Lasco Manufacturing reported second quarter results, with a 13 percent rise in revenues to $4.65 billion for the half year and 3 percent for the quarter to $2.34 billion from $2.28 billion in 2020.
Profit rose 6 percent to $782 million from $737 million in 2020, after tax charge more than doubled to $327 from $145 million in 2020. Profit after tax dipped 4 percent in the September quarter, to $380 million from $396 million in 2020 as increased taxation grew faster than the rise in profit even as pretax profit rose 12 percent to $554 million from $492 million in 2020.
Lasco’s ICool drinks.
Gross profit margin slipped in the first half of the year and the September quarter to 37 percent from 39 percent in 2020, as input costs climbed faster than revenues by 5 percent to $1.469 billion, in the quarter compared to 16.8 percent for the year to date period, to $2.948 billion. The effect, operating profit slipped just 2.3 percent in the quarter to $870 million from $881 million but rose 6.8 percent for the year to date, to $1.7 billion from $1.6 billion in 2020. According to the Managing Director, James Rawle, in his report accompanying the quarterly, “margins will therefore be under pressure and while further price increases may become necessary, we are committed to mitigate the extent through our drive for improved efficiencies cost control and internal economies.”
Operating expenses declined 11 percent to $319 million in the quarter and slipped 7 percent in the half year to $623 million. Finance cost dipped in the quarter to $13 million, from $16 million in 2020 and $32 million to $29 million for the six months.
Cash inflows brought in $2.28 billion gross, but growth in working capital, addition to fixed assets, loan and dividend payment resulted in a cash flow deficit of $415 million and reduced cash funds from $1.86 billion from the end of March this year.
Lasco’s products
Current assets closed the period at $6 billion, including trade and other receivables of $3 billion, cash and bank balances of $1.44 billion. Current liabilities ended the period at $1.79 billion. Net current assets ended at $4.3 billion. At the end of September, shareholders’ equity stood at $8.4 billion, long term borrowings at $125 million and short term loans at $455 million.
Earnings per share for the quarter was 9 cents and 19 cents for the year to date. IC Insider.com forecasts 45 cents per share for the fiscal year and 60 cents for the following one. The stock traded at $4.50 on the Jamaica Stock Exchange Junior Market, with a PE ratio of 10 times the current year’s earnings and the stock should trade between $10-12 by the end of 2022 if the earnings are achieved and interest rates remain close to present levels.
The stock is undervalued with the price at a 26 percent discount to the market average and half that for a number of stocks. It possesses good management, is building up cash at a fast pace that can be used for increased dividends or expansion of existing plant or acquisitions and will be debt free shortly.
The company paid a dividend of $300 million or 7.26 cents per share in 2021 versus 6 cents in 2020. Net asset value per share is $2.04, with the stock selling at 2.2 times book value.
At the close, 17 securities traded up from 16 on Wednesday, with four rising, five declining and eight remaining unchanged. Calypso Macro Investment Fund and Massy Holdings closed trading at 52 weeks’ high. The Composite Index fell 2.67 points to settle at 1,429.12, the All T&T Index dropped 1.75 points to settle at 1,942.89 and the Cross-Listed Index shed 0.51 points to settle at 123.24.
Clico Investment Fund remained unchanged at $26.99 with 12,798 units changing hands, First Citizens Group remained at $51 after exchanging 1,923 shares, GraceKennedy lost 13 cents to end at $6.10 with the swapping of 40,828 stocks. Guardian Holdings inched 1 cent, ending at $30.33 with an exchange of 21,064 units, JMMB Group dipped 1 cent to $2.23 after exchanging 7,097 stock units, Massy Holdings rose 5 cents to close at $90 trading 31,412 stocks. National Enterprises remained at $3.29, with 15 units changing hands, National Flour Mills traded 250 stock units at $1.90, One Caribbean Media closed at $4.75, with 1,065 shares crossing the market. Republic Financial Holdings remained at $136.47 in trading 1,254 stocks, Scotiabank had an exchange of 1,552 shares at $62.90, Trinidad & Tobago NGL shed 4 cents in closing at $18.31 in switching ownership of 466 units. Trinidad Cement dropped 9 cents in closing at $3.80 while exchanging 4,975 stock units and West Indian Tobacco advanced 20 cents to $30.50 after 911 stock units changed hands.
Overall, 16 securities traded, down from 17 on Tuesday, with three rising, one declining and 12 remaining unchanged. The Composite Index gained 4.62 points to close at 1,431.79, the All T&T Index popped 9.14 points to 1,944.64 and the Cross-Listed Index lost 0.03 points to settle at 123.75.
JMMB Group traded 40 shares at $2.24. L.J. Williams B share rose 20 cents to $1.50 in exchanging 10,000 units, Massy Holdings popped $3.95 to end at $89.95 in switching ownership of 107 stocks, National Enterprises remained at $3.29 while exchanging 35 stock units. National Flour Mills ended at $1.90 in an exchange of 10,364 shares, One Caribbean Media remained at $4.75 after trading 10 units, Republic Financial Holdings remained at $136.47 after exchanging 474 stocks. Scotiabank climbed 90 cents to close at $62.90, with 2,000 stocks crossing the exchange, Trinidad & Tobago NGL ended unchanged at $18.35, with 65 stock units changing hands, Trinidad Cement closed at $3.89 with the swapping of 15 shares and West Indian Tobacco traded 70 units to close at $30.30.
Seventeen securities traded up from 15 on Monday, with four rising, seven declining and six remaining unchanged.
Massy Holdings popped 95 cents to $86 after 255 shares changed hands, National Flour Mills shed 6 cents in closing at $1.90 in switching ownership of 12,469 stock units, NCB Financial Group lost 1 cent to close at $8.05 after exchanging 50,701 stocks. Republic Financial Holdings dropped 53 cents to $136.47 while exchanging 130 stocks, Scotiabank declined $1 to $62 after trading 500 shares, Trinidad Cement fell 1 cent to close trading of 2,040 units at $3.89. Unilever Caribbean closed at $16.20 in an exchange of 55 stock units and West Indian Tobacco lost 29 cents to close at a 52 weeks’ low of $30.30 in trading 460 shares.
GraceKennedy slipped 1 cent to $6.24 in trading the market 301 stocks. Guardian Holdings fell 17 cents to $30.33 with 1,653 units changing hands, JMMB Group ended at $2.24 while exchanging 1,000 stock units, Massy Holdings traded at $85.05. NCB Financial Group remained at $8.06 in exchanging 7,980 units, Point Lisas climbed 5 cents to $3, with 718 stock units changing hands, Prestige Holdings remained at $7.05 after 845 stocks were exchanged. Republic Financial Holdings gained $1 to close at $137 after trading 178 shares, Scotiabank advanced 50 cents in closing at a 52 weeks’ high of $63, with 532 units crossing the exchange and Unilever Caribbean dropped 15 cents to $16.20 in switching ownership of 5,005 stock units.
First Citizens Group closed at $50.75 with an exchange of 1,771 units, GraceKennedy fell 5 cents in closing at $6.25 after trading 3,065 shares, Guardian Holdings remained at $30.50 in an exchange of 4,040 units. Guardian Media ended $3.21 in exchanging 8,000 stock units, JMMB Group traded 3,800 shares at $2.24, One Caribbean Media traded 7,921 stocks at $4.75. Republic Financial Holdings declined $1 to close at $136 in an exchange of 535 units, Scotiabank remained at $62.50 in trading 360 shares, Trinidad & Tobago NGL ended at $18.35, with the swapping of 970 stock units. Unilever Caribbean closed at $16.35 in switching ownership of 1,000 stocks and West Indian Tobacco slipped 1 cent to $30.59 in trading 10,548 shares.
At the close, 16 securities traded down from 17 on Wednesday, with five rising, two declining and nine closing unchanged. The Composite Index gained 8.18 points to close at 1,425.22, the All T&T Index spiked 16.23 points to 1,942.34 and the Cross-Listed Index slipped 0.06 points to settle at 122.19.
Clico Investment Fund traded 65 stock units at $26.79. First Citizens Group closed with an exchange of 2,216 stock units at $50.75, GraceKennedy remained at $6.30 with the swapping of 381 units, Guardian Holdings rallied 35 cents to $30.50 after trading 402 stock units. National Enterprises traded 1,800 stocks at $3.29, National Flour Mills climbed 6 cents to end at $1.96, with 2,732 shares crossing the exchange, Point Lisas declined 5 cents to close at $2.95, with 10,000 stock units changing hands. Prestige Holdings advanced 4 cents in closing at $7.05 after exchanging 4,155 units, Republic Financial Holdings remained at $137 after 1,519 stocks crossed the market, Scotiabank popped 50 cents to end at a 52 weeks’ high of $62.50 after trading 512 shares. Trinidad & Tobago NGL popped 32 cents to $18.35 in an exchange of 54 shares, Trinidad Cement fell 16 cents to $3.90 while exchanging 78,942 units, Unilever Caribbean remained unchanged at $16.35 in switching ownership of 60 stock units and West Indian Tobacco closed at $30.60, with 10,109 stocks changing hands.
Guardian Holdings dropped $1.85 to $30.15, with 7,500 shares clearing the market, JMMB Group ended trading 3,001 units at $2.24. Massy Holdings shed $4.90 to end at $85.05 with 500 stocks changing hands, National Enterprises popped 4 cents to $3.29 in trading 25 stock units, NCB Financial Group fell 8 cents to $8.06 with 2,020 shares crossing the market. One Caribbean Media declined 5 cents to close at $4.75 after 120 units changed hands, Republic Financial Holdings gained $1.24 to end at $137 with the swapping of 951 stock units, Scotiabank ended at $62 in an exchange of 300 shares. Trinidad & Tobago NGL rose 3 cents to $18.03 while exchanging 100 stocks and West Indian Tobacco fell 35 cents in closing at $30.60 after trading 10,864 units.
At the close, 18 securities traded compared to 19 on Monday, with seven rising, four declining and seven closed unchanged. Massy Holdings ended trading at a 52 weeks’ high.
GraceKennedy remained at $6.35, with 160 shares changing hands. Guardian Holdings spiked $1.88 to $32 trading at 47,716 units, JMMB Group ended at $2.24 after 149 stocks crossed the market, Massy Holdings spiked $4.60 in closing at a 52 weeks’ high of $89.95 in trading 20,027 units. National Flour Mills dipped 5 cents to $1.90 in exchange of 1,260 stocks, NCB Financial Group declined 1 cent in closing at $8.14 with 25,370 shares changing hands, One Caribbean Media fell 6 cents to $4.80 with the swapping of 20 stock units. Prestige Holdings remained at $7.01 after exchanging 500 stocks, Republic Financial Holdings popped 6 cents to close at $135.76 after trading 200 stock units, Scotiabank traded 383 shares at $62. Trinidad & Tobago NGL spiked 43 cents to $18, with 620 units clearing the market, Trinidad Cement gained 1 cent in closing at $4.06 in trading 900 stocks and West Indian Tobacco remained at $30.95, with 19,610 units changing hands.
At the close, 19 securities traded compared to 15 on Friday, with three stocks rising, six declining and ten remaining unchanged. The Composite Index dipped 2.23 points to 1,416.31, the All T&T Index declined 4.14 points to settle at 1,924.08 and the Cross-Listed Index slipped 0.03 points to 122.34.
JMMB Group shed 1 cent to end at $2.24 with the swapping of 5,248 stocks, L.J. Williams B share fell 4 cents to $1.30, with 700 stock units clearing the market, Massy Holdings rose 35 cents to a 52 weeks’ high of $85.35 while exchanging 2,263 shares. National Flour Mills declined 5 cents to $1.95 after an exchange of 240 stock units, NCB Financial Group ended at $8.15, with 2,981 shares changing hands, Point Lisas remained at $3 in exchanging seven stocks. Prestige Holdings inched 1 cent higher in closing at $7.01 after trading 28 units, Scotiabank remained at $62 in switching ownership of 3,820 stocks, Trinidad & Tobago NGL shed $1.22 to end at $17.57 with the swapping of 150 units and West Indian Tobacco ended at $30.95 after 13,791 shares cleared the market.