My Thoughts on Technology and Jamaica: How LASCO Manufacturing Limited Drinks Future is Sugarless and Health-Conscious

Thursday, August 16, 2018

How LASCO Manufacturing Limited Drinks Future is Sugarless and Health-Conscious

“The positive out-turn for the quarter reflects growth in volumes, improved operational efficiencies, streamlining and cost controls …..”

Managing Director James Rawle, commenting on LASM (LASCO Manufacturing Limited) performance

LASM (LASCO Manufacturing Limited) is doing well this year as they are on a profitability roll.

This is especially true for their manufacturing of drink products as noted in the article “Lasco pushes for greater share of food drink market”, published Thursday, August 16, 2018, The Jamaica Observer.

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LASM has two (2) sections to their plant:

1.      Liquid plant - making soy-based drinks, juice, drinks and water
2.      Dry Plant - - making soy-based powdered drinks

The strong sales from LASM are from the sale of the following four products on their three production lines in the Liquid Plant:

1.      LASCO iCool range of water and juice drinks
2.      LASCO iDrade, a hydration drink
3.      Lyrix,  a carbonated beverage
4.      Konka, energy drink similar to Boom

I've personally consumed Konka, as can be seen from the bottle in my hand below.

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Based on its ingredients, it is not much different from Boom, having the same active ingredients including Taurine and Caffeine.
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Shushana Levy, a Jamaican YouTuber, has tested out Lasco Lyrix, Konka and iCool and gives her expert opinion in this natural, unscripted video promo of their products.

Now on to their Dry Products Division, which I call the Dry Plant! Their Dry Plant makes many products that I personally like to consume:

1.      LASCO Lasoy
2.      LASCO Enriched Milk Powder
3.      LASCO Oats Porridge Mixes
4.      LASCO Nutrify, a high protein meal replacement.

So how are they doing profit wise?

LASCO Manufacturing Limited Profitability - Shushana Levy says the Drinks are Driving Profits

Managing Director James Rawle was apparently quite pleased with the numbers, quote: “Sales are as expected, even as volumes continue to grow in a competitive market......The margin improvement is attributable to volume growth, sales mix and improved operational efficiencies”.

LASM (LASCO Manufacturing Limited) recorded the following strong numbers in Q3 of 2018:

1.      JA$237 million Net Profit
2.      JA$134 million in Q3 of 2017
3.      77% growth in Net Profit
Revenue had also increased when compared to the same period last year:

1.      JA$1.7 billion for Q3 of 2018
2.      JA$1.5 billion for Q3 of 2017
3.      35% Gross Profit Margin in Q3 of 2018
4.      32% Gross Profit Margin in Q3 of 2017

Their administrative expenses remained stable.

1.      JA$308 million administrative expenses in Q3 of 2018
2.      18% expense to sale ratio in Q3 of 2018
3.      20% expense to sale ratio in Q3 of 2017

Their Total assets, Trade and other receivables and Trade payables have seen moderate gains:

1.      JA$8.3 billion in Total assets in Q3 of 2018
2.      12% increase in Total assets in Q3 of 2018 over Q3 of 2017
3.      JA$2.1 billion in Trade and other receivables in Q3 of 2018
4.      30% increase in Total assets in Q3 of 2018 over Q3 of 2017
5.      JA$937 million in trade payables in Q3 of 2018
6.      10% increase in Q3 of 2018 over Q3 of 2017

So it looks like Shushana Levy, our YouTube Reviewer, is on to something here.

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Clearly, their new Drinks lines are as good as Sushana Levy, our YouTube Reviewer, has pointed out in her video. So what is the future for LASM?

LASCO Manufacturing Limited Profitability - The future is Sugarless and Health-Conscious

LASM now hopes to double net profit over the next two quarters.

LASM has just completed their 65,000-square foot warehousing facility. They're also launched new flavours from its flagship product LASCO Vanilla Food Drink in September 2017.

The recent trend towards reducing sugar content in foods and beverages also benefitted the company as it is also a way to avoid future taxation from Government over Sugar as noted in the article “Lasco Manufacturing Enters Carbonated, Energy Drink Markets With Two New Brands”, Published Friday February 16, 2018 by Avia Collinder, The Jamaica Gleaner.

Their reduced sugar variant of LASCO Vanilla Food Drink and iCool juice drink being a part of the run on profits. LASM's carbonated beverage Lyrix and energy drink Konka, have also had solid export sales from the export market since their launch earlier this year.

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Nonetheless, LASM continued to invest heavily in marketing programmes such as this islandwide promotion drive for their products. Their brand building activities are being expanded in Q4 of 2018, with special attention to recently launched new products.

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For LASM, the future is definately Sugarless and Health-Conscious.

Here’s the link:

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