Big plans are in place for Lascelles Chin’s trio of companies for the 2016 Financial Year.

Addressing shareholders at the Mayberry Investor Briefing last earlier this year, the Chairman of the Lasco group of companies, including Lasco Distributors, LascoManufacturing and Lasco Financial Services indicated that there are major plans in the works for the company for 2016. He says among those plans are the expansion of the Financial services division’s list of offerings, introduction of new products to the market and the expansion of the distribution warehouse.

New Additions to the Market
Several new products, including four additional flavors of ‘Ice Dream’, are on stream to be introduced the market during this financial year. According to Lasco Manufacturing’s Managing Director, Robert Parkins, these are expected to come on line once the plant’s increased production capacity is achieved.

He says so far production capacity at the liquid plant is at its peak after the 2014/ 2015 US$5 million investment was made to improve equipment. Parkinssays during the 2015/2016 financial year an additional investment of US$4.5 million was spent on new equipment that is expected to double production capacity. “Several new products are scheduled to come on stream in this financial year once the increased production capacity is achieved.” he said.

For the Financial year under review, net profit generated was $826 million, a 35% increase over the previous year. Parkinssays overall gross profit margins were $2.38 million. He says this improvement was impacted by the provision of $133.7 million for deferred tax as the company has started to accrue for its tax liability.

However, Parkins says the company continues to perform remarkably well considering the “significant increase in expenses due to staff costs, equipment maintenance and interest charges from the expansion. He says it is the expectation that within the next year or two, both the liquid and powder operations will record exciting profits”. Overall, he says he is optimistic about the future of the Lasco Manufacturing plant and the anticipated growth in profit from the modifications underway.
Strengthening Operations, Pushing Sales
Lasco Distributor’s Peter Chin says the focus for this year will be on strengthening operational capabilities, service delivery and continuing to aggressively push to increase volumes.

In his audited financial report to shareholders for the year ended March 31, Chin indicated that key to the improvement of operational capabilities and service delivery will be the warehouse expansion project targeted to be completed in the new financial year. He says the completion of this project is expected to further bolster Lasco’s logistics handling capabilities. The Managing Director says there will also be improvements in internal processes, operational efficiencies and upgrading of the company’s technology platform.

For the year ended March 31, the company reported a net profit of $716.8M which represents an increase of 31% or $170.0M over the previous year. Revenues increased to $14.5B, a growth of 31.0% or $3.4B over prior year. Gross profit margin also saw a 33% increase to come in at $2.7B increased. Chin says this was propelled by Lasco Distributor’s “strategic drive to increase market share in key product categories”.

He says following the April 1 appointment of the company as Lasco Manufacturing’s exclusive distributor for all export markets, he is “excited at the tremendous opportunities for growth in the export business, and have begun expansion initiatives to grow the LASCO brand in current territories as well as expand into newer ones”.

In Pursuit Of Expansion
Meanwhile, the focus for Lasco Financial Services will be on pursuing expansionary activities as a strategy to achieving growth.

Managing Director Jacinth Hall Tracey says while new investments impacted expenses and cash flow, the company was able to record a 15.7% increase in profit before taxation for the Financial Year ended March 31, moving from $191M in 2015 to $220.9M for the period under review.
“During the financial year, we made significant investments to diversify our business lines. We added a cambio location in Port Antonio; in September our first business loans branch was launched and we closed the year with four (4) locations. We also launched our Telecoms Division with the distribution deal for Smart Phones and wearable devices. This investment impacted our expenses mainly due to a 77% increase (30) in staff complement to roll out the new locations and an aggressive marketing support to launch the telecoms business”, she said. The Managing Director continued, “We faced several challenges throughout the year especially in the Cambio and Remittance Industry; debanking was an ever present risk, one which we expect to continue into the immediate future.”

Tracey-Hall says as the company looks to the year ahead, plans are in place to “pursue our expansionary activities in our existing as well as new business lines as part of our strategy for growth”.