Profit up 21% at Lasco Distributors

Lasco Distributors reported full-year results to March, with revenues rising 7.5 percent to $19.5 billion and profit increasing 21.4 percent to $726 million. The year’s performance reflects a big recovery after profit fell 30 percent in the first quarter to June last year, and 10 percent to the end of the third quarter.
The company enjoyed an 8.24 percent rise in revenues for the March quarter to $5.2 billion, with profit after tax for the quarter at $183 million, up 961 percent from just $17 million in 2019. The quarter suffered from a fall in gross profit margin to 18.4 percent versus 19.2 percent in 2019. Gross profit was 19.4 percent for the fiscal year versus 19.6 percent in 2019.
Other income in the fourth quarter climbed to $60 million, a turnaround from a loss of $37 million in the March quarter in 2019, but was nearly flat at $130 million for the year to March.
The increase in cost for the year was kept close to the growth in revenues, with Administrative expenses rising 8 percent to $2.37 billion while selling and promotion expenses fell 9 percent to $703 million for the year.
Segment results show revenues rising 3.6 percent for the Consumer division for the fiscal year to $15.7 billion while the Pharmaceutical division jumped 27.7 percent to $3.8 billion. Segment profit jumped 36.5 percent for the Consumer division to $557 million but the Pharmaceutical division dropped by 18.6 percent to $154 million even as revenues rose strongly.
Earnings per share ended at 21.27 cents and IC Insider.com projects 38 cents per share for the 2021 fiscal year, with the stock trading at a PE ratio at 7.7 at the last traded price of $2.91, well below its sister company, Lasco Manufacturing.
Cash flows from operating resulted in the generation of $1 billion before working capital changes. Current assets stood at $6.9 billion, including Cash and cash equivalents of $1.47 billion at the end of March with current liabilities closing the year at $3.38 billion. Shareholders’ equity ended the year at $5.7 billion, with borrowed funds being just $116 million.
The company paid a dividend amounting to $151 million last year, with profit rising, a large pool of cash and virtually no borrowed debt, there is room for a big increase in future dividend payments that could make the stock an attractive dividend payer.