Lasco Distributors to expand warehousing for pharmaceuticals

 


Lasco Distributors Limited has secured a loan in the amount of $381.5 million for the acquisition of an additional pharmaceutical warehousing space.


Management asserts that the company’s healthcare (pharmaceutical) business continues strong performance, delivering growth in all key categories and channels.

Lasco Distributors is a marketing and distribution company for food, consumer, personal care and pharmaceutical products for local and international brands as well as its own private brands. Lasco’s two divisions are the consumer goods and pharmaceuticals.

The consumer division is located at White Marl, St. Catherine, a 25-acre property with over 100,000 sq. ft. of offices and warehouse space.

For the nine months ended December31, 2024, Lasco Distributors grew revenue by 3.8 per cent to $22.7 billion, an increase of $841 million over the previous year. 

Management notes that all divisions grew, with the pharmaceutical and export divisions delivering double digit growth year-to-date. However, net profit declined by 12.5 per cent to $1.05 billion.

While the food and beverage businesses continue to deliver growth driven by strong demand for core products, management said that supply disruptions experienced by some categories in the earlier part of the year weighed on their year-to-date results.

The hygiene (home care and personal care) portfolio saw a slowdown in home care compensated for by growth in leading personal care brands.

The company’s operating expenses for the nine months were $2.9 billion, an increase of 7.2 per cent, driven mainly by an increase in sales and promotions, staff-related expenses, technology and depreciation.

The operating expense ratio was 12.6 per cent of revenue, an increase from 12.2 per cent the year before.

For the quarter ended December 31, 2024, the company's revenue increased by 5.7 per cent, or $418 million, over the prior year.

Other income was impacted by a reduction in commission income and an increase in foreign exchange losses, resulting in a decrease in operating profit and net profit.

The operating expenses to revenue ratio decreased from 12.4 per cent to 12.0 per cent as measures to control expenses are being implemented.

Operating profit decreased by 15.4 per cent to $431 million. Cash provided from Operating activities of $108 billion.

Total assets at December 31, 2024, stood at $17 billion, an increase of 14.3 per cent compared to the same period in 2023.

Inventories increased by $1 .1 billion or 27.3 per cent to close at $5.3 billion as a result of contingency actions taken to ensure product availability in the short term. Receivables decreased by 605 per cent to $4.7 billion, compared to the previous year.

Cash and short-term investments together closed at $3.8 billion, an increase of 20.7 per cent compared to 2023. Payables closed the period at $6.1 billion, an increase of 17 per cent over 2023. Shareholders' equity closed at $10.2 billion, an increase of $962 million or 10.4 per cent above the previous year.

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