Despite many businesses feeling the economic blow due to COVID-19 Lasco Distributors Limited (LASD) was able to surpass general expectations and produced a 57 per cent increase in net profits totalling $258 million for the quarter ending June 30.As a general distributor of consumer and pharmaceutical products, LASD carved out a new record as revenues grew by eight per cent to $4.7 billion.
Executive chairman and founder Lascelles Chin attributed this growth to the company’s hard-working staff and increased demand for their canned products, Lasco food drinks and pharmaceutical products in his report to shareholders.
After direct expenses of $3.8 billion were factored in, gross profit for the period ended four per cent higher at $896.2 million. A 10 per cent drop in operating expenses to $650.8 million coupled with a 39 per cent increase in other income to $73.1 million left LASD with an operating profit of $318.5 million, which was 65 per cent higher over the prior period.
Lower finance costs and high taxes resulted in earnings per share of $0.07 compared with the $0.05 in the prior quarter while an unrealised gain on investments of $13.3 million resulted in LASD having a total comprehensive income of $271.4 million versus the $171 million from the prior period.
Total assets increased by 14 per cent to $9.8 billion with non-current assets growing by 11 per cent to $2.3 billion and current assets up 15 per cent to $7.5 billion.
Cash and cash equivalents stood at $2.5 billion compared with the $956.1 million in the prior period while the company’s equity holdings increased to $275 million.