

Lasco’s new I Cool drink distributed locally by Lasco Distributors, produced by Lasco Manufacturing.

“Production capacity at the Liquid Plant has already been doubled during this quarter, to meet the overwhelming market demand for our iCool line of beverages. During this year, we will invest further in new equipment to increase its capacity. There will be many more new products to come on line once production capacity is at its normal level”, Chairman Lascelles Chin advised shareholders“. The new Dry Plant at White Marl has now completed the testing and trial phase, and will be fully operational within the next quarter to achieve full efficiency. The existing Red Hills Road operation for this quarter has recorded an increase of 28 percent in net profits over last year. There will be new products coming on stream by the end of the year,” the Chairman further stated.
At the end of the June quarter, Inventories stood at $736 million and is up from $433 million and Receivables jumped to $1.26 billion from $846 million at the end of June 2014. Borrowing stands at $1.86 million against equity capital of $5.8 billion.
IC Insider projects profit at $1.6 billion for the year or 40 cents per share for the year to March 2016, that should jump to around 60 cents for 2017. While the company becomes taxable this year capital allowances plus tax will be a 12.5 percent will result in little or no taxes being paid on profit for the year.
The company is listed on the junior market of the Jamaica Stock Exchange and last traded at $1.90 for a PE of just less than 5 based on IC Insider’s projected earnings. The stock should deliver a healthy increase in price during the fiscal year and the next as the expanded product lines and the new factory deliver increased revenues at reduced cost.
Lasco Manufacturing has been a BUY RATED stock for some time and remains with that status.

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  1. […] to end at $6, Lasco Financial gained 5 cents to end at $3.10 with 161,804 shares changing hands and Lasco Manufacturing ended with 8,272,640 shares changing hands to close at […]

  2. […] Financial closed at $4.16 with 49,260 shares changing hands. Lasco Manufacturing ended trading with 250,166 shares to close at $5, the company reported profit generated before tax […]

  3. […] 10 cents at $7.35. Lasco Financial fell 2 cents to close at $4.12 with 9,309 shares changing hands, Lasco Manufacturing ended trading with 1,035,846 shares to close at $5, Medical Disposables closed at $3.57 with 4,000 […]

  4. […] units trading and ended at $7.80, Lasco Financial closed at $4 with 67,025 shares changing hands. Lasco Manufacturing ended trading 285,652 shares to close at $5, Medical Disposables rose 35 cents and closed at $3.50 […]

  5. […] 2 cents at $7.80, Lasco Financial fell 14 cents to close at $4 with 291,225 shares changing hands. Lasco Manufacturing rose 16 cents in trading 155,178 shares to close at $5, Medical Disposables fell 40 cents and closed […]

  6. […] trading and ended unchanged at $8, Lasco Financial closed at $4 with 184,400 shares changing hands. Lasco Manufacturing traded 300,316 shares and closed at $5, Medical Disposables had 870 shares changing hands to close […]

  7. […] pumped up the prices of the heavily weighted Lasco Manufacturing by 48 cents while CAC 2000 climbed 74 cents to a new high and tTech jumped $1.20 to new highs and […]

  8. […] pumped up the prices of Lasco Distributors and Lasco Manufacturing to new highs and pushed the junior market up by 8.19 percent increase or 167.21 points to land at […]

  9. […] 31 percent, Caribbean Cream 23 percent, Jamaica Teas 28 percent, Lasco Financial 37 percent and Lasco Manufacturing 32 percent. What a difference a year can make? By the end of 2015, gains were all over the place […]

  10. […] for a closing 52 weeks’ high. Lasco Financial closed at $3.70, with 3,899 shares changing hands, Lasco Manufacturing closed at $3.50 with 246,352 shares trading, Medical Disposables traded 10,000 shares to close […]

  11. […] rose 17 cents to close at a new 52 weeks’ high of $3.70, with 26,998 shares changing hands, Lasco Manufacturing closed at $3.50 with 264,625 shares trading, the stock traded earlier as low as $3.10 and Derrimon […]

  12. […] close at $3.50, with 172,697 shares changing hands, the stock traded at $3.60 for an intraday high. Lasco Manufacturing gained 10 cents, to close at $3.40 with 67,000 shares trading, Derrimon Trading 11.75% preference […]

  13. […] rose 43 cents to close at a 52 weeks’ high of $3.55, with 241,631 shares changing hands and Lasco Manufacturing lost 55 cents to close at $3 with 298,484 shares […]

  14. […] $4.35 after falling by 20 cents, Lasco Financial closed at $3, with 204,662 shares changing hands, Lasco Manufacturing gained 1 cent and closed at $3.31, with 2,652,146 shares trading. Paramount Trading ended with 2,000 […]

  15. […] shares changing hands, at $4.30, Lasco Financial ended at $3, with 345,682 shares changing hands. Lasco Manufacturing added 22 cents and closed at $3.62, with 70,117 shares trading, Medical Disposables price rose 1 […]

  16. […] at $4.05, Lasco Financial ended at $2.95, with 76,650 shares changing hands after losing 5 cents. Lasco Manufacturing fell 3 cents to $3.68 with 163,003 shares trading and Derrimon Trading preference share ended with […]

  17. […] The main trades have been Cable & Wireless traded 732,740 units and last traded at $1.45, Lasco Manufacturing with 526,824 shares at $3.51, Caribbean Producers with 362,506 units with a gain of 30 cents to […]

  18. […] end with a rise of 10 cents at $4, Lasco Financial ended at $3, with 465,338 shares changing hands. Lasco Manufacturing closed with a decline of 16 cents to $3.55 with 255,274 shares trading and Eppley 2019 Preference […]

  19. […] Financial ended with a decline of 10 cents to $3.40, with a total of 400,852 shares changing hands, Lasco Manufacturing closed at $3.75 with 65,070 shares trading with a loss of 20 cents and Paramount Trading ended with […]

  20. […] the 1,400 points level for the first time, just after the market opened on Wednesday morning, after Lasco Manufacturing traded 31,500 units at $3.90 to lift the index by 23.71 to 1,420.07. The junior market ended trading […]

  21. […] gained 23 cents and closed at $2.63 to close at a 52 weeks high while 740,049 shares changed hands. Lasco Manufacturing traded 283,090 shares to end at $3.11 while shedding 34 cents, Paramount Trading ended with 4,504 […]

  22. […] at $2.95, Lasco Financial gained 4 cents and closed at $2.45 while 427,767 shares changed hands. Lasco Manufacturing traded 192,350 shares to end at $3.30, Medical Disposables closed at $2.55 with 883 shares trading, […]

  23. […] shares changed hands with the price rising 10 cents, the stock traded at $2.65 during the day, Lasco Manufacturing traded 147,651 shares to end at $3.49 after trading 14 cents higher and Medical Disposables closed […]

  24. […] junior market index hit 1,300 points in the morning session with Lasco Manufacturing trading at new record high of $4, in the end the market closed at a new all-time closing high of […]

  25. […] Lasco Manufacturing traded at a new high of $4 and pushed the junior market index 1,300 points in early trading but by 11am the price drifted down to $3.55 and the index was down to 1,161.69 and is up by 31.70 for another record over Monday’s close. The JSE Market Index rose 237.68 points to 106,890.93. The JSE All Jamaican Composite index gained 265.63 points to 118,412.93, the JSE combined index rose 507.48 points to be at 112,187.67. A total of 19 securities traded at 11 am with a volume of a mere 991,123 units, 11 stocks gained 5 declined. […]

  26. […] of 25 cents, Lasco Financial gained 15 cents with 186,279 shares changing hands to end at $1.95, Lasco Manufacturing traded 55,812 shares to end at $2.95 after gaining 15 cents for a new all-time high and Paramount […]

  27. […] to $1.97. Lasco Financial had 140,901 shares changing hands to end at $1.75 for a fall of 15 cents. Lasco Manufacturing did not trade and ended with an offer to sell 500,000 units at $3 and a bid to buy just 2,204 units […]

  28. […] chip in. On Friday, the junior market index jumped 31.29 points to close the week at 1,017.38 with Lasco Manufacturing hitting a new high of $2.40 before closing at $2.28 and Caribbean Cream jumping 30 cents to $2.05. […]

  29. […] at $2, Lasco Financial had 46,336 shares changing hands, ended at $1.61 after losing 14 cents. Lasco Manufacturing with 25,350 shares trading, closed at $2 with a gain of 1 cent, Paramount Trading ended with 16,782 […]

  30. […] $3.50, Lasco Financial ended with 990,914 shares changing hands for a decline of 10 cents to $1.60, Lasco Manufacturing fell 4 cents with 80,726 shares trading at $1.96 and Paramount Trading gained 25 cents in trading […]