Lasco Manufacturing profit up 21% despite COVID impact

Lasco Manufacturing Limited saw its revenue and profit increase in its first quarter ended June 30, 2020 despite the impact of the coronavirus (COVID-19).

Lasco Manufacturing said its net profit was $304 million, 21% more than the previous year.

The company indicates in its report to shareholders that segments including hospitality, industry, schools, entertainment were affected under COVID conditions and continue to reflect reduced consumption moments.
However, Managing Director James Rawle said that because of the diversified nature of the business and its ability to supply, there were important increases in other categories.

Sales revenue for the quarter was $1.85 billion, up three per cent year over year.

Net profit was J$304 million, an increase of 21 per cent, year over year. Administrative expenses were J$311 million, six per cent improved over first quarter 2019.

Rawles said gains in margins were due to improved operational efficiencies, reduction of structural costs and continued streamlining of the business .
The rate of capital investment for Lasco Manufacturing was restricted due to the pandemic and the cash conservation investment, however J$38 million was spent during the period towards the completion of the company’s planned powder plant.

Total assets were J$9.87 billion, up 12.5 per cent year over year, with current assets at J$4.7 billion, up 28 per cent over the similar period in 2019.
Trade and total receivables climbed to J$2 billion, up from J$1.6 billion the year before and payables climbed to J$1.1 billion, marginally higher.

Cash and bank balances, including short term investments were J$1.4 billion.

The Board approved dividends of J$0.06 cents per share, totalling J$250 million to shareholders on July 24.

James Rawle said the pandemic was still evolving and, taken that the company was still unable to chart its duration and course as well as its impact on the company, strategies applied to contain any possible negative impact would continue.