Lasco three report J$309m HY profit
Published:Wednesday | November 3, 2010 | 12:00 AM
The three Lasco companies that went public in September have each reported half-year net profit for the period ending September, amounting to more than J$300 million, but only two of the three grew their bottom lines.
Lasco Distributors Limited, in the business of pharmaceuticals and consumables, gained eight per cent at the bottom line.
Net profit rose J$90 million to J$97 million, on the back of stronger revenues which rose 10 per cent to J$3.2 billion.
The company's cost of business as well as operating expenses also rose.
"Management will continue to have a two-pronged approach in managing expenses; cost control and cost reduction initiatives, whilst increasing revenue," said Anthony Chang, managing director of Lasco Distributors.
Lasco Manufacturing reported total revenue of J$1.43 billion, compared to J$1.24 billion in the previous year.
Pressing ahead with expansion
The manufacturing company said it is pressing ahead with expansion plans to bring about even more improvements in performance.
"The company is pressing ahead with its strategic plans to expand its export markets and manufacturing facilities, and thereby will reduce operational costs, diversify the product and market portfolio with consequent increases in revenue and profitability," said Dr Eileen Chin, managing director of Lasco Manufacturing Limited.
"New markets have been identified and contractual agreements are under discussion with prospective distributors."
Lasco Manufacturing's net profit almost doubled from J$109 million to J$201 million.
Lasco Financial Services Limited also grew revenue, by 12 per cent, but due to "expansionary activities", the company said, its profits contracted by J$16 million to J$11 million.
But with plans to increase product range and strategies to reduce cost, the company hopes to regain lost grounds in the coming months.
Increasing product offerings
"Over the next two quarters, the company will increase its efforts at expanding its product offerings while engaging in cost-reduction strategies. These new products when launched will enhance market share, provide diversification and add to profitability," said Jacinth Hall Tracey, managing director of Lasco Financial Services.
"We are now formalising our arrangements with an institution which will see them adding about ten locations from their group to Lasco MoneyGram agent network."
Since listing in October, all three companies have seen active trading on the market.
Lasco Manufacturing's stock has gained 32 per cent to close Tuesday at J$3.05; Lasco Distribution is up 22 per cent at J$3.30; while Lasco Financial lags with only an 8 per cent gain to J$2.70.
Each stock debuted on the JSE Junior Market at $2.50.