February 11, 2025

LASCO Distributors Limited (LASD)

Unaudited Financials for the Nine Months Ended December 31, 2024:

LASCO Distributors Limited (LASD) reported a 4% increase in revenue, totalling $22.70 billion for the nine months ended December 31, 2024, compared to $21.86 billion in the corresponding period last year. Revenue for the third quarter increased by 6%, closing at $7.73 billion compared to $7.31 billion for the comparable quarter of 2023.

Cost of sales amounted to $18.69 billion (2023: $17.90 billion), representing a 4% year-over-year increase. Consequently, gross profit increased by 1% to $4.01 billion compared to $3.96 billion for the nine months ended December 31, 2023. The company booked a gross profit of $1.35 billion for the third quarter versus $1.32 billion reported for the similar quarter of 2023.

Operating expenses for the nine months ended December 31, 2024, amounted to $2.85 billion, a 7% increase relative to $2.66 billion reported in 2023.

Profit from operations for the nine months ended December 31, 2024, amounted to $1.31 billion, a 13% decrease relative to $1.51 billion reported in 2023. Profit from operations for the third quarter amounted to $431.02 million (2023: $509.31 million). Finance costs totalled $8.88 million, a 2,286% increase from the corresponding period last year (2023: $372,000).

Profit before taxation for the nine months ended December 31, 2024, amounted to $1.30 billion, a 14% decrease relative to $1.51 billion reported in 2023. Profit before taxation for the third quarter amounted to $423.81 million (2023: $509.18 million).

Taxation for the nine months ended December 31, 2024, decreased by 17% to $255.37 million (2023: $309.12 million). Net profit for the nine months amounted to $1.05 billion, a 13% decrease from the $1.20 billion reported in 2023. For the third quarter, net profit was $329.56 million (2023: $404.38 million).

Total comprehensive income for the nine months ended December 31, 2024, amounted to $1.07 billion, a 10% decrease relative to $1.19 billion reported in 2023. Total comprehensive income for the third quarter amounted to $355.19 million (2023: $398.21 million).

Consequently, earnings per share for the nine months amounted to $0.30 (2023: EPS: $0.34), while earnings per share for the quarter totalled $0.09 (2023: EPS: $0.11). The twelve-month trailing EPS was $0.37, and the number of shares used in these calculations was 3,525,702,702.

Notably, LASD’s stock price closed the trading period on February 11, 2025, at $4.26, with a corresponding P/E ratio of 11.58x.

Balance Sheet Highlights

The company’s assets totalled $17.04 billion (2023: $14.90 billion). This increase in total assets was attributable to inventories, which amounted to $5.29 billion (2023: $4.16 billion). Property, plant, and equipment also contributed to the increase, equating to $2.50 billion (2023: $1.97 billion).

Shareholders’ equity was $10.21 billion (2023: $9.25 billion), representing a book value per share of $2.90 (2023: $2.62).

Disclaimer:

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.