Profit climbed 31 percent after taxation of $258 million to $615 million in the September quarter this year at Lasco Manufacturing, from $469 million after provision for taxation amounting to $210 million in 2022. For the half year, after taxation of $453 million, profit jumped 29 percent to $1.14 billion from $883 million in 2022 after taxation of $361 million.
Sales revenues rose 11 percent for the quarter, to $3.19 billion from $2.9 billion in 2022 and grew 10 percent for the year to date, to $6 billion from $5.5 billion in 2022.
After a brief one year dip in profit in the 2020 fiscal year, profit has been on a roll since and seems destined for a new record in the current fiscal year ending next March.
Management delivered an improvement in profit margin in the second quarter to 38 percent from 37 percent last year resulting in gross profit rising faster than sales with an increase of 13 percent, with a gross profit of $1.22 billion versus $1.08 billion in 2022. Gross profit for the half year soared 38 percent from 36 percent last year, resulting in an increase of 16 percent to $2.3 billion compared with $1.98 billion in 2022.
Operating expenses rose by just 4 percent in the quarter and half year to $394 million in the second quarter from $378 million in 2022 second quarter and in the half year to $755 million from $725 million in 2022. Finance cost declined in the quarter, to $23 million from $36 million in 2022 and from $15 million to $5 million for the six months period.
Lasco’s ICool drinks.
The operations generated Gross cash flow of $588 million and it was increased to $778 million after a reduction in funds previously tied up in working capital, additions to fixed assets of $309 million. After pumping $589 million into short term investments and $496 million in dividends the net cash position ended at $1.6 billion.
Current assets ended at $9.2 billion inclusive of trade and other receivables of $3.3 billion, cash and bank balances of $3.8 billion, while inventories were steady at $2 billion. Current liabilities ended at $1.86 billion. Net current assets was a solid $7.3 billion.
At the end of September, shareholders’ equity closed at $11.75 billion up from $9.9 billion at the end of September last year. There was no long-term borrowing, while short term loan was just $89 million.
Earnings per share for the quarter was 15 cents and 28 cents for the year to date. IC Insider.com computation projects earnings of 70 cents per share for the fiscal year ending March 2024 and 90 cents in 2025, with a PE of 6.7 times the current year’s earnings based on the price of $4.60 the stock traded at on the Jamaica Stock Exchange
Lasco’s products
Junior Market and the value is well down on the average for the market at 11.6, a clear indication of the potential gains ahead in the price. Net asset value ended the period at $2.85 with the stock selling at 1.6 times book value.
The company is in a healthy financial position to do a major acquisition, with no major loan commitment currently and a tidy wad of liquid funds, with more to come as profit increases in the rest of the fiscal year.
Buy and hold for a few years until growth in sales and profit slows considerably to single digits, investors should see a doubling in the stock price by next year June.
ICInsider.com gives the stocks Buy Rated seal of approval.
Investors exchanged 231,326 shares for $1,524,317 versus 184,792 stock units at $2,093,368 on Tuesday.
At the close, Angostura Holdings ended at $20.51 as investors traded 689 stocks, Ansa McAl remained at $54 after a transfer of 580 units, First Citizens Group rose 1 cent to $49.26 after 1,633 shares were traded. FirstCaribbean International Bank ended at $7 in an exchange of 40 stocks, GraceKennedy remained at $3.40 with investors transferring 10,000 shares, Guardian Holdings fell 5 cents in closing at $19.20, with 1,630 stock units clearing the market. JMMB Group ended at $1.41 with investors dealing in 12,030 units, Massy Holdings closed at $4.50 with a transfer of 120,573 stocks, National Enterprises remained at $3.55 after an exchange of 32,195 units. 
NCB Financial rallied 18 cents to close at $3 with shareholders swapping 8,400 stocks, One Caribbean Media skidded 10 cents to $3.50 in an exchange of 12,285 shares, Prestige Holdings lost 65 cents to end at $10.85 after trading of 3,111 stocks. Republic Financial climbed $2.58 to $124, with 3,506 shares changing hands, Scotiabank slipped 1 cent and ended at $72.60 after an exchange of 670 stocks, Trinidad Cement ended at $2.86, with 22,312 units crossing the market and Unilever Caribbean dipped 5 cents to $10.55 with an exchange of 1,672 stock units.
Investors exchanged 538,556 shares for $11,455,215 compared to 335,666 stock units at $2,934,595 on Friday.
At the close, Agostini’s popped $1 to end at $68.50 as investors exchanged 85 stocks, Angostura Holdings gained $1.74 in closing at $22.25 after a transfer of 24,010 units, Ansa McAl rose $2.95 to $57 with 131,104 shares crossing the market. Ansa Merchant Bank ended at $43.50 after investors traded 7,100 stocks, Calypso Macro Investment Fund climbed 89 cents to to $23.50 with a transfer of 22 shares, Endeavour Holdings ended at $15, with an exchange of 33 units. First Citizens Group ended at $49.25 with shareholders swapping 7,910 stocks, FirstCaribbean International Bank remained at $7, with 700 stock units crossing the exchange, Guardian Holdings declined 45 cents to close at $18.65 with traders dealing in 28,748 shares. JMMB Group lost 6 cents and ended at a 52 weeks’ low of $1.35, with 17,960 stocks crossing the market, L.J. Williams B share increased 10 cents to $2.40 in an exchange of 1,200 units, Massy Holdings fell 6 cents to end at $4.43 with investors transferring 174,722 stock units. 
National Enterprises remained at $3.55 after investors traded 4,000 shares, NCB Financial rallied 18 cents to close at $3.02 with 110,339 stocks clearing the market, Prestige Holdings skidded 5 cents to $11.45 in an exchange of 82 units. Republic Financial dropped $1.50 to a 52 weeks’ low of $124.50, with 7,600 stock units changing hands, Scotiabank shed 1 cent to end at $72.51 after investors exchanged 11,527 shares, Trinidad & Tobago NGL ended at $12.50 while exchanging 8,287 stock units. Trinidad Cement ended at $2.86 in trading 1,990 stocks, Unilever Caribbean advanced 49 cents to close at $11 with stakeholders exchanging 122 units and West Indian Tobacco dropped 41 cents to a 52 weeks’ low of $9.60 in switching ownership of 1,015 shares.
Investors exchanged 93,675 shares for $1,425,280 versus 93,136 stock units at $4,187,061 on Friday.
At the close, Agostini’s rallied $2.50 to close at $67.50, with 292 stock units crossing the market, Angostura Holdings increased by 1 cent to $20.51 while exchanging 1,530 shares, Ansa McAl remained at $54.05 with investors dealing in 1,794 stocks. Ansa Merchant Bank climbed 40 cents to end at $42.12 with four units changing hands, First Citizens Group fell 10 cents and ended at $49.25 after an exchange of 12,550 shares, Guardian Media ended at $2.20 after closing with 70 stock units being traded. Massy Holdings declined 2 cents to end at $4.57 with shareholders swapping 16,511 stocks, National Enterprises ended at $3.55 in an exchange of 1,107 units, National Flour Mills lost 1 cent to close at $1.52, with 6,612 stocks crossing the market. NCB Financial dipped 2 cents and ended at $2.82 in switching ownership of 60 units, 
Prestige Holdings rose 50 cents to $11.50 after an exchange of 850 shares, Republic Financial remained at $120 after 2,313 stock units passed through the market. Scotiabank advanced 1 cent in closing at $72.61 with investors exchanging 761 shares, Trinidad & Tobago NGL shed $1.35 to close at $12.60 after trading 8,325 units, Trinidad Cement remained at $2.90 with a transfer of 40,446 stocks and West Indian Tobacco skidded 28 cents to $10.02, with 450 stock units clearing the market.
Considerable sums have been spent on plant and machinery to improve efficiency and, by extension, increase profit. Accordingly, $439 million was expended over the past year, bringing the gross amount in fixed assets to $2.7 billion from $1.7 billion at the end of February 2022. Most of the new expenditure went into equipping a new cold storage plant that has expanded freezing and cold storage capacity, with some spent on the cogeneration energy plant, which is intended to cut energy costs.
Investors exchanged 93,136 shares for $4,187,061 versus 136,107 stock units at $2,400,320 on Thursday.
First Citizens Group popped 10 cents to close trading at $49.35 with an exchange of 1,752 stocks, FirstCaribbean International Bank ended at $7 in the trading of 11,187 units, Guardian Holdings declined 19 cents to close at $19.80 with shareholders swapping 190 stocks. JMMB Group shed 1 cent to close at $1.41 as investors exchanged 11,050 shares, Massy Holdings advanced 14 cents and ended at $4.59 after 19,098 stock units passed through the market, National Enterprises rose 4 cents in closing at $3.55 after an exchange of 5,029 shares. NCB Financial remained at $2.84 with investors transferring three stock units, One Caribbean Media dropped 29 cents in closing at $3.60 in switching ownership of 2,598 stocks, 
Prestige Holdings climbed 50 cents to $11, with 199 units clearing the market. Republic Financial increased $1 and ended at $120 in an exchange of 30,355 stocks, Scotiabank slipped 5 cents to close at $72.60 with investors dealing in 817 units, Trinidad & Tobago NGL gained $1.45 to end at $13.95 after 5,564 shares crossed the exchange. Unilever Caribbean rallied 86 cents to $11.48 after a transfer of 2,111 stock units and West Indian Tobacco increased 29 cents to close at $10.30, with stakeholders exchanging 1,824 shares.
The company operates a restaurant solely in the Turks and Caicos Islands, and delivered revenues of US$1.8 million in the August 2023 quarter, up 27 percent from US$1.42 million in the prior year and produced gross profit of $1.33 billion this year versus US$1.033 million in the previous year.