Thu | May 23, 2019

Lasco Distributors pays down debt

Published:Wednesday | July 25, 2018 | 12:00 AM
Peter Chin, managing director of Lasco Distributors Limited.

Lasco Distributors Limited paid down nearly half-billion dollars of the loans secured for its build-out project at Red Hills Road in Kingston in the quarter ending June.

The $1.2-billion project will create an additional 100,000 square feet of storage space at the warehouse complex. The additional space facilitated the increased inventory under its deal to distribute other companies' brands, including Unilever products, as well as the new products, such as Lyrix and Konka drinks, made by sister company Lasco Manufacturing.

The distribution company disclosed in its June first-quarter financial report that it has repaid $467 million of the funds borrowed for the warehouse expansion, resulting in a "current balance of $233 million".

Of the $233-million balance, $135 million is due in the short term, while the other $98 million is held as long-term loans.

Up to the end of March, the company had already spent more than $1 billion on the expansion project, which began with preparatory work in 2015.

For Lasco Distributors' June first quarter, revenue increased 3.5 per cent to $4.3 billion, while profit increased 18.7 per cent to $234 million.

During the quarter, the company's inventory increased nearly 14 per cent to $2.3 billion, while its trade receivables rose eight per cent to $2.16 billion. Cash and short-term investments of $1.33 billion rounded out the top three current assets.

Investments in the warehouse project drove its fixed assets to $1.6 billion, up eight per cent.

The company's book value also increased by more than half-billion dollars to $4.8 billion.

business@gleanerjm.com