Peter Chin – Lasco Distributors’ Managing Director
Operating cost jumped 15 percent in the quarter, to $377 million and just over 17 percent for the six months to $738 million, pushing profit down 19 percent to $112.5 million for the quarter, from $138.7 million in 2013 and down a much larger, 33 percent, to $203 million for the half year, versus $303 million in the 2013 period.
As disappointing as the second quarter numbers are, they represent a major improvement over the first quarter with a revenue increase of 4 percent, and a fall in profits of 45 percent compared to the 2013 June quarter.
Finances|The company has quite a bit of funds tied up in inventories $1.3 billion and receivables $1.7 billion, that are in excess of normal trading levels, cash funds on the other hand is up to $850 million and will be handy in helping to finance the 110,000 square foot warehousing facility, that they will be embarking on shortly, to meet what management says, is increasing demand flowing from new products to be distributed by the company.
The expected payment from their successful law suit against Pfizer is not yet booked and the amount not yet made public but should exceed $1 billion.
Lasco Manufacturing new “I Cool” drinks
[…] Lasco Distributors profit jumps a strong 69 percent, in the December 2014 quarter, on rising sales of 25 percent, an increase over the 10 percent for the six months to September 2014. The company recorded profit of $192 million in the quarter versus $114 million in 2013 and recorded lower nine profits of $395 million from $417 million. Lasco recorded improvement in gross profit margin that climbed to 24 percent, in the December quarter from 23 percent in the same period in 2013, the margin, year to December, is down to 23 percent from 25 percent in the nine months of 2013. Administrative and marketing expenses rose 17 percent in the quarter and year to date, compared with the prior year. Earnings per share for the quarter amounted to 6 cents and for the nine months 12 cents. Earnings for the full year to March should end up around 20 cents per share. With new products being added to be added to its portfolio from within the group and new clients, will swell revenues going forward. The stock now priced at $1.40 remains a buy even if the bigger gains are likely based on 2015/16 results which should be in the order of 30 cents per share. The company is listed on the Jamaica Stock Exchange junior market, has virtually no debt, is yet to book its successful legal claim against Pfizer and boast equity of $2.7 billion and cash funds of $608 million. The company is to build out a new warehouse for housing the increased need of space for new product lines they represent, the building has already been bought and booked in the accounts. […]