LASM Increases Operating Profit by 17 Percent

Key points

• Revenue was higher by 3% at J$1.787 billion compared to J$1.732billion for the first quarter of 2018.
• Cash provided by operations was up 100%.
• Net profit was J$ 44 million dollars higher compared to the same period for 2018.
• Earnings for the period was J$ 0.07 per share. Full year earnings was J$0.26, 100% more than the year before.

LASM Performance

Operating profit at Lasco Manufacturing Limited (JSE : $LASM) was J$ 52 million higher for the first quarter than it was a year earlier. The company reported revenues of J$ 1.79 billion compared to J$ 1.73 billion over the first quarter ended June 20, 2019. Gross profit for the period was J$ 667.89 million. Profit from operations was up 17% from a year earlier to J$ 354.82 million.

Net profit for the period was J$ 282.41 million compared to J$ 237.66 million for the same period in 2018. The company paid J$ 40.35 million for the first quarter. According to the report to shareholders, the company realised better profits due to continued improvements in operational efficiencies, reduction in structural costs and streamlining operations. The company also approved the a dividend of J$ 0.0611 per share. LASM had J$ 1.09 billion in cash and cash equivalents with total assets of J$ 8.77 billion.
Advertisement

LASM Cashflow Statement :

In this section we will look at some of the major line items on the company’s statement of cash flows.

As mentioned earlier, operating profit for the period was J$ 282.41 million with depreciation totaling J$ 66.15 million. Interest expenses was basically flat over the same period of J$ 32.06 million. There was a significant decrease in trade and other receivables from J$ 391.41 million to J$ 74.29 million. Cash provided by operations was up 100% from J$ 212.88 million to J$ 477.99 million. The company spent $J 200 million less in investing activities. LASM made total loan repayments of J$106.23 million for the quarter and paid J$250 million in total dividends.

View the full statement here: https://www.jamstockex.com/wp-content/uploads/2019/07/LASCO-Manufacturing-Limited-1st-Qtr-Report-June-30-2019.pdf

LASM Earnings:

For the first quarter, LASM recorded earnings per share of J$ 0.07 or 1 cent more than the same quarter in 2018. In March, LASM reported total earnings per share of J$0.26 for the full year. The price earnings (P.E.) ratio was calculated at approximately 16 times earnings for the full financial year.

The company had 4,091,163,000 shares in issue and a market capitalisation of J$ 17.59 billion at the time of publication. The stock is up 16.22% since January of 2019.

Tags: Company earnings, LASM Quarterly Reports, Caribbean Value Investor, Lasco Manufacturing Limited, LML, Caribbean business news, Value companies, value investing