Lasco Distributors profit disappoints

Lasco Manufacturing dropped 40 cents to push Junior Market down.

Revenues rose by 11.44 percent to $18.1 billion from $16.3 billion at Lasco Distributors for the 2019 fiscal year to March, but the good news stop there.
Cost rose rapidly while other revenues declined. Administrative, marketing and sales expenses rose sharply by 20 percent to $2.98 billion from $2.49 billion resulting in pretax profit dropping sharply to $692 million from $1.08 billion.
Operating profit rose 11.9 percent to $3.55 billion from $3.17 billion. Taxes rose to $94 million from $75 in 2018 leaving net profit at $598 million and earnings per share at 17.5 cents versus $1 billion or 29 cents in 2018. The 2018 result, got a boost from inflows from a claim against Pfizer that resulted in other income of $395 million with 2019 generating just $139 million.
Gross cash flow brought in $880 million but the company ended with net cash outflows of $400 million. Cash and short term investments amounted to $1.5 billion down from $1.8 billion in 2018. Fixed assets grew to $1.8 million from $1.48 billion in 2018.

Lasco Distributors products.

At the end of the year, borrowed funds amounted to $540 million. Payables ended at $2.84 billion down from $3.6 billion in 2018. Current assets slipped to $6.6 billion from $5.9 billion. Shareholders’ equity grew to $5.2 billion from $4.57 billion.
Earnings per share for 2019 came out at 17.5 cents with IC projecting 30 cents for 2020.The stock traded at $3.70 at a PE Ratio of 13 times current year’s earnings.

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