Revenues up and profit down for Lasco Distributors
Lasco Distributors Limited (LDL) has increased business volumes more than five times the amount recorded in 2016 after experiencing a successful first full year of operation in its export business unit.
What’s more, the company also inked distribution agreements with five well-established distributors: Eve Sales, Sodipal SA, Massy, Si Es Natural SA and Ansa Mcal during its financial year 2016/2017. It means the company now has footholds in New York, USA; Haiti; Trinidad; Panama, Bermuda and Guyana.
“The company opened several new markets in Haiti and Panama as well as Bermuda and has now expanded into a total of 19 countries. There is an expectation in the more sophisticated markets that there will be impending regulatory changes. However, management continues to monitor these developments to avert any disruption in sales,” Managing Director Peter Chin told shareholders in the company’s just released 2017 annual report.
He added that the new markets have increased growth for the company’s iCool beverage brands in several major markets.
Lasco Distributors’ long-term goal is to have market penetration across the region and brand dominance for key brands, including iCool in the major markets.
“With new distribution agreements and a platform established in the various territories, the focus for the coming year will be on brand marketing and trade execution with our partners to strengthen market development with the right product portfolio mix in each region,” Chin stated, adding that the new product rollout will be done in tandem with local product launch for faster market penetration throughout the region.
Lasco Distributors closed the 2016/2017 financial year with net profit of $609.7 million, down by 14.9 per cent compared to the previous year. Revenues of the company, however, grew by 8.6 per cent to $15.8 billion year over year.
Executive Chairman Lascelles Chin in his statement to shareholders noted that the company’s net profit performance was impacted by logistic issues, one-off expenses due to legal fees of the Pfizer case, construction costs and marketing investments.
“Indeed, there were challenges last year. However, the charge is to consolidate, focus on key objectives and look to build on the foundation that has already been established.
“September 2017 is set for the judgement of the Pfizer case. Whatever the ruling, after contending this matter over 12 years, it will mark another landmark for the company as it nears the closing of this chapter,” he said.
Chin reasoned that Lasco Distributors’ building blocks for future growth will arise from new innovations, export and service delivery.