LASCO DISTRIBUTORS LIMITED THIRD QUARTER UNAUDITED FINANCIAL REPORT

Transcription

1 LASCO DISTRIBUTORS LIMITED THIRD QUARTER UNAUDITED FINANCIAL REPORT DECEMBER 2015

2 TABLE OF CONTENTS Report to the Shareholders Statement of Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Shareholders Equity Notes to the Financial Statements

3 REPORT TO THE SHAREHOLDERS Third Quarter Results The Board of Directors of LASCO Distributors Limited is plased to present the unaudited results for the nine months ended December 31,2075. The Company earned year-to-date profit after tax of million, which was 50% or million more than the same period last year. Profit after tax for the quarter was 52t2.5m or LOYo over prior year. Total year-to-date revenues of billion were 36%o or SZ.g billion over prior year, and was mainly driven by growth in new business. Revenues for the quarter were S4.0 billion, a 36% growth over prior year. The Company eiarned other operating income, which includes commissions from Principals and lnterest on lnvestments of S82.5 million, an increase of t9% compared to the prior year amount of S59.1 million. Operating expenses incurred in the period were S1.2 billion, an increase of t7yo, and reflects inflationary increases as well as costs related to our growth strategy for new Principal lines of business. Management remains committed to containing operating costs, in spite of the challenging economic environment. Total Assets at the end of the period stood at Sz.t billlon, an increase of S2.5 billion or 54% over prior year. This growth was driven mainly by additional inventory arising from our new business lines, and capital expenditure relating to our Warehouse expansion. Accounts Receivable balances grew by 25% over prior year to close at S2.7 billion, while Accounts Payable balances grew by 81%to close at Sg.+ Uitlion. Cash and bank balances at the end of the period were million, a t82o/o growth over prior year. Shareholders' equity stood at S3.4 billion, or 26% growth over prior year, while the return on equity for the nine month period was27%o compared to 22% in the same period last year. ln keeping with our philosophy of corporate social responsibility, we hosted the LASCO Teacher and Principal of the Year awards in November. Mrs. Nickashie Hardware of the York Castle High School in St. Ann and Mrs. Kandi-Lee Crooks Smith of Allman Town Primary School copped the coveted titles of Teacher and Principal of the Year respectivelr4 The LASCO Releaf Environmental Awareness Program (LASCO REAP) was launched in October and the }OL4(2OLS winning school was John Rollins Success Primary, under the theme 'Pick Up the Pace to Zero Waste'. Over one thousand students were in attendance from five different schools. This is the fourth year of the REAP program, which to date has reaped success in increasing environmental awareness in primary schools across Jamaica through the generation of creative recycling strategies. We would like to thank all our customers, shareholders and team members for their continued invaluable support during this period, and look forward to an exciting year ahead. Peter Chin MANAGING DIRECTOR

4 LASCO Distributors Limited Statement of Comprehensive Income For the Nine months ended December 31, 2015 (Unaudited and expressed in Thousands) Unaudited Unaudited Unaudited Unaudited 3 months to 3 months to 9 months to 9 months to 31 Dec Dec Dec Dec 2014 J$'000 J$'000 J$'000 J$'000 Revenue 3,955,262 2,899,258 10,900,714 7,995,496 Cost of Sales (3,310,985) (2,362,708) (9,127,079) (6,548,961) Gross Profit 644, ,550 1,773,635 1,446,535 Other Operating Income/(Loss) 52,679 35,932 82,516 69,055 Operating Expenses (458,037) (378,552) (1,237,033) (1,117,153) Profit from Operations 238, , , ,437 Finance Costs (298) (987) (1,077) (3,576) Profit before Taxation 238, , , ,861 Taxation (26,077) 0 (26,077) 0 Net Profit for the period 212, , , ,861 Other Comprehensive Income: Items that will or may not be reclassified to Profit or Loss - Share option plan 12, ,000 0 Total Comprehensive Income for the Period 224, , , ,861 Earnings per stock unit Basic and Diluted

5 LASCO Distributors Limited Statement of Financial Position as at December 31, 2015 Unaudited Unaudited Audited Notes 31 Dec Dec Mar 2015 $'000 $'000 $'000 ASSETS: Non-Current Assets Property, Plant & Equipment 888, , ,541 Current Assets Inventories 2,392,338 1,443,498 1,896,784 Trade and Other Receivables 4 2,693,009 2,153,356 2,085,493 Related Companies 27,862 28,970 14,185 Taxation recoverable 19,226 15,036 16,126 Short term Investments 227, , ,423 Cash and Bank Balances 848, , ,025 Total Current Assets 6,208,760 4,250,122 4,746,036 TOTAL ASSETS 7,096,927 4,599,441 5,334,577 EQUITY AND LIABILITIES: Current Liabilities Payables 5 3,434,299 1,901,161 2,449,434 Taxation Payable 26, Bank Overdraft ,182 Total Current Liabilities 3,460,579 1,901,161 2,451,616 Non-Current Liabilities Long Term Debt 232, Shareholders' Equity Share Capital 6 233, , ,373 Revaluation reserves 75,387 75,387 75,387 Other reserves 47, ,129 Retained Earnings 3,047,251 2,396,202 2,548,072 Total Shareholders' Equity 3,403,640 2,698,280 2,882,961 TOTAL EQUITY AND LIABILITIES 7,096,927 4,599,441 5,334,577 Approved for issue by the Board of Directors on February 02, 2016 and signed on its behalf by: Lascelles Chin CHAIRMAN Peter Chin Director

6 LASCO Distributors Limited Statement of Cashflows For the Nine months ended December 31, 2015 (expressed in Thousands) Cash Flows From Operating Activities: Unaudited Dec-15 J$'000 Unaudited Dec-14 J$'000 Profit for the period 591, ,861 Items not affecting cash 53,662 10,343 Changes in non-cash working capital components (164,268) (592,554) Cash provided by/(used in) Operating Activities 481,358 (187,350) Cash used in Investing Activities (332,705) (85,024) Cash provided by /(used in) Financing Activities 140,347 (101,881) Net Change In Cash and Cash Equivalents 289,000 (374,255) Cash and cash equivalents at the beginning of the period 559, ,142 Cash and Cash Equivalents at the end of the Period 848, ,887 Comprised of: Cash and Bank balances 848, ,887 Bank Overdrafts (125) 0 848, ,887

7 LASCO Distributors Limited Statement of Changes in Shareholders' Equity For the Nine months ended December 31, 2015 Share Revaluation Other Retained Capital Reserve Reserve Earnings Total $'000 $'000 $'000 $'000 $'000 Balance at 1 April ,191 75, ,102,559 2,397,137 Total Comprehensive Income , ,861 Dividends Paid (101,218) (101,218) Issue of Shares 7, ,500 as at December 31, ,691 75, ,396,202 2,698,280 Balance at 1 April ,373 75,387 28,129 2,548,071 2,882,960 Current year Profits , ,964 Other Comprehensive Income , ,000 Transfer from Other reserves 1,034 0 (1,034) 0 0 Issue of shares 1, ,500 Dividends Paid (92,784) (92,784) as at December 31, ,907 75,387 47,095 3,047,251 3,403,640

8 1. IDENTIFICATION AND ACTIVITIES: (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 SIGNIFICANT ACCOUNTING POLICIES: These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS); and the adopted interpretation of those standards by the International Accounting Standards Board, and have been prepared under the historical cost convention. They are also prepared in accordance with provisions of the Jamaican Companies Act. The accounting policies followed in these interim financial statements are consistent with those used in the audited financial statements for the year ended 31st March These financial statements are presented in Jamaican dollars unless otherwise indicated.

9 3. REMISSION OF INCOME TAX: The company's shares were listed on the Junior Market of the Jamaica Stock Exchange, effective 12 October 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. 4. RECEIVABLES Dec-15 Dec-14 $'000 $'000 Trade Receivables Roche Diagnostics 456, ,394 Regular Trade 1,197,714 1,036,892 1,654,114 1,618,286 Less: Provision for Bad Debts (22,965) (7,689) 1,631,149 1,610,597 Other Receivables 1,061, ,759 2,693,009 2,153,356 Included in trade receivables for Roche are items on which Roche bears the credit risk solely. The corresponding liability is included in trade payables (note 5) 5. PAYABLES $'000 $'000 Trade Payables Roche Diagnostics 402, ,669 Regular Trade 2,889,451 1,378,604 3,291,602 1,829,273 Other Payables & Accruals 142,697 71,888 3,434,299 1,901,161

10 6. SHARE CAPITAL Dec-15 $'000 Dec-14 $'000 Authorised - 3,630,000,000 ordinary shares of no par value Stated capital Issued and fully paid 3,375,431,150 (2014 3,373,931,150) ordinary shares of no par value 233, ,691