Lasco Distributors Limited has secured an exclusive representation for a leading Swiss pharmaceutical portfolio, a move the company says will accelerate growth in its pharmaceutical division even as near-term margins remain under pressure.

The development comes as the distribution arm of the three-pronged Lasco affiliated companies delivered a six-and-a-half per cent revenue increase for the September quarter to $8.13 billion, driven by stronger sales in its nutrition, food and beverage categories. But higher logistics costs, foreign exchange losses and staff-related expenses dampened profit, which slipped to $276 million from $359 million a year earlier.

For the half-year, revenue grew almost three per cent to $15.4 billion — a record for the period — with exports up 19 per cent year on year. Still, higher costs, including a $16-million foreign exchange loss and increased marketing spend, pushed net profit down to $580 million from $718 million.

The company said the realignment of its healthcare portfolio, managed through its pharmaceutical division, is gaining traction and that the full benefit of its expanded distribution rights for the Swiss company’s products should begin reflecting from the third quarter.

At its recent annual general meeting, Managing Director John De Silva updated shareholders on the new distribution arrangement, among other strategies to increase revenues through organic growth.

He also used the platform to caution consumers to brace for selective price increases and product mix adjustments to restore margins — a strategy the company expects will support gross profit improvement in the quarters ahead.

Manufacturing arm turned stronger quarterly profit

Across the group, Lasco Manufacturing Limited turned in stronger profits for the quarter, benefiting from cost control and improved product mix. Quarterly profit climbed 23 per cent to $712 million, while revenue grew 7.6 per cent to $3.18 billion.

For the six-month period, however, sales dipped 1.6 per cent to $6.11 billion amid continued supply chain and market constraints. Still, net profit edged up four per cent to $1.33 billion, supported by a higher gross margin of 38.3 per cent.

The manufacturer’s asset base expanded to $19.56 billion, reflecting a 16 per cent year-on-year increase, boosted by a $978-million long-term loan used to fund capital projects. Among those initiatives is a new Italian filling plant expected to lift beverage output by as much as 40 per cent when it comes on stream before the end of the calendar year.

Lasco Manufacturing said it remains focused on organic growth through innovation, product development, and sustainability initiatives. The company also reaffirmed plans to invest in capacity expansion and workforce development to strengthen resilience against supply chain disruptions and maintain profitability.

— Karena Bennett