Cost cuts and moderate revenue growth drove profit at Lasco Manufacturing 41 percent higher for the year to March this year to $1.33 billion, with the fourth quarter rising 83 percent to $367 million over that of 2020.
Pretax profit jumped a strong 83 percent for the quarter, to $457 million from $249 million in the 2020 March quarter and 46 percent for the 12 months to March, with $1.75 billion up from $1.2 billion in 2020. The profit is subject to full taxation as of October 12, last year.
Gross profit margin came in at 38 percent for the year, up from 37 percent of the 2020 fiscal year. Revenues climbed four percent for the fiscal year, with $6.2 billion but were flat at $2 billion for the fourth quarter.
Administrative and other costs fell 13 percent for the year to March to $1.19 billion from $1.36 billion in 2020, resulting from a fall of $167 million in staff cost from $717 million to $550 million, primarily as the company incurred no share option cost in the year versus $185 million in the prior year. Selling and promotion expenses fell from $291 million to $137 million.
Finance cost dipped from $94 million to $59 million as the company continues to pay down loans that stood at $1.05 billion at the end of March 2020 to $820 million, with $454 million earmarked to be repaid in the 2022 fiscal year. Taxation consumed $376 million of profits, up from $217 million in 2020.
The company’s principal activities remain, the manufacture of soy-based products, juice drinks, water, and packaging of milk-based products.
Lasco Manufacturing products.
Shareholder’s equity stood at $7.9 billion at the end of March 2021. Cash funds and investments amount to $2.35 billion after the company generated $1.6 billion in cash inflows, before working capital and capital financing needs and paying a dividend of $251 million.
Lasco generated earnings per share for the year of 33.2 cents, up from 23.67 cents in 2020. ICInsider.com projects earnings of 40 cents for the fiscal year to March 2022.
The stock last traded on the Junior Market of the Jamaica Stock Exchange at $5.50, with a PE ratio of 16.6 based on the reported earnings and 13.8 based on the 2022 projected earnings. The price target for the stock, to March 2022, is $7-8.
