lasco distributors limited€¦ · the board of directors present quarter unaudited financial...

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LASCO DISTRIBUTORS LIMITED

UNAUDITED 2nd QUARTER FINANCIAL REPORT

FOR PERIOD ENDED SEPTEMBER 30 2014

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MANAGING DIRECTOR’S REPORT STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION STATEMENT OF CASHFLOWS STATEMENT OF SHAREHOLDERS EQUITY NOTES TO THE FINANCIAL STATEMENT

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REPORT TO THE SHAREHOLDERS

The Board of Directors present second quarter unaudited financial results ending September 30, 2014 for LASCO Distributors Limited. The three month period ending September 30, 2014 showed an increase in revenues of 16.6%, operational expenses to sales showed was 13.9% a reduction compared to 14.1% the previous period. Net profit was $112.5M a reduction of 18.9% compared to the same period last year. For the six month period ending September 30, 2014 revenues for the company increased to $5.10B an increase of 10.0% and total comprehensive income was $202.9M, a reduction of 33% compared to corresponding period last year. Gross Profit margin was 17.9% compared to 19.9% of the comparative period last year. In an environment where there is devaluation in the local currency and lower consumer spending power, the company continues to deploy robust marketing and promotional activities to drive demand. Operating expenses increased by 17.2% to $738.0M compared to the same period last year. This was due to the strengthening of the field force and marketing activities for new product launches. In a challenging business environment the company continues to be aggressive in building market share for its core products and at the same time expanding the portfolio with the launch of several new products within the period. This direction required the implementation of measures to manage costs but at the same time investing in key marketing activities to strengthen market position and increase brand awareness. The company continues to be aggressive in its efforts to bring new products to market and remains optimistic in the pipeline of our core product range and principal brand representation.

In August 2014 LDL launched in trade the LASCO iCool Water, the first bottled beverage from the new LASCO Manufacturing Ltd. Plant. The attractively packaged, bottled water features an environmentally friendly, low density plastic bottle, with a sleek and curved design. The brand, under the tagline ‘iCool fi Life’, is positioned as trendy, new, refreshing and economical to consumers. Launch activities included exclusive water sponsorship at Dover Raceway, as well as road blitzes at Caymanas

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Crossing, Half Way Tree and Downtown Kingston. At the end of September 2014, trade sales commenced for other iCool products – juices, cran waters and a value packaged 6L water bottle.

At the end of the second quarter ending September 30th, 2014 Total Assets grew by 17.4% to $3.93B compared to $3.35B in the corresponding period last year. Property, plant and equipment grew by 47.8% to $310.8M, this is primarily due to operational and infrastructure improvements. For current assets, Inventories increased by $312.2M to $1.31B, this is mainly due additional inventory from new business agreements. Short Term Deposits increased by $320.6M to $659.5M and Cash and Bank Balances decreased to $191.3M from $530.2M. Trade and Other Receivables was $1.74B an increase of $274.1M over the prior year (September 2013). There was also a related increase in Trade and Other Payables, an increase of $113.3M ending at $1.60B.

In August 2014, eight female students were awarded scholarships totaling $500,000 towards their secondary education, courtesy of the Curves Brand of feminine hygiene products. The Curves GSAT Scholarship was established to help empower young women across the island by directly aiding their educational pursuits. The top performing female students were selected from each of the Ministry of Education’s (MoE) six regions, in addition to one student each from the schools of the LASCO/ MoE Principal of the Year, Windward Road Primary & Junior High School and the LASCO/MoE Teacher of the Year, John Rollins Success Primary School in St. James. LASCO Distributors sponsored Social Development Commission National Community 2014 T/20 cricket competition, which came to a dramatic finish, when Race Course defeated Old Harbour. Four hundred teams participated in the community cricket competition, with over 15,000 spectators attending the preliminary, parish and national matches, held between April and August 2014, across 11 parishes. For the corporate programmes, in July 2014 at the Nurse of the Year Awards Kingston Public Hospital’s Shashana Lawrence emerged LASCO/NAJ Nurse of the Year 2014/2015. We wish to thank our directors, management and staff for their commitment and hard work. We are also appreciative for the confidence and support of our consumers, customers and shareholders.

Peter M. Chin MANAGING DIRECTOR

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Lasco Distributors Ltd.Statement of Comprehensive IncomeSix Months Ended September 30,2014

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

3 months to 3 months to 6 months to 6 months to

Note September

30 2014 September 30

2013 September

30 2014 September 30

2013

$'000 $'000 $'000 $'000Revenue 2,711,111 2,324,508 5,096,238 4,634,269 Cost of Sales (2,236,383) (1,867,364) (4,186,253) (3,714,328)

Gross Profit 474,728 457,144 909,985 919,941 Other Operating Income 3 15,462 9,654 33,494 16,750

Operating Expenses (377,216) (327,815) (738,029) (629,752)

Profit from Operations 112,974 138,983 205,450 306,939 Finance Cost (433) (293) (2,589) (4,064)

Profit before Taxation 112,541 138,690 202,861 302,875

Taxation 4 0 0 0 0

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 112,541 138,690 202,861 302,875

Number of Stocks Units Issued 3,372,931 3,366,431 3,372,931 3,366,431 Earnings per Stock Unit During the Period 5 $0.03 $0.04 $0.06 $0.09

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Statement of Cash FlowsSix Months ended September 30, 2014(Unaudited)

Sept 30 2014 Sept 30 2013 $'000 $'000

SOURCES/(USES) OF CASH

Operating Activities Profit for the Period 202,861 302,875

Items not affecting cash and changes in non-cash working capital components (219,025) 375,256

Cash used in / provided by Operating Activities (16,164) 678,131

Cash used in Investing Activities (116,295) (331,850)

Cash provided by Financing Activities 18,657 10,703

Net (Decrease)/Increase in Cash and Cash Equivalents (113,802) 356,984 Cash and Cash Equivalents at the beginning of Period 305,079 173,204 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 191,277 530,188

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Statement of Changes in Stockholders' EquitySix Months ended September 30,2014(Unaudited)

Share Capital Capital Reserve Retained Earnings Total$'000 $'000 $'000 $'000

Balance at April 1, 2014 219,191 75,387 2,102,559 2,397,137Share Option 6,500 6,500Total Comprehensive Income for the Period 0 0 202,861 202,861

Balance at September 30, 2014 225,691 75,387 2,305,420 2,606,498

Share Capital Capital Reserve Retained Earnings Total$'000 $'000 $'000 $'000

Balance at April 1, 2013 219,191 75,387 1,592,523 1,887,101

Total Comprehensive Income for the Period 0 0 302,875 302,875

Balance at September 30, 2013 219,191 75,387 1,895,398 2,189,976

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Notes To The Financial Statements Six Months Ending September 2014

LASCO DISTRIBUTORS LIMITED Page 7

1. BASIS OF PREPARATION These financial statements have been prepared in accordance with and comply with International Financial Reporting Standards (IFRS), and have been prepared under the historical cost convention, as modified by the revaluation of certain fixed and financial assets. They are also prepared in accordance with the provisions of the Jamaican Companies Act. The preparation of financial statements to conform to IFRS requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities, contingent assets and contingent liabilities at the end of the reporting period and the revenue and expenses during the reporting period. Actual results could differ from those estimates. The estimates are reviewed on an ongoing basis and any adjustments that may be necessary would be reflected in the year in which actual results are known. The accounting policies followed in the preparation of the financials are consistent with those used in the audited financial statements for the year ended 31 March 2014. These financial statements are presented in Jamaican dollars unless otherwise indicated.

2. IDENTIFICATION AND PRINCIPAL ACTIVITES: (a) LASCO Distributors Limited is a limited liability company incorporated and

domiciled in Jamaica. The registered office of the company is 27 Red Hills Road, Kingston 10.

(b) The principal activity of the company is the distribution of pharmaceutical and consumable items.

(c) The company’s shares were listed on the Junior Market of the Jamaican Stock

Exchange on 12 October 2010.



3. OTHER INCOME

Other Income represents commission earned from services which have been provided and interest income.

4. TAXATION

Remission of income tax: The company's shares were listed on the Junior Market of the Jamaica Stock Exchange, effective 12 October 2010. Consequently, the company is entitled to a remission of taxes for ten (10) years in the proportions set out below, provided the shares remain listed for at least fifteen (15) years:

Years 1 to 5 100% Years 6 to 10 50%

The financial statements have been prepared on the basis that the company will have the full benefit of the tax remission.

5. EARNINGS PER STOCK UNIT Basic earnings per stock unit is calculated by dividing the net profit attributable to stock holders by the number of Ordinary Stock Units in issue during the period.

2014 2013

$’000 $’000

Net Profit attributable to Stockholders 202,861 302,875 Number of Ordinary Stocks in issue 3,372,931 3,366,431 Basic earnings per stock unit $0.06 $0.09



6. PROPERTY, PLANT AND EQUIPMENT – ( At Cost Less Depreciation )

2014 2013 $’000 $’000

310,807 210,354 The movement in Property, Plant and Equipment represents additions to Computers, Fixtures and Fittings as a result of expansion purposes.

7. SHORT TERM INVESTMENT 2014 2013 $’000 $’000 Short-term Investment 659,511 338,943 This represents interest bearing amounts invested with financial institutions for a period of no less than three (3) month but no greater than one (1) year.

8. CASH AND BANK BALANCES 2014 2013

$’000 $’000 Cash and Bank Balances 191,277 530,188



9. SHARE CAPITAL

2014 2013 $’000 $’000 Authorised - 3,630,000,000 Ordinary Shares of no par value Stated Capital- Issued and fully paid- 3,372,931,150 Ordinary Shares of no par value 225,691 219,191 At an Extraordinary General Meeting held on 26 June 2013, the Shareholders of LASCO Distributors Limited approved a resolution allowing each share of no par value whether issued or un-issued to be sub-divided into 10 shares. The Authorised and Issued shares indicated above reflect the stock split approved by the shareholders. Stock Options were exercised in the amount of 6,500,000 shares at a par value of $1.00 per share in September 2014.

lasco distributors limited€¦ · the board of directors present quarter unaudited financial...

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