Recently, we have seen an increase in the number of companies reporting record profit and sales in the history of the Jamaica Stock Exchange (JSE) and Lasco Distributors Limited (LASD) is no different. For the financial year ending March 31, 2018, LASD reported the highest net profit in the history of the company of JMD$1.004 billion. This is a 65 percent increase in profit compared to JMD$609.68 million in 2017.
LASD attributes its performance to successful strategies, growth in its key business categories, management of margins, cost efficiencies and proceeds from the ongoing Pfizer case. The company’s successful strategies include an expansion in the market, cost efficiencies, the development of new products and a strong management and operational team.
The development of new products was seen in the third quarter when the company produced an adult energy drink called Konka and a carbonate beverage called Lyrix. According to LASD, they both received favourable response from consumers. The products were manufactured by affiliate Lasco Manufacturing Limited. Additionally, during the financial year, LASD launched a healthier version of the LASCO Food Drink by reducing its sugar content by 50 percent. Its liquid beverage, iCool, sugar content was also reduced.
Lasco received JMD$273 million paid in damages and interest in the Pfizer case during the financial year but the company says it expects to receive more money and has since filed an appeal with the courts.
A total of JMD$16.3 billion was earned in revenue, an increase of 3.16 percent from the JMD$15.8 billion earned in 2017. Total assets for the year increased by 15 percent from JMD$7.4 billion in 2017 to JMD$8.5 billion in 2018.
The stock currently trades at JMD$4.00 on the JSE and we at SSL continue to recommend Lasco Distributors Limited to our clients.
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