2014 - Lasco Jamaica Limited

Transcription

2014 Annual Report LASCO Distributors Limited
1
Vision & Mission
VISION
To become a global corporate leader, through innovation
and entrepreneurship. Driven by a passion for excellence
and compassion for our fellow man, we will make LASCO
a world name, synonymous with integrity, value and service.
MISSION
Our mission is to provide quality products and services to
employee development.
our customers, ensure profitability and promote
Being the best...Always.
2
3
Contents
COMPANY INFORMATION
3
Notice of Annual General Meeting
To adopt, receive and consider
resolutions
5
Corporate Data
LASCO divisions and their locations
6
Shareholders' Profile
A report on the volume & percentage
shareholdings in the Company
STATEMENTS
7
Five Year Financial Review
8
10
Chairman's Statement
13
Corporate Governance
An outline of the responsibilities of the
committees
15
Directors' Report
16 Managing Director’s Report
20
Executive Management Team
22
Management Discussion & Analysis
Company Overview
Business Review
Analysis by Division
FEATURES
34
Corporate Social Responsibility
Marketing, Advertising & Promotions
FINANCIAL REPORT
44
Financial Statements
OTHER INFORMATION
80
2014 Annual Report
NOTICE IS HEREBY GIVEN that the Annual General Meeting of LASCO DISTRIBUTORS LIMITED will be held at the
Knutsford Court Hotel on September 30, 2014 at 11:30 am. The proposed resolutions are as follows:
ORDINARY BUSINESS
Ordinary Resolutions
1.
Audited Accounts
To consider and if thought fit, pass the following resolution:
“THAT the Audited Accounts for the year ended March 31, 2014 and the Reports of the Directors and Auditors,
circulated with notice convening the meeting, be and are hereby adopted.”
2. Election of Directors
Article 97 of the Company’s Articles of Incorporation provides that one-third of the Directors, if their number is not
three (3) or a multiple of three (3), the number nearest one-third (1/3), shall retire from office at each Annual General
Meeting and Article 98 of the Company’s Articles of Incorporation provides that the Directors to retire in every year
shall be those who have been longest in office since their last election. The Directors retiring under these Articles are
Dr. Eileen Chin and J. A. Lester Spaulding and being eligible, offer themselves for re-election.
The proposed resolutions are as follows:
To consider and if thought fit pass the following resolution:
(i) “THAT Director, Dr. Eileen Chin, retiring pursuant to Articles 97 and 98 of the Articles of Incorporation be and
is hereby re-elected.”
Directors' Profile
REPORTS
29
Notice of Annual General MEETinG
Proxy Form
(ii)“THAT Director, J. A. Lester Spaulding, retiring pursuant to Articles 97 and 98 of the Articles of Incorporation
be and is hereby re-elected.”
3. Election of New Directors
3.1 THAT Gary Peart was, on the 28th day of October, 2013 appointed as Non-Executive Director of the
Company until the next Annual General Meeting. Mr. Gary Peart being eligible offered himself for election as a
Director of the Company.
The proposed resolution is therefore as follows:
“THAT Gary Peart be and is hereby elected a Director of the Company.”
3.2 THAT Jacinth Hall-Tracey was, on the 28th day of October, 2013 appointed as Non-Executive Director of
the Company until the next Annual General Meeting. Mrs. Jacinth Hall-Tracey being eligible offered herself for
election as a Director of the Company.
The proposed resolution is therefore as follows:
“THAT Jacinth Hall-Tracey be and is hereby elected a Director of the Company.”
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4. Directors’ Remuneration
“THAT, the Directors’ remuneration shall be such amount as the Board of Directors, or any appropriate
Committee of the Board of Directors, may determine, pursuant to Article 77 of the Company’s Articles of
Incorporation.”
5. Appointment of Auditors and their Remuneration
“THAT Messrs BDO, having signified their willingness to serve, continue in office as Auditors of the
Company until the conclusion of the next Annual General Meeting at remuneration to be agreed with the
Directors.”
Dated this 30th day of June 2014
BY ORDER OF THE BOARD OF DIRECTORS
Vincent A. Chen
COMPANY SECRETARY
Corporate Data
REGISTERED OFFICE
LASCO Distributors Limited
27 Red Hills Road
Kingston 10
Jamaica, W.I.
Tel: (876) 749-5272
Fax: (876) 749-2966
Website: www.lascojamaica.com
SEGMENT LOCATION
LASCO Pharmaceutical Division
27 Red Hills Road
Kingston 10
Jamaica, W.I.
Tel: (876) 968-3456-65;
(876) 929-7633
Fax: (876) 929-7622
LASCO Consumer Division
White Marl
St. Catherine
Jamaica, W.I.
Tel: (876) 749-2967-9;
(876) 749-5272
Fax: (876) 749-2966
BOARD OF DIRECTORS
Executive Directors
Hon. Lascelles Chin, O.J., C.D.
Chairman
Mr. Peter Chin
Managing Director
Non-Executive Directors
J. A. Lester Spaulding, C.D., J.P.
Dr. Eileen Chin, MBA
Mr. Anthony Chang
Sir Kenneth Hall, O.N., G.C.M.G., O.J.
Mrs. Jacinth Hall-Tracey, MBA
Mr. Gary Peart, MBA
NOTE: A Member of the Company entitled to attend and vote at this meeting is entitled to appoint another person as his/her Proxy to
attend and vote in his/her stead, and a Proxy need not be a Member. A Form of Proxy is enclosed for your convenience. 2014 Annual Report
List of Senior Officers
Chairman
Mr. Peter Chin
Managing Director
Mrs. Cecilia Lewis
Financial Controller
Mr. Vincent Chen
Company Secretary
Attorneys-At-Law
Chen, Green & Company
6 Haining Road
Kingston 5
Jamaica W.I.
Bankers
CIBC First Caribbean International Bank
Jamaica Limited
23-27 Knutsford Boulevard
Kingston 5
Jamaica W.I.
Bank of Nova Scotia Jamaica Limited
Cnr. Duke & Port Royal Streets
Kingston
Jamaica W.I.
National Commercial Bank Jamaica Limited
94 Half Way Tree Road
Kingston 10
Jamaica W.I.
Auditors
BDO
26 Beechwood Avenue
Kingston 5
Jamaica W.I.
Registrar and Transfer
Agents
Jamaica Central Securities Depository
40 Harbour Street
Kingston
Jamaica W.I.
6
Shareholders' Profile
Five Year Financial Review
TOP TEN SHAREHOLDERS as at March 31, 2014
FIRST CALENDAR YEAR OF DATA 2010
NUMBER OF YEARS OF DATA 5
REPORTING VALUES $’000
NAME
Joint Holders
Lascelles A. Chin
*East West (St. Lucia) Limited
Mayberry West Indies Limited
Huixiong Liao
Mayberry Managed Clients Account
Catherine Adella Peart
JCSD Trustee Services Limited
- Sigma Venture
Wayne M. Chin * Hilda Gonzalez-Rosales
Joel Izquierrdo Gonzalez
* Liudmila Gonzalez Diaz
Hilda Gonzalez Rosales Eileen Chin
VOLUME
PERCENTAGE
1,019,337,780
1,649,551,260
2,668,889,040
81,230,529
33,280,300
23,066,067
23,000,000
21,537,000
30.28
49.00
79.28
2.39
0.98
0.69
0.68
0.64
21,054,360
2,833,000
23,887,360
20,000,000
0.63
0.08
0.71
0.59
0.00
0.59
0.51
0.39
3,000
20,003,000
17,118,600
13,204,100
2014
Number of Shares Issued
Stock Holders Equity ($’000)
Percentage increase over prior year
Market Capitalisation
Total Borrowings
J. A. Lester Spaulding
Anthony Chang
Peter Chin
Lascelles Chin
Kenneth Hall
Eileen Chin
Jacinth Hall-Tracey
Gary Peart
Position * Connected Party
* Kamla Chin
* East West (St. Lucia) Limited
* Rheima C. Holding Hall
* Hilda Gonzalez Rosales
VOLUME
1,503,000 913,000
2,000,000
1,019,337,780
1,649,551,260
2,668,889,040
753,000
13,204,100
Nil
Nil
Shareholdings of Senior Officers and Connected Parties as at March 31, 2014
Name Primary Holder
Cecilia Lewis
Position * JOINT HOLDER
Financial Controller
UNITS
203,000 PERCENTAGE
0.006
*Connected Party
2014 Annual Report
2010
3,366,431
3,366,431
336,643
74,072
$2,397,137
$1,887,101
$1,464,428
$961,174
$509,657
27.0%
28.9%
52.4%
88.6%
31.2%
$5,049,646,725
$3,534,752,708
$4,046,450,242
$1,077,257,968
$0
$45,778
$0
$2,812
2010
Turnover ($’000)
$9,464,744
$8,255,354
$7,460,509
$6,756,555
$5,842,917
14.64%
10.65%
10.42%
15.64%
15.00%
$587,464
$506,833
$570,711
$406,250
$142,577
15.9%
-11.2%
40.5%
184.9%
6.8%
$587,464
$506,833
$550,377
$306,398
$97,721
15.9%
-7.9%
79.6%
213.5%
23.9%
$587,464
$506,833
$550,377
$306,398
$98,073
15.9%
-7.9%
79.6%
212.4%
23.9%
0.00
0.02
0.00
0.00
0.57
24.51%
26.86%
37.58%
31.88%
19.24%
6.2%
6.1%
7.6%
6.0%
2.4%
14.22%
16.63%
23.80%
16.55%
4.45%
Quick Ratio
1.49
1.22
1.45
1.15
0.95
Current Ratio
2.23
2.33
2.33
1.86
1.39
6.2%
6.1%
7.4%
4.5%
1.7%
0.71
0.56
0.44
2.86
6.88
Earning per Stock Unit-basic-JA$
$0.17
$0.15
$0.16
$1.02
$0.36
Closing Stock Price-JSE: JA$
$1.50
$1.05
$1.20
$3.20
8.60
6.97
7.35
3.14
Profit before Taxation ($’000)
IMPORTANT RATIOS
Debt to Equity Ratio
Return on Equity
Profit before Taxation/Sales
Return on Asset Ratio
Return on Sales
Shareholders’ Equity per Stock Unit-JA$
Price Earning Ratio
2013
$288,402
2011
0.04
0.03
0.06
30.28
49.00
79.28
0.02
0.39
Nil
Nil
2011
2012
Net Profit Attributable to Stockholders ($’000)
PERCENTAGE
2012
3,366,431
2014
Name Primary Holder
2013
INCOME STATEMENT
Profit before Taxation ($’000)
Shareholdings of Directors and Connected Parties as at March 31, 2014
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Chairman's STATEMENT
The Board of Directors is pleased with the
performance of LASCO Distributors Limited in
achieving revenue growth and improved profit
performance over last year. For the financial year
ended March 31, 2014, revenue growth was 14.6%
totaling $9.46B in sales, with a 15.9% increase in net
profit, ending the year at $587.5M. This
performance is indeed commendable, given the
difficult economic conditions wherein businesses
are experiencing significant challenges. We applaud
management and staff for implementing and
executing successful strategies resulting in the
Company’s positive performance.
The Board will continue to support and guide the
management team in their efforts to achieve the
overall objectives. There is confidence that the
management team will continue to lead and motivate
personnel, be innovative and improve business
operations, in order to navigate through the current
dynamic economic environment.
The goal of the Company is to be a powerhouse in
the distribution business with representation of
international brands, as well as expanding our own
brands. LASCO has already experienced significant
achievements with improved presence for the
brands represented, supported by continued
collaboration with our valuable Principals to ensure
focus. For our LASCO brands, we continue to have
success with new product introductions and line
extensions, as there is a rich pipeline of products still
to come to market. The economy experiences cycles and goes through
periods of expansion and recession. Despite the
reality of operating in an economic downturn,
LASCO’s philosophy of giving back continues
through various corporate initiatives in support of
2014 Annual Report
our vision statement “compassion for our fellow man”. This is truly our passion and we will continue
our contributions to our many outstanding
Jamaicans and the wider nation.
We congratulate and welcome the newly appointed
Directors to the Board, Mrs. Jacinth Hall-Tracey and
Mr. Gary Peart. We look forward to their expertise,
contribution and support as we journey together into
another year and an exciting future. The future is indeed promising as we continue
to develop the business and build out our vision
in providing value and service to our
valuable consumers.
Hon. Lascelles A. Chin O.J., C.D.
Executive Chairman
The Hon. Lascelles Chin, O.J., C.D.
EXEcutive Chairman
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DirectorS' Profiles
Mr. Spaulding is a Non-Executive Director of the Company and its mentor for the purposes
of the Rules of the Jamaica Stock Exchange Junior Market. As mentor, he is responsible for
advising the Board on the implementation of adequate procedures, systems and controls,
corporate governance, financial reporting and the release of timely information to the market.
Recipient of the Order of Jamaica for his philanthropy and contribution to the
development of commerce and business, Lascelles Chin is the Chairman and
Founder of the LASCO Affiliated Companies.
This Jamaican born entrepreneur who ventured into the field of business and
commerce in 1956, found opportunities in a variety of sectors: the import of
spices and teas, sales of adhesives through his partnership with Henkel, furniture
manufacturing, data processing, car rentals, horticulture, insurance brokerage,
hair products, soya oil refining and chicken processing. As a result of his wealth
of knowledge, business experience and being always mindful of his humble
beginnings, the Chairman has constantly sought to develop and distribute
affordable products.
Executive Chairman
Mr. Chin shares his ideas and energy with his business colleagues and has
contributed greatly to prominent Jamaican organizations such as the Jamaica
Industrial Development Corporation, the Jamaica Exporters’ Association and
the Jamaica Promotions Corporation (JAMPRO). He is a current Director of the
Bureau of Standards’ Standards Council, The University of the West Indies’
School of Nursing Advisory Board and the King’s House Foundation. He is also
the Executive Chairman of LASCO Manufacturing Limited and LASCO Financial
Services Limited.
Mr. Spaulding is the Chairman of the Board’s Audit and Compliance Committee and a
member of the Compensation Committee. These committees are required by the Junior
Market Rules for the purposes of good governance.
Mr. J. A. Lester Spaulding, C.D., J.P.
Non-Executive Director
and Mentor of the Board
Dr. Eileen Chin is the Managing Director serving as an Executive Director on the Board
of LASCO Manufacturing Limited. Born in Havana City, Cuba, Dr. Chin holds a post
graduate degree in Medicine from the Havana University School of Medicine. She
specialized and taught histology from 1993 to 1998 at the Giron School of Medicine, and
migrated to Jamaica in 1998.
The Chairman has also been listed among the top 10 personalities in Jamaica
published by the Jamaica Observer on several occasions. In 2011, he was
inducted into the Private Sector Organization of Jamaica (PSOJ) Hall of Fame.
Mr. Peter Chin has been Managing Director of LASCO Distributors Limited
since November, 2011. Mr. Chin has over 15 years experience in the
distribution industry and has held several senior management positions at
LASCO Distributors Limited. Some of the positions held include Logistics
Manager with responsibility for distribution and procurement, Marketing
Manager and General Manager for the Consumer Division. Dr. Chin joined the LASCO Group of Companies in 1999 serving in several positions
including marketing, product and label development and international business
development for Central and South American markets. She was appointed General
Manager of LASCO Foods (Successors) Limited in 2008 and in 2010 Managing Director
prior to the name change to LASCO Manufacturing Limited.
Dr. Chin holds an MBA in Global Management and has received knowledge and skills
development training in Advanced Negotiation, Risk Management and Lean Six Sigma.
Dr. Eileen Chin, MBA
She is also an active member of the Board of Directors of LASCO Financial Services
Limited, LASCO Distributors Limited and the Portia Simpson Miller Foundation. Mrs. Hall-Tracey is a Non-Executive Director of the Company. She holds an MBA from
Edinburgh Business School, a Bachelor of Arts Degree (Hons.) from The University of the
West Indies, Corporate Treasury and Cash Management Certificate from the Association of
Financial Professionals which grants the CTP (Corporate Treasury Professional) designation
and several other professional courses in Marketing, Securities and Anti-Money Laundering
procedures.
Mr. Chin has gained a wealth of experience in the functional areas of logistics,
procurement, sales, marketing, operations and new product development. Over the years, he has developed a reputation for strong people-management
skills and sound leadership. Mr. Chin’s performance in these key areas of the
business prepared him for the top managerial position which he now holds. Mr. Peter Chin
Managing Director
Mr. Spaulding is currently the Non-Executive Chairman of the Board of Directors of the RJR
Communication Group. He started his 42 year career in business as an Accountant, rising to
the position of Managing Director. Mr. Spaulding was responsible for guiding the Company
operationally as its CEO for 30 years up to 2008. This includes listing the parent Company
Radio Jamaica Limited on the Jamaica Stock Exchange after a successful IPO in September
1991. He also serves on the Boards of other commercial institutions including
JN Money Services Limited, Guardsman Communications Limited and
LASCO Manufacturing Limited. He currently serves as Director in community service
organizations, Peace and Love in Schools (PALS) and the Caribbean Community of Retired
Persons (CCRP). He is also an Honorary Rotarian of the Kingston Rotary Club.
At LASCO, Mr. Chin has managed the oversight of several mission-critical
projects, leading the modernization of the distribution center infrastructure
and heading the steering committee that implemented the Company’s
systemwide ERP network software. Mr. Chin currently sits on the Board of
Directors for LASCO Financial Services Limited and LASCO Manufacturing
Limited.
In 2009 Mrs. Hall-Tracey was appointed Managing Director of LASCO Financial Services
Limited. She began as General Manager and Compliance Officer of the Company in 2004. She was appointed as Non-Executive Director of LASCO Manufacturing Limited in 2013. In March 2014, Mrs. Hall-Tracey was appointed National Mentor by the Governor General
of Jamaica and mentors at her Alma Mater – Merl Grove High School. She is a member of
the Cambio Association of Jamaica and the Jamaica Money Remitters Association.
Mrs. Jacinth Hall-Tracey, MBA
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2014 Annual Report
15
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Gary Peart joined Mayberry Investments Limited in May 2005 as Chief
Executive Officer after developing his management techniques throughout
the financial industry over the course of 15 years. During this time, he gained
experience in almost every business line, including Corporate Finance,
Equity, Fixed Income and Treasury Management, all of which prepared
him for his current role as CEO and Board member of several well-known
Jamaican entities. Mr. Peart also sits on the Boards of LASCO Financial
Services, Access Financial Services and Port Authority of Jamaica. He is
Chairman of the Board – Jamaica Bauxite Institute and Betting Gaming and
Lotteries Commission. He is also an alternate Board Member of the Jamaica
Stock Exchange and Vice President of the Jamaica Securities Dealers
Association.
Mr. Gary Peart, MBA
Corporate Governance
As at March 31, 2014
The Board of Directors of LASCO
Distributors Limited is responsible for
good Corporate Governance. To this
end, the Board is directly responsible for
ensuring accountability, objectivity and
transparency in the Company’s activities,
all of which are essential to the success of
achieving increased shareholder confidence
and maximization of shareholder value. In
fulfilling its responsibility, the Board ensures
compliance with the Company’s policies
and procedures; the rules of the Jamaica
Stock Exchange Junior Market and most
importantly, the laws and regulations of
the land. Additionally, the Board fosters
and encourages a culture of good ethical
practices throughout the Company.
Beyond the business world, Mr. Peart provides support to the Mona School
of Business as a member of the Investment Committee and a member of the
Rotary Club of St. Andrew North.
The Most Honourable Professor Kenneth Hall holds a Doctorate of
Philosophy Degree in history from Queen’s University, Ontario, Canada.
He served as Governor General of Jamaica from 2006 – 2009. Prior to
serving as Governor General, he was Pro Vice-Chancellor and Principal of
The University of the West Indies, Mona Campus. In 2009, he was appointed
an Honorary Distinguished Fellow of the Mona School of Business.
The Most Hon. Professor. Sir
Kenneth Hall, O.N. G.C.M.G., O.J..
Mr. Anthony Chang
2014 Annual Report
The Most Honourable Professor Kenneth Hall worked to advance regional
integration during his tenure at the CARICOM Secretariat from 1975 to 1977
and 1994 to 1996. He is a prolific writer and has published several books,
articles and reviews. In 2004, he was awarded the Order of Jamaica for his
contribution to education and regional development.
Board Composition
As at March 31, 2014, a total of eight
members comprised the Company’s Board:
two Executive and six Non-Executive
Directors. The members are experienced
and qualified individuals with diverse skills
and knowledge from varying professions.
The expertise of the Board Members ensures
that decisions are made in the best interest
of the Company, resulting in improved
Shareholders’ Equity.
Mr. Chang is a Non-Executive Director of the Company. He is a graduate
of the University of the Western Ontario, Canada, Richard Ivey School
of Business (Bachelor of Arts (Hons)). He has also completed many
professional courses and was awarded a Hubert Humphrey Fellowship by
the American University of Washington, D.C. (1996). Mr. Chang was the
Managing Director of T. Geddes Grant Limited prior to joining the LASCO
Affiliated entities.
Board Sub-committees
There are two Sub-Committees: the Audit
and Compliance Committee and the
Compensation Committee. The Members
were appointed by the full Board of Directors
and any Board Member may by invitation
attend sub-committee meetings.
Mr. Chang is a Board Member of various local institutions and companies
including Scotia Group Limited, Scotia DBG Investments Limited and
Digicel Jamaica Limited. He was President of the Jamaica Chamber
of Commerce, Chairman of Legislation and Regulation (a USAID
and Government of Jamaica private sector project which, amongst
other things, funded the reorganization of the local Taxpayer Audit
and Administration Department’s audit programmes and created the
Caribbean’s first Developmental Approval Centre at NEPA).
Mr. J. A. Lester Spaulding,
C.D., J.P.
Chairman
Audit & Compliance Committee
The Audit and Compliance
Committee
This Committee, chaired by Mr. J. A. Lester
Spaulding, has direct responsibility to
assist the Board by overseeing the financial
reporting and auditing process of the
Company’s activities. The Committee meets
quarterly and continues to be guided by its
established terms of reference to ensure:
- good fiscal discipline
- open and accurate financial reporting and
- timely disclosures
For the financial period under review,
the Committee appointed Mayo Holdings
Limited to function on a co-sourcing basis
to provide internal audit services. At the
beginning of the year, the Committee
reviewed and approved the audit plan
for the financial year. In an effort to
maintain and improve organizational
procedures and controls for safeguarding
the Company’s assets, the Internal Audit
Department, through the appointed Internal
Auditor, reports to the Committee at its
quarterly meetings. During the periodic meetings, the members
of the Committee also analyze the quarterly
interim financial statements and the annual
audited financial statements in accordance
with the rules of the Jamaica Stock
Exchange Junior Market and International
Financial Reporting Standards, and makes
recommendations to the full Board of
Directors for publication.
The Compensation Committee
This Committee has responsibility to advise
the Board on all matters relating to the
compensation of the Executive Chairman, the
Managing Director and the Non-Executive
members of the Board. The Committee
is chaired by the Hon. Professor Sir Kenneth
Hall and its terms of reference require
that the Committee meets at least once
per year to evaluate the performance of
the Executive Chairman and the Managing
Director. For the financial year under review,
the Committee met as mandated and
made its recommendation to the full
Board of Directors. 2014 Annual Report LASCO Distributors Limited
14
Directors' Report
As at March 31, 2014
Below is a summary of the register in respect of the meetings for the financial year ended
March 31, 2014.
MeetingsAGM BOD
No. of Meetings 1 4
Lascelles Chin 1 4
Peter Chin
1
4
Eileen Chin
1
4
Anthony Chang
-
4
1
2
Sir Kenneth Hall
1
4
Jacinth Hall-Tracey *
-
1
Gary Peart *
-
2
Compensation Audit
CommitteeCommittee
1
4
1
3
-
4
-
-
-
3
1
3
-
-
-
* Appointed November 2013
The following table outlines the composition of each Committee.
Meetings
Lascelles Chin
Peter Chin
Eileen Chin
Anthony Chang
Sir Kenneth Hall
Jacinth Hall-Tracey
Gary Peart
Compensation Committee
√
-
-
-
√
√
-
-
Audit Committee
√
√
√
-
The Directors of LASCO Distributors Limited (the Company) are pleased to present their report for the financial
year ended March 31, 2014.
FINANCIAL RESULTS
The Statement of Comprehensive Income shows total Comprehensive Income of Five Hundred Eighty
Seven Million, Four Hundred Sixty Four Thousand Dollars (J$587,464,000). The Company listed its shares
on the Junior Market of the Jamaica Stock Exchange on October 12, 2010 and for this reason is entitled to a
remission of Corporate Income Tax for a period of ten years from the date of listing as follows:
Years 1 – 5 Years 6 – 10 100%
50% DIRECTORS
The Directors of the Company as at March 31, 2014 are: Lascelles Chin (Executive Chairman), Peter Chin
(Managing Director), Eileen Chin (Non-Executive), J. A. Lester Spaulding (Non-Executive), Kenneth Hall
(Non-Executive), Anthony Chang (Non-Executive), Gary Peart (Non-Executive) and Jacinth Hall-Tracey
(Non-Executive).
In accordance with the Articles of Incorporation of the Company, Dr. Eileen Chin and J. A. Lester Spaulding
shall retire by rotation and being eligible, will offer themselves for re-election.
AUDITORS
The Auditors of the Company, BDO, of 26-28 Beechwood Avenue, Kingston 10, Jamaica, have expressed
their willingness to continue in office as Auditors of the Company until the conclusion of the next Annual
General Meeting.
DIVIDEND
An interim dividend of two cents (0.023) per share was paid on December 10, 2013 to shareholders on record
as at November 26, 2013. This dividend was declared final and that no further dividend be paid in respect of
the year under review. NEW APPOINTMENTS
Mrs. Jacinth Hall-Tracey and Mr. Gary Peart were on the 28th day of October, 2013 appointed by the Directors
as Non-Executive Directors of the Company until the holding of the Annual General Meeting. Mrs. Jacinth
Hall-Tracey and Mr. Gary Peart being eligible offered themselves for election as Directors of the Company.
The Directors wish to extend special thanks to our shareholders for the confidence that they have placed in
LASCO Distributors Limited. We look forward to a continued rewarding relationship for the coming year and
beyond.
We acknowledge and extend our appreciation to the committed efforts and hard work of the members of staff.
Thanks to our consumers, customers, suppliers and other stakeholders for your continued support.
Dated this 30th day of June 2014
FOR AND ON BEHALF THE BOARD
Vincent A. Chen
Company Secretary
2014 Annual Report
15
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MANAGING DIRECTOR’S REPORT
The last financial year was a successful one for LASCO
Distributors Limited as the Company achieved an
increase in revenue and improved net profit.
Peter M. Chin
MANAGING DIRECTOR
For the financial year ended March 31, 2014, turnover
was $9.46B which was an increase of 14.6% or $1.21B
over the prior year of $8.26B. Total comprehensive
income was $587.5M, an increase of 15.9% or $80.6M
over the previous year. The strong performance was
however not immune to the tight economic conditions,
and it was indeed challenging for businesses in general
to do well.
The business environment was difficult with the
continuing devaluation of the Jamaican dollar, rising
costs and low consumer spending power. The
company however continued to have strong demand
for key products. The positive results were driven by
robust commercial activities in the trade, focus on
service delivery and key marketing activities. In keeping with the growth strategy, several new
products were introduced to market during the year. The categories ranged from oral care, infant, beverage,
breakfast and introduction of several pharmaceutical
products. In January 2014, the Company signed an
exclusive distribution agreement for the local market
with Salada Foods Jamaica Limited for its full range
of products. The expectation is for a high level of
collaboration and effort to grow the brands of this
esteemed range of coffees and teas. There were
also several successful entries to market for Principal
brands as the Company pushes to broaden the
portfolio of products marketed and in distribution. There were changes in infrastructure and staffing to
prepare the Company for growth as well as improve
effectiveness. Critical operations were reviewed and
programmes initiated to introduce energy saving
methods, use innovation and improve processes. These measures will be implemented on a phased
basis, but have already started producing immediate
results, as we look towards more significant long-term
benefits. It has been a philosophy of LASCO to give back. Through its corporate initiatives, the Company
continues to support and recognize many unsung
Jamaican heroes in the field of health care, education,
security, community development and environmental
awareness. LASCO’s Nurse of the Year (NOY),
Teacher/Principal of the Year (TOY/PrOY), Police of
the Year (POY) and Re-Leaf Environmental Awareness
Program (REAP) are calendar events. It was indeed
another outstanding year where we celebrated and
acknowledged men, women and students who are
standard bearers and future nation builders.
In the coming year, the Company will enter into new
categories and launch several new brands to market
in both Pharmaceutical and Consumer Divisions.
This means an increase in the product portfolio and
brand representation for Principals. We will continue
to seek new business partners and expand our own
brands and further develop the channels we service.
To facilitate the growth path, preparatory works have
been done for the expansion of the existing distribution
centres by an additional 90,000 sq. ft. The facilities will
be fitted with the latest energy efficient equipment and
inventory management technology to ensure maximum
efficiency. We are appreciative of the continued collaboration and
support of our customers. Even more so, the continued
patronage of consumers who continue to purchase
LASCO products, especially at a time when spending
power is diminishing and consumers have to make
conscious choices about the products they purchase.
I would like to extend special commendations to
the Management and staff for the creditable efforts
displayed over the period to achieve the Company’s
objectives. I would also like to thank the Directors for
their stewardship over the period.
Thank you to our shareholders for your continued
support and confidence in us. We remain committed to
achieving growth and profitability.
Peter M. Chin
Managing Director
2014 Annual Report
18
19
The LASCO Story
2014 Annual Report
Chronological Highlights
20
Executive Management Team
Sales, Marketing and Operations
Consumer Division
2014 Annual Report
21
Pharmaceutical Division
Support Services
22
23
Management Discussion
and Analysis
Company Overview
LASCO Distributors Limited is a leading distribution company in Jamaica. The business was established by the
Honourable Lascelles Chin in September 1988 and in a relatively short time, the Company rapidly increased its market
presence by offering quality products to the market at competitive prices. This market positioning and the focus on
satisfying consumer needs have led to LASCO being market leaders in several major categories in the industry.
The Company was listed on the Jamaica Stock Exchange in October 2010. The Company is comprised of two divisions the Consumer Division and the Pharmaceutical Division. The segmentation is based on product specialization and allows
for greater focus to meet customer demand.
The product distribution spans a wide range of fast moving consumer goods from the Consumer Division which
distributes food, beverage, personal care, baby care, adult incontinent and home care products. The supply network also
includes the distribution of ethical and over the counter (OTC) pharmaceutical products, animal health, and equipment for
major international brands, as well as its own private brands from both divisions. The distribution channels include supermarkets, chain stores, wholesalers, small format stores, schools, pharmacies,
government institutions and health care facilities. The product distribution reach is over several hundred locations and
comprises over 3,000 individual product units.
Business Review
For the past year, the competitive activity was intense and dynamic as the continuing devaluation of the Jamaican dollar
pushed businesses to increase prices in trade, coupled with the fact that consumers have limited funds to spend and are
forced to make conscious choices. The Company’s market positioning is to provide good value to consumers; therefore
the pricing mechanism is even more intricate in such an environment. There had to be stringent controls in managing the
supply chain, robust in-trade activities and creative marketing efforts to drive demand for our products. In a very volatile market and tight economic conditions our customers have been challenged to engage customers and
drive traffic to their stores. The in-store presence was strengthened and adjustments were made to other in-market
teams for better coverage and service delivery. There were also steps put in place to improve our sales force applications
enabling the teams to have stronger capabilities and access to newer technology. The focus is to continue to increase the product portfolio of Principal brands as well as owned brands. For the year, this
was achieved with product line extensions, new entries to market and distribution agreements. Based on the Company’s
objectives and projections, several changes were made to improve and expand the distribution centeres. This is in
conjunction with the roll-out of newer equipment and improved technology. With respect to improvements in efficiencies there have been several audits and reviews of the Company’s operations. In
particular, energy savings, deployment of technology and process improvements are some of the key areas which were
addressed. The process was initiated and the expectation is to have these measures implemented over time. Several
changes were made in the day-to-day operations to reduce costs and efforts are being made to sensitize personnel to
ensure continuous review and encourage this discipline.
2014 Annual Report
Financial Performance
Total Revenue for the Company for the financial year
ended March 31, 2014 was $9.46B, an increase
of 14.6% or $1.21B over the previous year of
$8.26B. Revenue growth was boosted by strong
growth performance primarily from the Consumer
Division. There was market share growth for key
products, excellent offtake and trade rotation for
newly introduced LASCO branded products and
increased revenues from products added from new
representation of Principal brands.
Gross Profit was $1.83B, which is 11.8% growth
over the previous year, while Gross Profit Margin was
19.4%, a reduction from 19.9%. The Pross Profit
Margin change was due to changes in the business
structure where there were increases in volumes
to institutions at lower margins. Margins were also
impacted as the Company continues to be aggressive
in trade and still remain competitive. The Company
operates in an environment where there is continued
devaluation of the Jamaican dollar and increased
competitive activity.
Total Comprehensive Income
Other Income
Total Comprehensive Income was $587.5M, an increase
of 15.9% or $80.6M compared to the previous year. Other Income grew by 48.5% to $50.7M. This is
for income earned from interest and commission
from sales of diagnostic and critical care products
to key institutions.
FINANCIAL SUMMARY 2014 vs. 2013
Revenue
Gross Profit
Gross Profit %
Operating Expenses
Op/Ex to Sales
Profit from Operations
Non-Operating Expense
Profit Before Taxation
Taxation
Net Profit Per Year
Earnings Per Share
2013/14
2012/13
Change
$’000
$’000
$’000
9,464,744
1,834,307
19.4%
1,295,518
13.7%
589,508
2,044
587,464
587,464
$0.17
8,255,354
1,641,263
19.9%
1,162,371
14.1%
513,050
6,217
506,833
506,833
$0.15
1,209,390
193,044
-0.5%
133,147
-0.4%
76,458
(4,173)
80,631
80,631
$0.02
%Change
14.6%
11.8%
11.5%
14.9%
-67.1%
15.9%
0.0%
15.9%
13.3%
24
25
Administrative, Selling & Promotional Expenses
The Company’s Total Operating Expenses was $1,295.5M, an increase of $133.1M or 11.5% over the previous year. Staff Costs increased by $91.5M, as the Company strengthened the in-market presence and deployed additional staff
to support new products in-trade. Management & Consultancy Fees increased by $18.7M. This was due to increases
in professional and legal fees. Donations & Subscriptions increased by $15.9M. This was due to renewal and licensing
fees for software upgrades and activities for the corporate programme. With the increases in Operating Expenses
there was containment, as the Ratio to Sales was 13.7%, a reduction from 14.1% of the previous year. ADMINISTRATIVE, SELLING & OTHER EXPENSES
Staff Costs (note 10)
Directors' Fees
Property Expenses
Transportation & Comms.
Advertising & Promotion
Mgmt & Consultancy Fees
Insurance
Stationery
Utilities & Postage
Security
Donations & Subscriptions
Bank Charges
Auditors' Remuneration
Foreign Exchange Loss
Depreciation
Other Administrative Exp.
Total Administrative, Selling &
Other Expenses
2014
2013
Var
Var
$’000
$’000
$’000
%
770,645
3,657
29,601
46,590
163,487
41,903
28,425
11,157
50,252
43,741
42,481
17,438
4,600
7,220
22,477
11,844
1,295,518
679,185
2,880
28,640
39,217
171,510
23,156
23,513
10,023
50,580
36,815
26,545
18,329
4,200
18,277
18,419
11,082
1,162,371
91,460
777
961
7,373
(8,023)
18,747
4,912
1,134
(328)
6,926
15,936
(891)
400
(11,057)
4,058
762
133,147
13.5%
27.0%
3.4%
18.8%
-4.7%
81.0%
20.9%
11.3%
-0.6%
18.8%
60.0%
-4.9%
9.5%
-60.5%
22.0%
6.9%
11.5%
Profit from Operations
Profit from Operations was $589.5M compared to $513.1M
the previous year, an increase of 14.9% or $76.4M. As a
ratio of net sales, profit from operations was 6.2% similar to
last year. 14.9%
2014 Annual Report
There was also a reduction in Finance Costs of 67.1%
as management was better able to meet the operational
requirements.
26
Financial Position
At the end of the financial year ended March 31, 2014, total
assets increased by 36.6% to $4.16B compared to $3.05B
same period last year. Property, plant and equipment grew
by 37.3% to $272.2M. The increase in Property, Plant and
Equipment was due to several improvements made in
the Company’s operational capability and infrastructure
changes primarily at the distribution centres.
Current Assets increased by 44.1% over the corresponding
period, ending the financial year at $3,891.1M. Short-term
Investments increased by $562.6M to $583.4M. Cash and
Bank balances increased to $305.1M from $219.0M last
year, as the Company made efforts to improve its cash
position. Trade and Other Receivables was $1.67B, an
increase of $ 506.4M over the prior year. This increase
was primarily due to growth in revenue and extended
credit terms to key institutions. There continues to be
stringent controls implemented by the Company and the
Management on receivables for non-institutional accounts
which continues to be within industry standards. There was
also a corresponding increase in Trade and Other Payables
to $1.77B, an increase of $604.9M. 27
Consumer Division
Pharmaceutical Division
Analysis by Division
Consumer Division
For the financial year ended March 31, 2014, revenues for the Consumer Division grew by 18.2% ending the year at $7.6B
and Net Profit before tax was $542.3M or a $125.2M increase over the previous year. For the Consumer Division there was strong demand for key products, expansion in market share and improved market
position in several categories. This success was due to focus on in-trade tactics, deployment of additional resources and
marketing activations. There will be continued improvements in distribution within current channels and development in
other untapped areas especially with the imminent launch into new product categories. Pharmaceutical Division
Revenues for the Pharmaceutical Division were relatively flat ending the period at $1.83B compared to $1.80B the
previous year. Net profit before tax was $45.2M or a decrease of 49.7% compared to the previous year. The Division’s
performance was impacted by changes made in business structure with some of our Principals. The transition process
resulted in operational adjustments and temporary disruptions in the supply chain for some key products which
negatively impacted the Division’s revenue and profit performance. There were introductions to the market of products for therapies such as stroke prevention, hyperuricemia and gout.
The launch of this range of products helped to broaden and diversify the current portfolio. The Division’s marketing
capability and technical team were strengthened providing greater coverage. Operational adjustments were also made
to reduce expenses, improve territory and key accounts management to maximize revenues. Given the increase in the
number of generic competitors, changes in the business structure and increased competitive activity, it is clear there
is a paradigm shift in the Pharmaceutical Industry. The Division continues to reinvent itself to remain competitive and have
sustained growth.
2014 Annual Report
Pharmaceutical Principals Represented
2014
Annual
Report
Annual
Report
| 2014LASCO
LASCODistributors
DistributorsLimited
Limited
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Risk Management
The Senior Management of LASCO Distributors Limited is conscious that continued business success will require
heightened awareness and focus. Senior Management has responsibility for monitoring the Company’s risk management
policies and reports to the Board of Directors. Risk management issues are reviewed on a continuous basis to ensure risk
exposure remains minimal in response to changing market conditions, industry-specific issues and the overall business
environment.
The strengthening of our internal controls has resulted in more effective management of risk with improved data
management, consistent reporting and timely response. Throughout the year we embarked on a process reengineering
project with the aim of achieving an entirely technology driven process.
Risk Management is an integral part of our business strategy and as we continue to grow and expand, we remain
committed in our efforts to effectively improve overall efficiency while continuing to manage our risks.
Significant events subsequent to the year end
In July 2014, LASCO Distributors Limited was successful in the appeal to the Privy Council by Pfizer Limited against the
ruling of the Jamaican Court of Appeal. The Privy Council dismissed the appeal brought by and affirmed the decision of
the Jamaican Court of Appeal.
The Company is now free to have the damages caused by the injunction which restrained it from trading in LAS
Amlodipine assessed by the Court. Our attorneys will now take steps to proceed with the assessment by the Court as
soon as the Court calendar allows.
• Astra Zeneca
• Bayer Schering Pharma
• BSN Medical
• Cipla
• Cipla Veterinary
• Community Drug Centre
• CSL Behring AG
• Fresenius Kabi
• LatMedical
• LASCO Vitamins
2014 Annual Report
• LASMED
• MSN
• Neon
• Novartis Pharma
• Pharmascience
• Roche Diabetes Care
• Roche Diagnostics
• Roche Servicios S.A.
• Sirmaxo
• Ziotis
Corporate
Social
Responsibility
LASCO demonstrates its continued commitment to Jamaica
through its sustained support of critical developmental areas such
as education, health, security, sports and the environment.
LASCO’s flagship Corporate Programmes consist of partnerships
with public sector bodies to recognize the best of Jamaica’s public
servants, which includes the Nation’s educators, police and nurses.
In recognition of LASCO’s commitment to the Nation, the American
Chamber of Commerce Jamaica (AMCHAM) selected the company
as the 2013 AMCHAM Corporate Social Responsibility Awardee in the
Large Organisation Category. LASCO is also integrally involved in its surrounding communities of
Central Village and Red Hills Road, mainly through its adoption of the
Gwen Neil and Collins Close Basic Schools.
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31
Health
Education
LASCO/NAJ
Nurse of the Year
Principal and Teacher
of the Year
For the past 15 years, LASCO has
been committed to advancing
health and wellness initiatives,
towards the goal of building a
healthy Nation. One of the groups
pivotal to the advancement of the
Nation’s Health Sector are the
nurses. LASCO is continuously
committed to empowering the
stakeholders in the Health Sector,
and is consequently very proud
of its partnership with the Nurses
Association of Jamaica (NAJ).
Miss Shailee Neish, 2013/14 LASCO/NAJ Nurse of the Year (NOY) with Mrs. Tanya Davis-Picknight, 1st runner up NOY (right),
Mrs. Julieth Forrester-Nugent, 2nd runner up NOY (left) and Mr. Peter Chin, Managing Director of LASCO Distributors Limited at the
Awards Ceremony held at the Jamaica Pegasus Hotel. The LASCO/NAJ Nurse of the Year was awarded $150,000, the 1st runner up
received $100,000, while the 2nd runner up received a cheque of $50,000 among other prizes.
Oral Health Month
LASCO partnered with the
Jamaica Dental Association (JDA)
for the fourth hosting of health fairs
to commemorate Oral Health Month,
observed annually in October. LASCO’s participation included a
booth set up at the JDA’s Dental
Symposium, where approximately
600 adults and children benefited
from the partnership. Health fairs
were hosted at the Dental Clinic in
Port Maria and Kingston, offering
dental evaluation, cleaning and
other services.
LASCO/NAJ Nurse of the Year 2013/14 Shailee Neish (left) administers a pressure test to a patron at the Dental Association of Jamaica
Health Expo held at the Girls Guide Association in Kingston, during Oral Health Month.
LASCO views education as one of the central
pillars of advancement for the Nation, and is
proud to support educational initiatives. Since
1997, LASCO and the Ministry of Education (MoE)
have collaborated to recognise some of Jamaica’s
most outstanding teachers, with the category of
LASCO/MoE principal added in 2006.
Mrs. Janet Walters, LASCO/MoE Teacher of the Year (right), recieves an award from Mr. Peter Chin, Managing Director of LASCO
Distributors Limited (left), at the 2013/14 Awards Ceremony held at the Jamaica Pegasus Hotel. Mrs. Walters is a Master Teacher in
Primary Education at the John Rollins Success Primary in St. James
Read Across Jamaica
LASCO staff members and its education
corporate ambassadors participated in the
annual Ministry of Education (MoE) Read
Across Jamaica Day, observed during
Education Week in May. Dr. Margaret Bailey,
2012/13 LASCO/ MoE Principal of the Year
read to students at Spanish Town Primary and
Collins Close Basic Schools.
Dr. Margaret Bailey (right), LASCO/MoE Principal of the Year 2012/13 addresses Grade 5 students of Spanish Town Primary, during a
visit to the school on May 7, in observance of Read Across Jamaica Day.
Gleaner Children’s
Own Spelling Bee
In its continued support of academic
competitions amongst our Nation’s youth,
LASCO has been an ongoing sponsor of the
Gleaner Children’s Own National Spelling Bee.
As part sponsor of the Spelling Bee, LASCO
awarded product-filled gift baskets to the
finalists, chaperones, and coaches taking
part to care for their nutrition during the
competition.
One of the hardworking coaches of the Gleaner Children’s Own Spelling Bee was presented with a LASCO gift basket by Brand
Representative Sherianne Thompson (left).
2014 Annual Report
32
Environment
National Security
LASCO Re-leaf Environmental
Awareness Programme (REAP)
LASCO encourages environmental stewardship
through the LASCO Re-leaf Environmental Awareness
Programme (REAP), an environmental programme in
primary level schools. The programme seeks to embark
upon environmental awareness building among children,
encouraging them to become more deeply involved in
the care of the environment, emphasizing recycling, and
conservation. The programme has directly reached over
4,000 students, in over 80 schools, collecting in excess
of 20,000 plastic bottles and planting over 2,500 trees
island-wide.
LASCO/JCF
Police of the Year
LASCO has partnered with the Jamaica
Constabulary Force (JCF) since 2000, to
recognise some of the Nation’s exceptional law
enforcement officers. Corporal Hodel Harris of
the St. Mary Division won the coveted
LASCO/JCF Police of the Year Award, recieving
a cash prize of $250,000, LASCO gift baskets,
among other prizes. The 10 finalists of the 2014/15 LASCO/JCF Police of the Year Awards present Hon. Lascelles Chin, Chairman of LASCO Affiliated
Companies with a plaque, as a symbol of their appreciation for his support of the JCF over the past 13 years.
LASCO/JCF
Police of the Year
annual Clean up
Project
As a part of the LASCO/JCF Police of the Year
programme, the finalists select and execute a community
outreach activity. This year, the finalists opted to paint
the Morant Bay Primary School library, as well as give
motivational talks to the students.
Jeanette Holness, LASCO Sales Representative plants a tree, while looking on are Kelia-Gaye Dunbar, Marketing Manager for LASCO
Distributors (middle row), Julieth Forrester-Nugent, 2nd runner up, LASCO/NAJ Nurse of the Year, entertainer, Half Pint (back row) and
students of the Denham Town Primary School.
Sports
Social Development Commission
(SDC) National Twenty/20 Community
Cricket
Sport plays an important role in nurturing community
development and cohesion. To signify its belief in contributing
to building the Nation, one community at a time, LASCO has
supported the SDC National Twenty/20 Community Cricket
competition for two consecutive years. The competition
has proven to be integral to preserving a slice of Caribbean
cricket culture and has united many communities in the spirit
of healthy competition.
A member of the Junction/Bull Savannah (red gear) plays a sweep shot to assist in securing his team’s victory over Richmond Park in
the 2013 SDC cricket finals.
LASCO in the Community
Inspector Mark Goffe (left), representing the St. Catherine South
Division, speaks to a student during a motivational session at
the Morant Bay Primary School.
Corporal Dhaima Campbell of the Services Branch, assists in
painting the library at the Morant Bay Primary School.
LASCO is integrally involved in the community as a cofounder and steering committee member of the White
Marl/Central Village Business and Community Committee.
The Company also provides support to a number of basic
schools in the surrounding areas of Red Hills Road and
White Marl, where the Company’s offices are located. In the
last 10 years, LASCO has adopted the Collins Close and
Glen Neil Basic Schools, providing breakfast programmes,
as well as support to the schools’ Christmas treats.
This little one gave the sign of approval to the LASCO team, as she and her friends enjoyed the company of Brand Representative,
Renee Rose at the Collins Close Basic School Christmas treat.
2014 Annual Report
33
2014 Annual Report LASCO
LASCODistributors
DistributorsLimited
Limited
34
35
Consumer Promotions
Marketing, Advertising &
Promotions
Win with Curves
LASCO launched its consumer promotion “Win
with Curves” in April 2013 which gave consumers
the opportunity to win great prizes including spa
gift certificates, gift vouchers and personal care
gift baskets. Following the Grand Draw, 1st place
winners Latoya Johnson, Denise Morris and Mae
Foster each received US$1500 while the 2nd place
winner, Deone Reid received a weekend for herself
and two friends at Gran Bahia Principe Jamaica
Hotel and 2nd runner up Karlene Wallace won a
Samsung Galaxy S3. Latoya Johnson collects a US$1500 cheque from Renee Rose, LASCO Brand Representative, at the Company’s White Marl,
St. Catherine offices.
$1M Reasons to Smile
The “$1 Million Reasons to Smile” consumer
promotion was launched in August 2013.
Mr. Bertram Andrade emerged the lucky
winner of $1M at the grand draw held in
November while monthly prize winners for
September and October, Kemoy Bailey and
Deanne McKenzie-Webb each won a 32”
Samsung LED TV.
Bertram Andrade is all smiles as he collects his Grand Prize of $1 Million from Kelia-Gaye Dunbar, Marketing Manager for LASCO
Distributors Limited.
LASCO Food Drink Mix & Win
The LASCO Food Drink Mix & Win promotion gave
consumers a chance to win exciting cash prizes,
including one of five fortnightly prizes of $15,000 for
a total of four draws. In addition, consumers were
also entered to win exciting grand prizes of 1st place
$1.5M, 2nd place $500,000 and 3rd place $250,000.
The Mix & Win promotion came to a close in May
2013 with Tasshawn Ward, Veronia Swaby and
Walter Jackson taking first second and third place
respectively.
The lucky winners in the LASCO Food Drink Mix and Win promotion in a photo opportunity with LASCO team members, at the
handover ceremony held at the LASCO offices in White Marl.
2014 Annual Report
36
37
36
2014 Annual Report
38
39
New Products
Within the financial year the Consumer Division further strengthened its product portfolio and expanded its
categories. In January 2014, this included representation and distribution of the full complement of the Salada
portfolio products, inclusive of fine coffee and hot beverages.
Positive feedback from our consumers allowed us to offer variants within some of our existing categories, while
LASCO’s aim of offering affordable quality products were fulfilled through the launch of new products.
c.
LASCO Sensitive Enamel Care has Potassium Nitrate which
reduces pain and sensitivity in teeth due to cold, heat, acid or sweet. Sensitive Enamel Care is an affordable product,
costing up to 50% less than other brands. This product came to market in November 2013.
d.
An easy to mix traditional Jamaican Cocoa. LASCO Cocoa was launched in October 2013.
e.
LASCO French Vanilla Instant Chocolate Mix provides a rich creamy French Vanilla flavour. The new variant was launched in
February 2014.
a.
The Salada portfolio consists of coffee and hot beverages including Salada Tea, known for its exotic flavour and aroma,
Jamaica Ginger Instant Tea, made with natural Jamaican ginger root and the renowned Jamaica Mountain Peak coffee.
f.
b.
LASCO Low Sodium Vegetables and Sweet Corn are alternatives offering 70% and 60% lower sodium levels respectively
as oposed to their original variants. Low Sodium Vegetables and Sweet Corn were launched in November 2013.
Tropifrut Juice Drink with a juice content of 12 – 15% in four refreshing flavours: Peach Iced Tea, Guava, Apple and
Grape in an attractive, easy grip bottle was launched in September 2013.
g.
LASCO Baby Yum Wheat and Honey Cereal offers a new and popular addition to the LASCO Baby Yum line. Baby Yum
Wheat and Honey Cereal was launched in January 2014
h.
Jack and Jill Baby Bulk Diapers offer affordable, quality diapers in a convenient bulk pack. The product came to market in
February 2014.
2014 Annual Report
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41
PHARMACEUTICAL DIVISION
Medical Association
of Jamaica
Annual Symposium
Kerry-Ann O’Sullivan, Representative,
Raymond Campbell, former PMS
Representative, Damian Wright,
Medical Representative, Melissa
Hutchinson Sales Promoter, Marshella
Miller, Sales Promoter at the Medical
Association of Jamaica Annual
Symposium, held in June 2013.
Pharmaceutical
Society of Jamaica
Annual Retreat
(L-R) Marshella Miller,
Pharmaceutical Division Sales
Promoter, Cora Baker, Roche
Diabetes Care Representative,
Hortense Edwards (far right),
General Manager of the
Pharmaceutical Division interact
with Pharmacists.
2014 Annual Report
Cipla Product Launch
LASCO Distributors Limited
Pharmaceutical Division formalized
its 13 years of partnership with
Cipla Limited, at the launch held on
September 25, 2013.
Dr. Mansingh (standing), shares a light
moment with Governor General, His
Excellency the Most Hon. Sir Patrick
Linton Allen (left), who was the guest
speaker at the event. Sharing in the
moment is Hon. Lascelles Chin, Chairman
of LASCO Affiliated Companies and Shri
Pratap Singh, High Commissioner of India.
MSN Product Launch
(Febuday)
Medical Association of Jamaica
in collaboration with MSN Labs
and LASCO Distributors Limited
Pharmaceutical Division hosted the
launch of Febuday in February 2013.
Dr. Terry Baker, Consultant Pulmonologist/
SMO at the National Chest Hospital,
poses a question during a discussion
at the launch.
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43
HUMAN RESOURCEs
A strong and dedicated workforce is one of the pillars of success for LASCO Distributors Limited.
LASCO recruits, develops and retains a highly talented work force that supports our dynamic and
growth oriented organization. The company currently has a strong permanent staff complement
of 371 across the Pharmaceutical and Consumer Divisions. LASCO further demonstrates its
commitment to nation building through the provision of employment to many other categories of
employees.
A tradition of excellence, team work, warm customer service and accountability continues to be the
hallmark of our staff, who are guided by the company’s mission to be the best... always. In keeping
with our Mission, LASCO believes in employee development and therefore develops and engages
our employees with training and a competitive staff benefits programme. Staff participate in a
number of seminars and conferences which cover critical areas such as leadership, food science,
customer service, management and supervisory skills development. With a holistic approach to
staff development, the Human Resource Department co-ordinates special activities on days such as
Valentine’s Day, Father’s Day, Mother’s Day and Administrative Professional Day, among others.
As LASCO Distributors Limited closes the curtains on its 25th Anniversary, the Company is confident
in its highly competent workforce, poised to take the Company to new levels and growth.
2014 Annual Report
45
Independent Auditors' Report to the Members
45
FINANCIAL STATEMENTS
Statement of Comprehensive Income
47
Statement of Financial Position
48
Statement of Changes in Shareholders' Equity
49
Statement of Cash Flows
50
Notes to the Financial Statements
51
LASCO Distributors Limited Financial Statements
BU
RI
SC
47 to 79,
LA
20
14
FIN
O
DI
ST
ANCI
TO
RS
AL
LI
M
IT
ED
ST
ATE
M
ENTS
Annual 2014
Report LASCO DISTRIBUTORS LIMITED
Annual 2014
46
47
LASCO DISTRIBUTORS LIMITED
STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
YEAR ENDED 31 MARCH 2014
Annual 2014
48
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
STATEMENT OF FINANCIAL POSITION
49
Annual 2014
50
NOTES TO THE FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
51
Annual 2014
52
53
Annual 2014
54
55
Annual 2014
56
57
Annual 2014
58
59
Annual 2014
60
61
Annual 2014
62
63
Annual 2014
64
65
Annual 2014
66
67
Annual 2014
68
69
Annual 2014
70
71
Annual 2014
72
73
Annual 2014
74
75
76
Annual 2014
Annual 2014
77
Annual 2014
78
79
NOTES
NOTES
80
81
82
NOTES
ANNUAL GENERAL MEETING
Postage
Stamp
Proxy Form
I/We
of
being a Member/Members of the above-named Company, hereby appoint
of
or failing him/her,
of
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held at the
Knutsford Court Hotel, Kingston 5 on September 30, 2014 at 11:30am and at any adjournment thereof.
I desire this form to be used for/against the resolutions.
Signed this
day of 2014
Signature:
Unless otherwise directed the proxy will vote as he thinks fit.
NOTES:
1. When completed, this form must be received by the Registrar of the Company at the address
given below, not less than forty-eight (48) hours before the time for holding the meeting. 2. The Proxy Form should bear stamp duty of $100.00 which may beadhesive and duly cancelled by
the person signing the proxy form.
3. If the appointer is a Corporation, this Form of Proxy must be executed under its common seal or
under the hand of an officer or attorney duly authorized in writing.
Send to:
The Registrar and Transfer Agent
Jamaica Central Securities Depository
40 Harbour Street
Kingston
Distributors Limited
27 Red Hills Road, Kingston 10
Jamaica, W.I.
www.lascojamaica.com

2014 - Lasco Jamaica Limited

Transcription

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