Lascelles adds Q1 profit at 14 times revenue growth
Lascelles Demercado & Company produced robust results for its first quarter ended December 2010, when net profit surged despite anaemic revenue.
Top-line income grew two per cent to J$7.15 billion for the period, while bottom-line profit raced to J$821 million, a 37 per cent gain.
Essentially, Lascelles kept its costs associated with production and sales in check, improved revenue by just J$16 million, but added J$220 million of bottom-line profit - which means profit grew 13.75 times faster than revenue - to retain almost all savings made on input costs in the period.
The conglomerate, whose business spans wines and spirits, pharmaceuticals, general merchandising, general insurance, and transportation services, is valued by assets at J$39 billion, with operation segment liquors, rums, wines and sugar accounting for the biggest part of the group operation.
Lascelles' cost of business declined by 6 per cent or J$265m to J$4.2 billion in the quarter. Operating costs linked to administration, marketing and selling, were also tightly managed, but stayed basically flat at J$2.04 billion, a marginal improvement from the J$2.08 billion spent in the 2009 first quarter.
Net finance income also fell dramatically from J$94 million to J$42 million.