5 months ago
24
Two of the three Lasco-affiliated companies listed on the Jamaica Stock Exchange made higher profit for the financial year ending March 2024, but the financial arm struggled a bit.
Lasco Distributors Limited’s profit totalled $1.4 billion, up seven per cent year-on-year, while its revenue grew 10 per cent to $29.2 billion.
Lasco Manufacturing Limited’s profit totalled $2.3 billion, up 14.5 per cent year-on-year, while its revenue grew seven per cent to $12 billion.
Lasco Financial Services Limited’s profit totalled $162 million, 24 per cent lower than the previous year, while its revenue dipped six per cent to $2 billion.
Challenges remain concerning inflation, along with delays at ports, global factories, and shipping routes, which lead to supply chain bottlenecks.
“We are aware of the continued and potential negative impacts on the global supply chain of current geopolitical and climate-related issues, among other potential risks, and will remain focused and agile in executing our strategies and take appropriate mitigatory measures to minimise and manage negative impacts on the business,” said James Rawle, managing director of Lasco Manufacturing and executive chairman of all three companies.
“Organic, profitable growth with progressive margin improvement remains our priority,” Rawle said.
Lasco grew the sales of its nutrition, food, and beverage products, which are mainly marketed through Lasco Distributors. This includes its flagship branded powdered drink mixes and iCool beverages. The growth was the result of increased investment in marketing activities, supported by improved route-to-market operations, the company said.
Lasco Distributors also represent a number of local and foreign brands, including Salada Foods Jamaica, which mainly makes coffee products.
The outlook for Lasco Distributors remains positive.
“We will prioritise volume-led, organic growth, while improving margins to fund increased marketing investments in the domestic and international markets,” said Managing Director John De Silva.
As for Lasco Financial, during the year, the microfinance and money services company implemented strategies to grow in the future, including investment in new back-office technology. It also slashed its long-term debt from $1.24 billion to $705 million. And its debt servicing, or finance costs, dipped by about a quarter to $89 million from $117 million.
Lasco Financial delivered “fairly good financial results” despite difficult industry developments, said Managing Director Jacinth Hall-Tracey.
“Going forward, we anticipate an improved performance based on the promotional activities to stimulate growth,” said Hall-Tracey. “Great focus is being placed on this business, with the expectation that overall shareholder value will be increased,” she said.
Lasco Financial’s loan portfolio was flat at $1 billion in March. After adjusting for fees and loan losses, the portfolio dips to $850 million from $900 million a year earlier.
All three Lasco affiliates entered the stock market at the same time in October 2010 as junior listings on the Jamaica Stock Exchange, and have grown their operations substantially over the time span. At the end of March 2024, both Lasco Manufacturing and Lasco Distributors migrated to the JSE Main Market.
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