Lasco to invest 3m euros to double iCool production
Lasco Manufacturing Ltd (LASM) will invest 3 million euros to double output of its new star drink performer iCool.
It forms part of measures to double sales at the company by 2017.
The iCool drink line doubled capacity since its recent launch but needs to double capacity once again to meet demand, said Lascelles Chin, chairman of the three affiliated Lasco companies, at its annual general meeting at the Knutsford Court Hotel in Kingston on Wednesday.
“The 3 million euros is going to double what we have and I have a feeling that we going to have to double that again,” stated Chin on the capacity of its fully automated line.
Chin indicated that its iCool line of beverages created such “excitement” within the market that the demand far surpassed the targets and projections. The new equipment comes on the heels of a US$5-million investment for the year ending March 2015 to double capacity and to launch new lines related to iCool.
“We will install and commission [the new equipment] before the end of the first quarter of 2016. This will enable us to double our profits before 2017,” stated general manager Robert Parkins in his address at the annual general meeting.
Chin in 2013 announced ambitious plans to double profits at the three affiliated companies in three years. The projection would double Lasco Distributors Ltd (LASD) profits to roughly $1 billion; LASM profits to $1.2 billion; and Lasco Financial Limited (LASF) profits to roughly $320 million, based on the 2013 projections. It followed an earlier announcement by Chin in 2011 of plans to double sales in three years for LASM from $2.9 billion to some $6 billion.
The plans were dependent on the completion of the factory expansion which was delayed before construction began in January 2012.
On Wednesday Chin indicated that the targets remain attainable.
Thus far over five years (between March 2011 and 2015 year end) annual net profit at LASF shot up from $29.7 million to $191 million; LASD net profits are more than three-quarters higher from $306 million to $547 million; and LASM net profits are up by two-thirds from $402 million to $669 million.
The investment reflected the highlight announcement at the three annual general meetings attended by some 100 shareholders.
The investment remains continuous at LASM, and at year end 2015 it contributed to leading the company to record a cashflow and equivalents deficit of $232 million at LASM. However, it remains highly profitable.
Published By: The Observer
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