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$7.88 billion revenues for LASCO Manufacturing

Business reporter

Friday, July 31, 2020

LASCO Manufacturing Limited reported on Wednesday that it had achieved revenue of $7.88 billion for the financial year ended March 31, 2020, representing an increase of $320 million or four per cent over the prior corresponding year.

Net profit for the period under review amounted to $981.67 million when compared to the $1.07 billion recorded in the previous corresponding period. This was due to the $101 million deferred tax charge, according to Managing Director James Rawle.

“The [financial] year was a solid one in which the key underlying operational and financial metrics were in line with expectations and our long-term strategy. We experienced some disruptions in the supply of raw materials, out of Europe, due to shipping issues. However, we were able to minimise negative impacts on the operations and product availability, but nevertheless lost some opportunities in sales,” he stated.

He added that in spite of an increasingly competitive marketplace, all segments of the company's product portfolio performed well, building on the exceptionally strong growth of the previous year.

Capital investments mainly centred on continued work on the powder manufacturing facility expansion amounted to $196 million. The project will generate considerable operational savings, Rawle said, and is set to be completed in August.

LASCO Manufacturing Limited, which listed on the Jamaica Stock Exchange Junior Market in 2012, is primarily involved in the manufacturing of soy-based products, juice drinks, water and the packaging of milk-based products from its White Marl plant in St Catherine.

Shareholders' equity at year end amounted to $6.75 billion, up 15 per cent over prior year, while earnings per stock stood at $0.24, down from the $0.26 recorded at March 2019.

Total assets at year-end were $9.73 billion, an increase of 11 per cent when compared with the prior corresponding year.

Rawle further indicated that while the COVID-19 pandemic led to disruptions in some aspects of operations, the extent of negative impacts on the business will depend on the severity and duration of the pandemic.

“However, we are a resilient and adaptable organisation and will respond quickly to the changing circumstances. We remain committed to creating sustained value for our shareholders, employees, consumers, business partners and the communities.”