LASCO Manufacturing Limited (LASM) is reporting net profit of $780.7 million for the nine months ending December 2019.
This performance reflects an 11 per cent improvement over the earnings realised in the corresponding nine months of 2018, up from $700 million.
Revenue was $5.8 billion compared to $5.6 billion for the corresponding period of the previous year, while operating profit was $1 billion versus $919 million in the prior year.
At the same time, gross profit for the nine months ended December 2019 increased by 10.8 per cent, moving from $1.93 billion in the comparative period of 2018 to $2.14 billion.
The results were driven by improvements in revenue and gross profit and contained costs of sales and other expenses.
Managing director of LASCO Manufacturing Limited, James Rawle.
According to James Rawle, managing director at LASCO Manufacturing Limited, “The margin improvement was primarily the result of improvements in operational efficiencies.”
Capital investments were primarily focused on the expansion of the dry plant at the White Marl facility, which is expected to be completed by the end of the financial year.
Total assets at the end of December 31 stood at $9.4 billion, an increase of 190.8 per cent of the last year with net current assets being $2.4 billion or 17.2 per cent above the same period in the prior year.
Trade and other receivables were $2.1 billion of 5.7 per cent below prior year while trade payables increased by 35 per cent when compared to the same period of the prior year.
Looking at the results for the quarter, net profit for the three months stood at $218 million, an increase of 10 per cent up from $197 million.
Revenue for the third quarter ended December 31 was $2 billion, representing an increase of 10 per cent on the revenue for the corresponding period of the prior year.
Cost of sales remained flat, with $1.27 billion recorded for the three months ended December 2019, compared to $1.2 billion in the comparative quarter of 2018.
Concurrently, gross profit for the three months ended December 31, 2019 increased by 17 per cent, up from $611 million in the corresponding quarter to $719 million in the review period.
In the area of Corporate Social Responsibility, LASM, in partnership with the LASCO Chin Foundation and the Ministry of Education Youth and Information (MoEYI), hosted the annual Teacher and Principal of the Year Award. Bhagya Malladi, an astute professional with a wealth of technical skills emerged as the Teacher of the Year; while Lynton Weir, was declared the Principal of the Year.