A boost in sugar revenues allowed conglomerate, Lascelles deMercado to earn $601 million or 44.5 per cent more after-tax profit for its December first-quarter compared with a year prior.

The company’s revenues increased 24.5 per cent to $7.1 billion which allowed the company to nearly double its operating profit to $605 million versus $340 million a year prior.

The profit growth was due to the $478 million in pre-tax profit earned by its liquor, rums, wines and sugar division which reversed the $30 million loss in the segment a year prior.

During the review period, two other business segments earned more pre-tax profit compared with the previous year’s quarter with its general merchandise division earning $71.6 million versus $42.8 million and its transportation division earning $21.8 million versus $11.9 million loss.

Conversely, the general insurance division earned $68.9 million versus $181.6 million; and investments division earned $93.8 million versus $325.8 million.

The improved overall performance resulted in its net cash and equivalents increasing to $5 billion up 29.7 per cent over the prior year’s quarter. Up to print time Lascelles did not respond to Business Observer queries regarding the conglomerate’s growth in revenues. However, last week Lascelles told the Business Observer that it planned to spend over $640 million on capital expenditure in 2010 year, but remained cautious during the ongoing recession.

The group expended approximately $637 million for capital additions in 2009, most of this expenditure related to the liquors, rums, wines and sugar segment. Specific projects included land levelling at Appleton estate, electrical and turbine upgrade at the Appleton distillery, a blending process automation project at its Kingston plant and a new energy-efficiency project.

Shaw explained that Lascelles would continue to invest in order to secure the long-term growth and successful development of our various businesses.

Lascelles’ year end results ending September 2009 declined 15 per cent to record $2.55 billion in profit; but it would have grown by some 20 per cent if it were not for a $1.4 billion deduction associated with the discontinuation of its pension fund. In January Lascelles, Henriques et al Superannuation Fund (LHSF), a defined benefit pension scheme, was closed to the admission of new members, which meant that without additional contributions to the fund it would have a “finite life”.

“Consequently, the present value of the economic benefits available to the employers in the form of reductions in future contributions has been reduced by an aggregate amount of $1,385.8 million,” said the company’s financial statements.