Profit slowed at Lasco Distributors, climbing 18 percent in the third quarter compared the same period in 2022 and 29 percent for the year to December, with profit for the quarter rising to $404 million, from $343 million in the December 2022 quarter, from revenues that grew 8 percent to $7.3 billion from $6.78 billion in 2022. Revenues rose by 11 percent from $19.64 billion for the nine months to December 2022 to $21.9 billion to December 2023, with profits rising a solid 29 percent to $1.2 billion from $930 million in 2022.
Earnings per share for the six months amount to 34 cents, up from 27 cents in the previous year, with the third quarter ending with 11 cents versus 9 cents in 2022. ICInsider.com’s projects earnings of 55 cents per share in the year to March 2024 and 80 cents in 2025, with the stock trading at $4 at a PE of just 7 times 2024 and 5 times 2025 earnings. With the market averaging over 13 times the current year’s earnings, the stock is rated a buy, with good upside price potential.
Other operating income contributed $94.6 million to the quarterly profit in 2023 up from $91 million in 2022 in the December quarter and $206.7 million for the nine months to December, from $161 million in 2022.
Gross profit rose 16 percent in the nine months to $3.96 billion from $3.4 billion in 2022 and grew by 11 percent in the December quarter to $1.32 billion from $1.19 in 2022 with gross profit margin remaining unchanged in the second quarter at 18 percent, but rose to 18 percent in 2023 from 17 percent for the 2022 nine months.
Administrative and other expenses rose 13.6 percent in the third quarter to $909 million from $623 million in the prior year and climbed 11 percent for the year to date, to $2.66 billion from $2.37 billion in 2022. Finance costs rose to $24.7 million in the nine months to December, from just $4 million in 2022.
The last dividend paid to shareholders was 10 cents per share in July 2023.
The company closed the calendar year, with cash and investments of $3.6 billion, with shareholders’ equity of $9.25 billion, with virtually no borrowed funds on hand.