LASCO Manufacturing has invested US$7 million in a new high-speed production line as the company moves to modernise operations, improve efficiency and reduce plastic use in beverage packaging.

Executive Chairman James Rawle said the upgrade forms part of a broader effort to digitise production and improve operational performance while lowering the amount of plastic used in the company’s beverage products.

“We’re at the cutting edge now, so we are using less plastic. There are efficiencies on the plastics in terms of price, and there’s a great collateral effect that you’re throwing away less plastic, so you are losing less energy all along the supply chain, and that will translate into better margins,” Rawle said during a recent investor briefing.

The installation of the new system began in September and took approximately three months to complete, replacing an ageing production line at the company’s beverage plant.

While the transition required adjustments to the production schedule, the company said the upgrade did not result in job losses, noting that the more advanced digital system requires workers with higher technical skills.

“It doesn’t impact employment, because what we are doing is upskilling people. You need a different level of technicians to deal with these digital installations,” Rawle said.

The installation process was one of several factors affecting the company’s revenue performance during the period. LASCO Manufacturing reported third-quarter revenue of $3.18 billion, down from $3.29 billion in the corresponding period last year.

Net profit for the quarter rose to $698 million, up 5.4 per cent from $662 million in the corresponding period last year. For the nine months ended December, LASCO Manufacturing recorded $9.28 billion in revenue, a 2.3 per cent decline compared with the same period last year. Gross profit margin improved to 37.9 per cent from 37.4 per cent in the prior year, reflecting tighter cost management during the period.

Despite the short-term disruption caused by the installation process and ongoing supply chain pressures, the company said the new production system is expected to support improved efficiency and stronger margins over time.

“We’re not in the cost-cutting business; we’re into cost optimisation, and we’re looking for efficiency,” Rawle said.

Beyond upgrading its production systems, LASCO Manufacturing is also expanding its growth strategy through product innovation and new market opportunities.

“We’re looking for new additions to the line and actively pursuing a number of opportunities to innovate, and we have products in the pipeline,” Rawle said.

Exports are expected to play a larger role in the company’s growth strategy as it expands distribution in international markets.

The company did not disclose the current share of revenue generated from exports, nor did it provide data on export volumes, production capacity of the new line, or packaging output levels.

LASCO Manufacturing has recently added three distributors in the United States and expects stronger demand among Caribbean Diaspora communities, particularly for products such as LASCO Food Drink and LaSoy.

The company aims to triple export sales in the medium term while expanding its presence across the Caribbean and exploring opportunities in Central American markets including Guatemala, Nicaragua, Honduras, and Panama.

At the same time, the company continues to monitor external pressures that could affect its supply chain and production costs, including geopolitical tensions in the Middle East that could influence energy prices and supplier stability.

To manage supply risks, LASCO Manufacturing has also been maintaining higher inventory levels, a strategy adopted during the COVID-19 pandemic to cushion against potential disruptions.

However, replacing those inputs at higher prices could eventually lead to price increases. The company is also monitoring the potential impact of proposed taxes on sugary drinks at the manufacturing level.

“We are making representation. I don’t know if anything will change. So we understand the position that the budget articulates; it is how we can operate optimally in that scenario,” Rawle said.