LASCO Manufacturing Limited (LASM)

Unaudited financials for the six months ended September 30, 2026:

LASCO Manufacturing Limited (LASM), for the six months ended September 30, 2026, reported a 6.7% increase in revenue, totalling $6.51 billion, compared to $6.11 billion for the corresponding period in 2025. Second-quarter revenue increased by 6.2% to $3.38 billion, up from $3.18 billion in Q2 2025.

Year to date, Cost of Sales amounted to $3.83 billion (2025: $3.77 billion), representing a 1% year-over-year increase. Consequently, gross profit rose by 15% to $2.69 billion, compared to $2.34 billion for the same period last year, and gross profit margin expanded to 41.25% from 38.26%. For the second quarter, gross profit was $1.46 billion, versus $1.21 billion in Q2 2025, a 20% increase, with the quarterly margin widening to 43.24% from 38.11% as second-quarter cost of sales fell 3% to $1.92 billion (2025: $1.97 billion) against higher revenue.

Other Operating Income declined by 2% to $199.53 million (2025: $202.96 million), while Operating Expenses increased by 16%, moving from $815.60 million in 2025 to $949.01 million in the review period. Management attributes the increase primarily to temporary increases in logistics and insurance costs, together with higher marketing investment, and the expense-to-sales ratio rose to 14.57% from 13.36%. As a result, operating profit for the six months amounted to $1.94 billion, a 12% increase relative to $1.72 billion reported in 2025, with the operating margin improving to 29.74% from 28.22%. For the second quarter, operating profit was $1.05 billion, a 19% increase from $881.44 million.

Finance Costs for the six months were $38.02 million, a significant increase of 169% compared to $14.15 million in 2025. For the second quarter, finance costs totalled $18.91 million (2025: $12.56 million). Profit before Tax stood at $1.90 billion, up 11% from $1.71 billion in the prior year; second-quarter profit before tax was $1.03 billion, up 19% from $868.88 million.

The tax charge incurred for the six months amounted to $417.50 million, a 10% increase from $378.47 million in 2025. For the second quarter, tax expense was $225.40 million (2025: $156.77 million).

Net Profit for the six months increased by 11% to $1.48 billion (2025: $1.33 billion), a net margin of 22.74%. For the second quarter, net profit was $806.79 million, a 13% increase from $712.10 million in Q2 2025. Unrealized gains on financial instruments for the period were $22.05 million, compared to unrealized losses of $46.63 million in 2025; for the second quarter, unrealized gains amounted to $10.06 million (2025: unrealized losses of $29.49 million).

Total Comprehensive Income for the six months ended September 30, 2026, was $1.50 billion, a 17% increase over $1.28 billion in 2025. For the second quarter, total comprehensive income was $816.85 million (2025: $682.61 million).

Consequently, Earnings Per Share for the six months amounted to $0.36 (2025: EPS: $0.32), while Earnings Per Share for the quarter totaled $0.19 (2025: EPS: $0.17). The twelve-month trailing EPS was $0.71, and the number of shares used in these calculations was 4,147,913,151.

Notably, LASM’s stock price closed the trading period on November 10, 2026, at a price of $7.85 with a corresponding P/E ratio of 11.17x.

Balance Sheet Highlights

The company’s assets totaled $22.49 billion (2025: $19.56 billion), reflecting a 15% increase year-over-year.

The movement in total assets was mainly attributable to a 96% increase in ‘Cash and Bank Balances’ to $3.73 billion (2025: $1.90 billion), a $912.72 million increase in ‘Short Term Investments’ to $5.61 billion (2025: $4.69 billion), and a 20% increase in ‘Property, Plant & Equipment’ to $5.22 billion (2025: $4.37 billion). ‘Inventories’ increased by 18% to $3.11 billion (2025: $2.64 billion), while ‘Trade and Other Receivables’ decreased by 24% to $3.84 billion (2025: $5.03 billion). Current assets rose 15% to $16.57 billion (2025: $14.46 billion), and non-current assets rose 16% to $5.92 billion (2025: $5.10 billion). Cash and bank balances inclusive of short-term investments totalled $9.33 billion, an increase of $2.74 billion year over year.

Current liabilities increased by 33% to $2.91 billion (2025: $2.19 billion), led by a 44% rise in ‘Trade Payables’ to $2.37 billion (2025: $1.64 billion). The CIBC Caribbean long-term loan stood at $956.27 million (2025: $978.00 million) after principal repayments of $21.73 million, and deferred taxation rose 22% to $1.06 billion (2025: $867.08 million). An interim dividend of $0.20 per share, totalling $829.58 million, was paid on August 28, 2026.

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