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Businessuite 2020 #1 Jamaica Junior Market Company by US$ Profit after Tax |
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NR |
NR |
NR |
NR |
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US$000 |
US$000 |
2020 |
2019 |
2018 |
2017 |
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Company |
2020/2019 |
2019/2018 |
1 |
1 |
4 |
1 |
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JA |
Lasco Manufacturing Limited |
$8,122 |
$8,431 |
The Business
LASCO Manufacturing was incorporated in October 1994.
The Company was formed by the merger of LASCO Foods (Successors) Limited and LASCO Foods Limited. The registered office of the Company is located at 27 Red Hills Road, Kingston 10, while the manufacturing units are located at White Marl, St. Catherine.
The Company was listed on The Jamaica Stock Exchange’s Junior Market in October 2010.
The Company has a long history of being the dominant Nutritious Powdered Beverage Company in Jamaica. Its scope was expanded in 2014 with entry into the Liquid Refreshing Beverages and Water segment of the market with a range of Juice Drinks and Water under the iCool Brand. The Company has grown in this latter segment to become a major player with an expanded range of products that enjoy wide distribution and consumer acceptance.
The brands in both the Powdered and Liquid segments are well established in export markets as well.
The powdered portfolio includes:
Food Drink
LaSoy Lactose Free
Porridge Mixes
Enriched Milk Powder
Readi-Milk Powder (Skimmed Milk)
Nutrify (High protein meal supplement)
The liquid portfolio includes:
iCool Juice Drinks
iCool Water
iCool Flavoured Water
iDrade (Re-hydration drinks)
Lyrix (Carbonated drinks)
Konka (Energy drink)
Business Strategy
Over the years the Company has consistently invested in plant, technology and people development to provide the capacity and know-how to expand its range of food and beverage products that are relevant to consumer needs and trends. As a result, the Company is well equipped and has the capability and flexibility to supply not current demand, but as well, to meet anticipated growth in the various market segments with affordable, innovative, high quality and nutritious products. This is well supported by an active and focused Research and Development programme, informed by consumer and market trends.
The strategy is underpinned by continuous improvement in operational efficiencies, organizational adaptations and waste elimination with application of technology, and people development being at the core.
Constant attention to our impact on the environment and the natural resources that we use remain an integral part of our strategy, as do food safety, and occupational health and safety. This is reflected in our engagement with industry players and Recycling Partners of Jamaica in the PET/HPDE Deposit Refund Scheme, our internal initiatives in waste reduction, packaging reduction which will reduce packaging waste, prudent water management, waste water treatment and certifications to international standards in the areas of food safety management, quality management systems and occupational health and safety.
Financial Results
The year ended March 31, 2019 was, as in the previous year, one of diverse challenges and multiple opportunities, reflecting the dynamic environment in which we operate.
On one hand, competitive activities continued to accelerate across all the categories in which we do business, while on the other, consumer demands and expectations continued to rapidly evolve with increasing emphasis on Nutrition, Health, general Well-being and Convenience. The regulatory framework also tightened as the authorities launched initiatives to protect the environment and the health and wellbeing of the population. We responded well to these issues, fully aware that the trends will continue, by accelerating the rate of internal change to develop an informed, agile and responsive organization fully equipped to exploit the opportunities presented. The results for the year validate our strategies and initiatives which will also provide the foundation for future growth.
Revenue for the year was $7.57B, an increase of $906M or 14% over the prior year. Gross Profit was $2.8B an increase of 20% over the prior year (2018: $2.3B). Gross margin improvement was 200 basis points.
Operating Profit was $1.26B representing an increase of $397M or 46% over 2018 ($861M).
Net Profit rose to $1.077B compared to $561M in the prior year, an increase of 92%. Earnings per share was $ 0.26 in 2019 compared to $0.14 in 2018. This out-turn was fuelled by volume and revenue growth, gross margin improvement and significant gains in operational efficiencies.
Capital Investments amounted to $588M (prior year $341M) with the main projects being the completion of a 65,000 square feet warehouse, expansion of the powder manufacturing operations and technology upgrades. These investments will bolster our efficiency drive and generate important savings.
Total assets at year-end were $8.79B an increase of 14% over prior year with Non-current Assets increasing by 7% to $5.07B. Current assets were $3.7B compared to $3.0B in 2018 an increase of 24% while current liabilities were
$1.46B.
An interim dividend of $0.038 per share, was paid to shareholders on August 31,2018. Shareholder’s equity at year end was $5.8B, 19% above prior year and return on equity was 18% compared to 11% in 2018.
Extracted from Managing Director report
James E. D. Rawle
Managing Director
More information
https://www.jamstockex.com/wp-content/uploads/2019/07/LML_Annual_Report_2019.pdf