Lasco Distributors' first quarter profit up 57 per cent
Executive Chairman of Lasco Distributors Limited, Lascelles Chin.
Lasco Distributors Limited (LASD) in its just-released unaudited results for the first quarter ending June 20, 2020, highlighted improved revenue and profits.
Net Profit for the period was $258 million, a 57.4 per cent increase when compared to the corresponding period of 2019.
Revenues totalled $4.7 billion or 8.7 per cent above revenues for the same period of the previous year. Operating profit stood at $317 million an increase of 69.5 per cent on the prior year.
The much-improved profit outturn was fuelled by the revenue growth, significant gains in operational efficiencies and cost containment.
Administrative expenses were contained at $652 million or a reduction of 10.7 per cent on the comparative quarter of the prior year.
The nutritious powdered beverage category, canned foods and pharma returned strong performance throughout the period while the liquid refreshing beverages category underperformed due to the closure of schools, the hospitality industry and the reduction of out of home consumption in general, as a result of the pandemic.
The company said it has been proactive in engaging with its partners and suppliers to ensure the availability of supplies given the potential impact of the COVID-19 pandemic to disrupt the supply chain while adapting its internal processes to meet the associated challenges.
Total assets at the end of June were $9.8 billion an increase of 14.4 per cent compared to the same period last year. Inventories decreased by $335 million or 12.4 per cent to close at $2.4 billion. Trade receivables were $2.0 billion, a reduction of 4.1 per cent compared to the prior year while trade payables increased by $560 million an increase of 20 per cent on the prior year.
Cash and short-term investments taken together closed at $2.6 billion compared to $1.2 billion for the same period last year.
Total loans owing at the end of the period was $73 million compared to $270 million in the previous year.
As the company continues to navigate the pandemic it is recognised that the business could be adversely affected in the periods ahead depending on the extent and duration of the pandemic.
However, Lasco Distributors Limited said it is resilient and will continue to execute appropriate strategies and remain agile in responding to the challenges.