“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.
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.
Based
on its ingredients, it is not much different from Boom, having the same active
ingredients including Taurine and Caffeine.
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.
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.
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.
For
LASM, the future is definately Sugarless and Health-Conscious.
Here’s
the link:
No comments:
Post a Comment