Distributors Limited€¦ · business and today it has now come to fruition. Another measure of...

Distributors Limited

2015ANNUAL REPORT

1

2015 Annual Report LASCO Distributors Limited 1

VISIONTo become a global corporate leader, through innovation and

entrepreneuriship. 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.

MISSIONOur mission is to provide quality products and services

to our customers, ensure profi tability and promote employee development.

Being the best...Always.

MIS

SIO

N & V

ISIO

N

2 2015 Annual Report LASCO Distributors Limited

3


COMPANY INFORMATION

4 Notice of Annual General Meeting To adopt, receive and consider

resolutions

6 Corporate Data LASCO divisions and their locations

7 Shareholders' Profi le A report on the volume & percentage

shareholdings in the Company

STATEMENTS8 Five Year Financial Review

10 Chairman's Statement 12 Directors' Profi les

REPORTS

15 Corporate Governance An outline of the responsibilities of the

committees

17 Directors' Report

18 Managing Director’s Report

20 Executive Management Team

22 Management Discussion & Analysis Company Overview

Business Review

Analysis by Division

FEATURES

29 Corporate Social Responsibility34 Marketing, Advertising & Promotions

FINANCIAL REPORT

44 Financial Statements

OTHER INFORMATION84 Proxy Form

CONTENTS


Ordinary Resolutions

1. Audited Accounts

To consider and if thought fi t, pass the following resolution:

“THAT the Audited Accounts for the year ended March 31, 2015 and the Reports of the Directors and Auditors, circulated with notice convening the meeting, be and are hereby adopted.”

2. Ratifi cation of Dividend

To consider and if thought fi t, pass the following resolution:

“THAT the Interim Dividend of $0.03 cents per stock unit was paid on December 9, 2014 to shareholders on record at the close of business on November 25, 2014, is declared fi nal for the year 2014, be and is hereby ratifi ed.”

3. 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 offi ce at each Annual General Meeting.

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 offi ce since their last election.

The Directors retiring under these Articles are Mr. Anthony Chang and Sir Kenneth Hall and being eligible, offer themselves for re-election.

To consider and if thought fi t pass the following resolution:

(i) “THAT retiring Director Mr. Anthony Chang be and is hereby re-elected a Director of the Company.”

To consider and if thought fi t pass the following resolution:

(ii) “THAT retiring Director, Sir Kenneth Hall, be and is hereby re-elected a Director of the Company.”

4. Directors Remuneration

Article 77 of the Articles of Incorporation empowers the Directors or any appropriate Committee of the Board of Directors to fi x the remuneration of the Directors.

Article 111 empowers the Board of Directors, or any appropriate Committee of the Board of Directors, to determine, the remuneration of the Managing Director.

NOTICE IS HEREBY GIVEN that the Fourth Annual General Meeting of LASCO DISTRIBUTORS LIMITED will be held on Wednesday,

September 30, 2015 at 12:00 p.m. in the Blue Mountain Suite of The Knutsford Court Hotel, 16 Chelsea Avenue, Kingston 5 for the

following purposes:

NOTICE OF ANNUAL GENERAL MEETING

2015ANNUAL REPORT

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5. Appointment of Auditors and their Remuneration

To consider and if thought fi t, pass the following resolution: “THAT Messrs BDO, having signifi ed their willingness to serve, continues in offi ce as Auditors of the Company until the conclusion of the next Annual General Meeting at remuneration to be agreed with the Directors.”

Dated 10th day of June, 2015BY ORDER OF THE BOARD OF DIRECTORS

Vincent A. Chen COMPANY SECRETARY

Vincent A. Chen COMPANY SECRETARY


REGISTERED OFFICELASCO Distributors Limited27 Red Hills RoadKingston 10Jamaica, W.I.Tel: (876) 749-5272 Fax: (876) 749-2966Website: www.lascojamaica.com

SEGMENT LOCATION

LASCO Pharmaceutical Division27 Red Hills RoadKingston 10Jamaica, W.I. Tel: (876) 968-3456-65; (876) 929-7633

Fax: (876) 929-7622

LASCO Consumer Division White Marl, St. CatherineTel: (876) 749-2967-9; (876) 749-5272

Fax: (876) 749-2966

BOARD OF DIRECTORSExecutive DirectorsHon. Lascelles Chin, O.J., C.D.Chairman

Mr. Peter Chin

Managing Director

Non-Executive DirectorsMr. J.A. Lester Spaulding, C.D., J.P. Dr. Eileen Chin, MBA Mr. Anthony ChangSir Kenneth Hall O.N., G.C.M.G., O.J.Mrs. Jacinth Hall-Tracey, MBA

Mr. Gary Peart, MBA

LIST OF SENIOR OFFICERSHon. Lascelles Chin, O.J., C.D.Chairman

Mr. Peter Chin Managing Director

Mrs. Cecilia LewisFinancial Controller

Vincent ChenCompany Secretary

ATTORNEYS-AT-LAWChen Green & Company6 Haining RoadKingston 5Jamaica, W.I.

BANKERSFirst Caribbean International Bank Jamaica Limited23-27 Knutsford BoulevardKingston 5Jamaica, W.I.

Bank of Nova Scotia Jamaica LimitedCnr. Duke & Port Royal StreetsKingstonJamaica, W.I.

National Commercial Bank Jamaica Limited94 Half Way Tree RoadKingston 10Jamaica, W.I.

AUDITORSBDO26 Beechwood AvenueKingston 5Jamaica, West Indies

REGISTRAR AND TRANSFER AGENTS Jamaica Central Securities Depository Limited40 Harbour Street Kingston Jamaica, W.I.

CORPORATE DATAAs at March 31, 2015

2015ANNUAL REPORT

7


Lascelles Chin

Eileen Chin

J. A. Lester Spaulding

Kenneth Hall

Peter Chin

Anthony Chang

1,019,337,780

{ 13,204,100}

1,649,551,260

13,204,100

{1,019,337,780}

4,003,000

2,753,000

2,000,000

913,000

30.2800

0.3922

49.0000

0.3922

30.2800

0.1202

0.0818

0.0594

0.0271

Shareholdings of Directors and Connected Parties as at March 31, 2015

Top Ten Shareholders as at March 31, 2015

East West (St. Lucia) Limited

Lascelles A. Chin Mayberry West Indies LimitedYuan LiaoWayne M. ChinCatherine Adella Peart

JCSD Trustee Services Ltd-Sigma Venture

Mayberry Managed Clients Account Joel Izquierrdo Gonzales Hilda Gonzalez Rosales

1,649,551,260

1,019,337,78081,980,36230,160,30021,054,36023,000,000

21,537,000

20,720,89120,003,00017,118,600

49.00

30.282.410.900.630.68

0.64

0.650.590.51

NAME VOLUME PERCENTAGE

NAME/PRIMARY HOLDER POSITION *CONNECTED PARTY VOLUME PERCENTAGE

SHAREHOLDERS' PROFILE

Peter Chin

Cecilia Lewis2,000,000

203,000

0.0594

0.0060

Shareholdings of Senior Managers and Connected Parties as at March 31, 2015NAME/PRIMARY HOLDER POSITION *CONNECTED PARTY UNITS PERCENTAGE

*Eileen Chin - Direct

*East West (St. Lucia) Ltd.

*Lascelles Chin - Direct


FIVE YEAR FINANCIAL REVIEWFIRST CALENDAR YEAR OF DATA 2011 NUMBER OF YEARS OF DATA 5 REPORTING VALUES $’000

Number of Shares Issued

Stock Holders Equity ($’000)

Percentage increase over prior year

Market Capitalisation

Total Borrowings

INCOME STATEMENT

Turnover ($’000)

Percentage increase over prior year

Profi t before Taxation ($’000)

Percentage (decrease)/increase over prior year

Net Profi t for the year ($’000)


Net Profi t Attributable to Stockholders ($’000)


Total Comprehensive Income


IMPORTANT RATIOS

Debt to Equity Ratio

Return on Equity

Profi t before Taxation/Sales

Return on Asset Ratio

Quick Ratio

Current Ratio

Return on Sales

Shareholders Equity per Stock Unit-JA$

Earning per Stock Unit-Basic-JA$

Closing Stock Price-JSE-JA$

Price Earning Ratio

3,366,431

$1,887,101

28.9%

$3,534,752,708

$45,778

2013

$8,255,354

10.65%

$506,833

-11.2%

$506,833

-7.9%

$506,833

-7.9%

$506, 833

-7.9%

0.02

26.86%

6.1%

16.63%

1.22

2.33

6.1%

0.56

$0.15

$1.05

6.97

3,366,431

$2,397,137

27.0%

$5,049,646,725

$0

2014

$9,464,744

14.64%

$587,464

15.9%

$587,464

15.9%

$587,464

15.9%

$587, 464

15.9%

0.00

24.51%

6.2%

14.11%

1.45

2.23

6.2%

0.71

$0.17

$1.50

8.82

3,366,431

$1,464,428

52.4%

$4,046,450,242

$0

2012

$7,460,509

10.42%

$570,711

40.5%

$550,377

79.6%

$550,377

79.6%

$550, 377

79.6%

0.00

37.58%

7.6%

23.80%

1.45

2.33

7.4%

0.44

$0.16

$1 .20

7.35

2015 20132014 2012 2011

3,373,931

$2,882,961

20.3%

$4,655,199,926

$2,182

2015

$11,146,892

17.77%

$546,730

-6.9%

$546,730

-6.9%

$546,730

-6.9%

$579, 541

-1.3%

0.00

18.96%

4.9%

10.25%

1.16

1 .94

4.9%

0.85

$0.16

$1.37

8.56

336,643

$961,174

88.6%

$1,077,257,968

$2,812

2011

$6,756,555

15.64%

$406,250

184.9%

$306,398

213.5%

$306,398

213.5%

$306, 398

212.4%

0.00

31.88%

6.0%

16.55%

1.15

1.86

4.5%

2.86

$1.02

$3.20

3.14

2015ANNUAL REPORT

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10

Distributors Limited CHAIRMAN’S STATEMENT

“The Board of Directors is pleased with the performance of LASCO Distributors Limited. The company achieved revenue growth of 17.8% to end the fi nancial year at $11 .1B, which is the highest annual revenue recorded in the company’s history.”

2015ANNUAL REPORT

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2015ANNUAL REPORT

The Board of Directors is pleased with the

performance of LASCO Distributors Limited. The

company achieved revenue growth of 17.8% to end

the fi nancial year at $11 .1B, which is the highest

annual revenue recorded in the company’s history. As

it surpassed the milestone of $10B in annual sales.

Total comprehensive income was $579.5M compared

to $587.5M the previous year. Net profi t was 6.9%

lower compared to last year due to a $32.8M

adjustment from the implementation of a share option

plan granted to our key employees and directors as

an incentive. Notwithstanding, the company earned

$546.7M in net profi t.

The shortfall in net profi t was also due to the initial

investment in technology and staffi ng. Indirect and

direct employment was in excess of 100 persons

and consisted of merchandisers, sales promoters,

salesmen and delivery agents. This increase in staff

was in preparation for new products such as iCool and

other powdered beverages from LASCO Manufacturing

Limited, as well as distribution for Unilever brands.

It was indeed another productive year as the company

was able to successfully enter the competitive and

attractive beverage category. The iCool brand of

water, fl avoured water and juice drinks was met

with confi dent acceptance by our customers and

enthusiastic demand from consumers. For this, we

are truly pleased and appreciative of the overall

support. It was a strategic decision over 10 years

ago to acquire the White Marl property based on the

solid infrastructure, land space for expansion and

most importantly a very good water source. Given

this competitive advantage, it has always been the

expectation to launch into the branded beverage

business and today it has now come to fruition.

Another measure of success was the signing of a

distribution agreement for the Unilever portfolio of

brands. Unilever is one of the largest multinational

companies of Fast Moving Consumer Goods (FMCG),

offering premium and well-known brands in many

categories. As with all our principals, we are

committed to collaborating and playing our role to

effectively grow the Unilever business in Jamaica.

With all the challenges there were many successes

and we congratulate the Management for developing

and implementing effective strategies. The Board

of Directors continues to have confi dence in the

management team and will provide the support and

guidance needed to achieve our strategic objectives.

We applaud our staff for their commitment, hard

work and professionalism in their role of achieving a

commendable performance. Thank you to our Board

for their steadfastness, expertise and stewardship.

Last year’s achievements forms the pathway for

strengthening the company’s position to be the

distributor of choice. This is in alignment with our

mission to provide quality products and service to

our customers. For the future, we will continue to drive

innovation, focus on quality and value, provide fi rst-rate

service and increase profi t for our shareholders in the

pursuit of fulfi lling our vision.

Hon. Lascelles A. Chin, OJ, CDEXECUTIVE CHAIRMAN


DIRECTORS' PROFILES

Mr. Peter Chin was appointed Managing Director of LASCO Distributors Limited in November, 2011. Mr. Chin has over 20 years experience in the distribution industry and has several senior management positions at LASCO Distributors Limited. Some of the positions include Logistics Manager with responsibility for distribution and procurement, Marketing Manager and General Manager for the Consumer Division.

Mr. Chin has gained wide experience in various functional areas such as 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. Chin has managed the oversight of several mission-critical projects, leading the modernisation of the distribution center infrastructure and heading the steering committee that implemented the system-wide ERP network software now in place at the Company. Currently Mr. Chin serves on the Board of Directors for LASCO Financial Services Limited and LASCO Manufacturing Limited.

Recipient of the Order of Jamaica for his philanthropy and contribution to the development of commerce in Jamaica, Lascelles Chin is the Chairman and Founder of the LASCO Affi liated Companies.

This Jamaican born entrepreneur who ventured into the fi eld of business 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 refi ning and chicken processing. Based on his wealth of knowledge, business experience and being always mindful of his humble beginnings, the Chairman constantly sought to develop and distribute affordable products.

The Chairman shares his ideas and energy with his business colleagues and has contributed greatly to prominent Jamaican organisations such as the Jamaica Industrial Development Corporation, the Jamaica Exporters’ Association and the Jamaica Promotions Corporation (JAMPRO). He is a current director of the University of the West Indies’ School of Nursing Advisory Board and the King’s House Foundation. He is also the Executive Chairman of the Board of LASCO Manufacturing Limited and LASCO Financial Services Limited.

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 of Jamaica (PSOJ) Hall of Fame.

Hon. Lascelles Chin, O.J., C.D.EXECUTIVE CHAIRMAN

Mr. Peter ChinMANAGING DIRECTOR

13


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, fi nancial reporting and the release of timely information to the market.

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. Spaulding has been the Non-Executive Chairman of the Board of Directors of the RJR Communications Group since 2008. He began with RJR in 1965, and rose from Accountant to the position of Managing Director in 1978 and Managing Director/Chairman in 1994. 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 Hope Zoo. He currently serves as Director in community service organisations Peace and Love in Schools (PALS) and the Caribbean Community of Retired Persons (CCRP). He is an Honorary Rotarian of the Kingston Rotary Club.

Dr. Eileen A. Chin is an active member of the Board of Directors of LASCO Financial Services Limited, LASCO Manufactoring Limited and Chairman of the Portia Simpson Miller Foundation (PMS). She is also a member of the Board of Trustees of the American International School of Kingston (AISK). 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 Girón School of Medicine, and migrated to Jamaica in 1998.

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 served as Managing Director of LASCO Manufacturing Ltd. from 2010 to 2015 where she was responsible for the planning and implementation of the US $30 million expansion of the manufacturing facilities.

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.

Mrs. Hall-Tracey is a Non-Executive Director of the company. She holds a MBA from Edinburgh Business School, a Bachelor of Arts Degree (Hons.) from the University of the West Indies, Corporate Treasury and Cash Management Certifi cate 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.

In 2009 Mrs. Hall-Tracey was appointed Managing Director of LASCO Financial Services Limited. She began as General Manager and Compliance Offi cer 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.

Mr. J.A. Lester Spaulding, C.D., J.P.NON-EXECUTIVE DIRECTOR & MENTOR OF THE BOARD

Dr. Eileen Chin, MBADIRECTOR

Mrs. Jacinth Hall-Tracey, MBANON-EXECUTIVE DIRECTOR


Mr. 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 about 20 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.

After being appointed to the Board of Directors only a year later in 2005, Peart has served as Director at Mayberry Investments Limited and at several other well-known Jamaican entities. Currently, he sits on the Board of LASCO Distributors Limited, Port Authority of Jamaica, Jamaica Anti-Doping Commission and Mona School of Business.

He is Chairman of the Boards of Jamaica Bauxite Institute and Betting Gaming and Lotteries Commission. He is also an alternate Board member of the Jamaica Stock Exchange and currently serves as Vice President of the Jamaica Securities Dealers Association.

Mr. Peart has a B.Sc. in Economics from the University of the West Indies (Hons.) and an MBA from Florida International University. Beyond the business world, Mr. Peart is a member of the Rotary Club of St. Andrew North.

Mr. Chang is a graduate of the University of the Western Ontario, Richard Ivey School of Business (BA (Hons)). He has also completed many professional courses and was awarded a Hubert Humphrey Fellowship by the American University Washington, D.C. (1996). Prior to joining the LASCO affiliated entities, Mr. Chang was the Managing Director of T. Geddes Grant.

Mr. Chang is also a board member of various local institutions and companies including Scotia Group Limited, Scotia DBG Investments Limited, Digicel Jamaica Limited and Consolidated Bakeries Jamaica Limited. He is also a commissioner for the Jamaica Debates Commission, the organization that coordinates national political debates during Government elections. In the past, he was President of the Jamaica Chamber of Commerce and 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 Development Approval Centre at NEPA).

The Most Honourable Professor Kenneth Hall holds a Doctorate of Philosophy Degree in history from Queen’s University, Ontario, Canada. He has 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 Honourable Professor Kenneth Hall worked to advance regional integration during his tenor 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.

Mr. Gary Peart

Officer after developing his management techniques throughout the financial industry over the course of about 20 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.

After being appointed to the Board of Directors only a year later in 2005, Peart has served as Director at Mayberry Investments Limited and at several other well-known Jamaican entities. Currently, he sits on the Board of LASCO Distributors Limited, Port Authority of Jamaica, Jamaica Anti-Doping Commission and Mona School of Business.

He is Chairman of the Boards of Jamaica Bauxite Institute and Betting Gaming and Lotteries Commission. He is also an alternate Board member of the Jamaica Stock Exchange and currently serves as Vice President of the Jamaica Securities Dealers Association.

Mr. Peart has a B.Sc. in Economics from the University of the West Indies (Hons.) and an MBA from Florida International University. Beyond the business world, Mr. Peart is a member of the Rotary Club of St. Andrew North.

The Most Honourable Professor Kenneth Hallin history from Queen’s University, Ontario, Canada. He has 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 Honourable Professor Kenneth Hall worked to advance regional integration during his tenor 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.

Mr. Peart has a B.Sc. in Economics from the University of the West Indies (Hons.) and an

Mr. Chang

of Business (BA (Hons)). He has also completed many professional courses and was awarded a Hubert Humphrey Fellowship by the American University Washington, D.C. (1996). Prior to joining the LASCO affiliated entities, Mr. Chang was the Managing Director of T. Geddes Grant.

Mr. Chang is also a board member of various local institutions and companies including Scotia Group Limited, Scotia DBG Investments Limited, Digicel Jamaica Limited and Consolidated Bakeries Jamaica Limited. He is also a commissioner for the Jamaica Debates Commission, the organization that coordinates national political debates during Government elections. In the past, he was President of the Jamaica Chamber of Commerce and 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 Development Approval Centre at NEPA).

Mr. Gary Peart, MBANON-EXECUTIVE DIRECTOR

Mr. Anthony ChangNON-EXECUTIVE DIRECTOR

The Most Hon. Professor. Sir Kenneth Hall, O.N. G.C.M.G, O.J.NON-EXECUTIVE DIRECTOR

2015ANNUAL REPORT

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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 confi dence and maximization of shareholder value. In fulfi lling 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.

Board CompositionAs at March 31, 2015, a total of eight members comprised the Company’s Board, two executive and six non-executive Directors. The members are experienced and qualifi ed 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.

Board Sub-CommitteesThere 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.

The Audit and Compliance CommitteeThis Committee, chaired by Mr. J.A. Lester Spaulding, has direct responsibility to assist the Board by overseeing the fi nancial reporting and the 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 fi scal discipline- open and accurate fi nancial reporting and - timely disclosures

For the fi nancial 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 fi nancial 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 fi nancial statements and the annual audited fi nancial 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 fi nancial year under review, the Committee met as mandated and made its recommendation to the full Board of Directors.

CORPORATE GOVERNANCEAs at March 31, 2015

Mr. J.A. Lester Spaulding, C.D., J.P. CHAIRMAN AUDIT & COMPLIANCE COMMITTEE


Below is a summary of the register in respect of the meetings for the fi nancial year ended March 31, 2015.

Meetings LDL AGM LDL BOD LDL Compensation Audit Committee CommitteeNo. of Meetings 1 4 1 4Lascelles Chin 1 4 1 4

Peter Chin 1 4 - 4

Eileen Chin 1 4 - -

Anthony Chang 1 3 - -

J. A. Lester Spaulding 1 4 1 4

Sir Kenneth Hall 1 4 1 4

Jacinth Hall-Tracey 1 3 - -

Gary Peart 1 3 - -

The following table outlines the composition of each Committee:

Meetings Compensation Committee Audit CommitteeLascelles Chin √ √

Peter Chin - -

Eileen Chin - -

Anthony Chang - -

J. A. Lester Spaulding √ √

Sir Kenneth Hall √ √

Jacinth Hall-Tracey - -

Gary Peart - -

2015ANNUAL REPORT

17


DIRECTORS' REPORTAs at March 31, 2015

LASCO DISTRIBUTORS LIMITED DIRECTORS’ REPORTAs at March 31, 2015

The Directors of LASCO Distributors Limited (the Company) are pleased to present their report for the fi nancial year ended March 31, 2015.

FINANCIAL RESULTS The Statement of Profi t or Loss and other Comprehensive Income shows total Comprehensive Income of Five Hundred Seventy Nine Million, Five Hundred Forty One Thousand Dollars (J$579,541,000). 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 - 5 100% Years 6 - 10 50%

Details of the results for the year were approved by the Board on May 28, 2015 and a comparison with the previous year is set out in the Statement of Profi t or Loss and other Comprehensive Income on page 47.

DIRECTORSThe Directors of the Company as at March 31, 2015 are the Hon. Lascelles Chin, Peter Chin, Eileen Chin , J.A. Lester Spaulding, Kenneth Hall, Anthony Chang, Gary Peart and Jacinth Hall-Tracey.

In accordance with Article 97 and Article 98 of the Articles of Incorporation of the Company, Mr. Anthony Chang and Sir Kenneth Hall shall retire by rotation and being eligible, offer themselves for re-election.

AUDITORSThe Auditors of the Company, BDO, of 26 Beechwood Avenue, Kingston 10, Jamaica, have expressed their willingness to continue in offi ce as Auditors of the Company until the conclusion of the next Annual General Meeting.

DIVIDENDOn December 9, 2014, an interim dividend of three Cents ($0.03) per share was paid to shareholders on record as at November 25, 2014. This dividend was declared fi nal in respect of the year 2014.

The Directors extend special thanks and appreciation to our shareholders for the confi dence that they have placed in LASCO Distributors Limited. We look forward to a rewarding and productive year.

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 10th of June 2015FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Vincent A. Chen COMPANY SECRETARYVincent A. Chen

18 2015 Annual Report LASCO Distributors Limited 18 18 2015 Annual Report LASCO Distributors LimitedLASCO Distributors Limited

Peter M. Chin

MANAGING DIRECTOR

2015ANNUAL REPORT

19


MANAGING DIRECTOR’S REPORT

For the fi nancial year ending March 31st, 2015, the company increased revenue by 17.8% to $11.1B. Net profi t was $546.7M, a 6.9% decline over prior year. Profi t performance was impacted by an increase in operating expenses due to additional staffi ng for the higher volume beverage business and new business agreements. The additional staff were required throughout the distribution network to strengthen the route to market team.

The strategic direction of the company is to achieve growth through building its own brands and brands from established Principals. This model enables the company to achieve a greater scale of operation by maximising on effi ciencies and at the same time, provide focus based on expertise and route to market structure. Ultimately our customers will benefi t from access to major brands, improved service quality and marketing support from a sole distributor through the same distribution network. In the private label business, the company has consistently brought new products to market every year. With each new innovation, there has been tremendous success measured by market acceptance and growth. The past year has been no different with the successful launch of the LASCO iCool brand of water, fl avoured water and juices. While there were some setbacks in the iCool launch timing and product availability for the beverage business, we were able to utilise those delays to perfect the launch planning and marketing execution. The challenges came at an expense with added resources but the adjustments made by the management team resulted in greater benefi ts from the tremendous demand generated for the products. For principal representation, the company successfully signed distribution agreements for the Unilever portfolio and Monymusk premium rums. These brands expand our product offering, which in turn increases our consumer reach and provides opportunities for greater channel penetration. We are indeed proud to represent these quality and well-known brands within our portfolio.

The addition of multiple brands and products not only required added staff, but also resulted in changes to the staff

structure which were necessary to ensure focus and growth. Integral to this process was the recruitment of key personnel and the development of our own team members to ensure the right fi t with precise competencies. For the year, focus was given to improving effi ciencies in work fl ow processes, capacity utilisation and energy saving initiatives. The company has been signifi cantly investing in renovations and increasing the capacity of the current distribution centres. This preparatory work was done to ensure the best use of the current infrastructure and to facilitate the smooth transition to phase 1 of the warehouse expansion project. Energy usage is a major concern and several steps were made to upgrade existing lighting and cooling systems. This direction is the pathway for the future towards more advanced energy saving options such as solar technology.

There were some key objectives achieved over the past year; successful brand launch and new business growth. Major investments in human resources and setup costs were necessary and now forms the basis for growth. For the coming year, focus will be on promoting brand awareness and increasing market share growth for new and core products. There will also be aggressive strategies to drive growth for new business arrangements.

To the management and staff who had confi dence in the direction and witnessed the developments, thank you for the commitment and successful execution. We anticipate the usual support as we journey together towards another exciting and successful year. To our Directors, thank you for the guidance and support; it is truly appreciated. We are thankful for the continued confi dence and support of our consumers, customers and shareholders.

Peter M. ChinMANAGING DIRECTORPeter M. Chin


EXECUTIVE MANAGEMENT

TEAM

2015 Annual Report

Consumer Division

Pharmaceutical Division

L-R Hortense Edwards, General Manager Jacqueline Morgan, Operations Manager Joy Mitchell-Grant, LASMED District Manager Carl Tracey, Trade Manager Andrea Cover, Regulatory & Institutional Business Manager Michael Wehby, Key Account Manager

L-R Cecilia Lewis, Financial ControllerJociane Berry-Smith, Purchasing Manager

Andrew Reid, Operations Manager Carrolyn Llewellyn, Sales Manager Kelia-Gaye Dunbar, Marketing Manager Catherine Goodall, Marketing Manager - Beverages Sandra Russell, Human Resource Manager Marcia Brown, Quality Control Manager Richard Smith, Warehouse Manager

PETER CHIN, MANAGING DIRECTOR

2015ANNUAL REPORT

21


Shared Services

L-R Ruel Thompson, Safety/Security & Community Relations Manager Joel Gonzalez, Property Manager Phyllis Sutherland-Brown, Credit Manager Peter Hylton, Information Technology Manager


MANAGEMENT DISCUSSION AND ANALYSISCOMPANY OVERVIEWLASCO Distributors Limited is a leading distribution company in Jamaica. The business was established over 27 years ago by the Honourable Lascelles Chin. In a relatively short time, the company has rapidly increased its market presence by offering quality products to market at competitive prices. This market positioning and focus on satisfying consumer needs has led LASCO to become market leaders in several major categories in the industry. The company is well known for several innovations and product introductions, namely our fl agship product LASCO Food Drink and LaSoy, a range of soy beverage products and most recently the iCool range of water, fl avoured water and juice drinks.

The company was listed on the Jamaica Stock Exchange in October 2010. The company comprises of two divisions - the Consumer Division and the Pharmaceutical Division. The segmentation is based on product specialization and it allows for greater focus to meet our customers’ needs.

The company distributes one of the widest range of fast moving consumer goods under its own LASCO label and other sub brands such as Curves and iCool. From the Consumer Division, the major segments are food, beverage, personal care, baby care, adult incontinence and home care products. For the Pharmaceutical Division, 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 brand of generics LASMED. The company is the distributor for the full Unilever range of homecare, food and personal care brands in Jamaica. The global brands distributed for Unilever are premium and well known such as Breeze, Mistolin, Red Rose, Lipton, Flora, Blue Band, Dove, St. Ives and Axe. The distribution portfolio also includes fi ne local brands such as the high quality coffee brand Jamaica Mountain Peak from Salada and premium Monymusk Rum distributed for National Rums of Jamaica. The distribution channels include Supermarkets, Chain Stores, Wholesalers, Small format stores, Schools, Pharmacies, Government Institutions and Health Care facilities. The product distribution is over several hundred and comprises of over 4,000 SKUS.

FINANCIAL PERFORMANCE

RevenueTotal revenues for the company increased by 17.8% to $11.15B over the previous fi nancial year. Revenue was driven by steady growth in our core brands and the successful venture into the beverage category with the launch of the iCool brand of water, fl avoured water and juices. Additional revenue growth was achieved with the distribution agreement for the Unilever brands.

Gross Profi tGross profi t increased by 9.1% to $2.0B. Gross profi t margin was 18.0% compared to 19.4% last year. The change in gross profi t margin was due to the focus on driving volumes to gain immediate market share and penetration for our key brands. This aggressive route to market strategy serves to stimulate consumer demand and brand affi nity, which will enable sustainable growth and future profi tability.

2015ANNUAL REPORT

23


Total Comprehensive IncomeTotal comprehensive income was $579.5M compared to $587.5M last year. There was a deployment of a share option plan for which 124,821,556 shares were granted to our key employees and directors as an incentive. Profi ts from Operations slipped by 6.9% being mostly affected by a decrease in the gross profi t margin, which saw a movement from $589.5M to $548.9M. Net profi t was $546.7M compared to $587.5M, after a $32.8M adjustment due to the implementation of the share option plan. The diluted earnings per stock unit was 16.09¢ compared to 17.29¢ the prior year.

FINANCIAL SUMMARY 2015 vs 2014

2014/2015$’000’

2013/2014$’000’

Change$’000’

Change %

Revenue

Gross Profi t

Gross Profi t%

Operating Expenses

Op/Ex to Sales

Profi t From Operations

Non-Operating Expense

Profi t Before Taxation

Taxation

Net Profi t Per Year

Earnings Per share

11,146,892

2,001,199

18.0%

1,531,113

13.7%

548,917

2,187

546,730

-

546,730

$0.16

9,464,744

1,834,307

19.4%

1,295,518

13.7%

589,508

2,044

587,464

-

587.464

$0.17

1,682,148

166,892

-1.4%

235,595

0.0%

(40,591)

143

(40,734)

-

(40,734)

-$0.01

17.8%

9.1%

18.2%

-6.9%

7.0%

-6.9%

0.0%

-6.9%

-5.9%

Other IncomeThere was a strong performance in sales of diagnostic products which resulted in an increase in commissions earned. This combined with interest earnings from deposits resulted in an increase of 55.4% or $28.1M in Other income.


Administrative, Selling & Promotional ExpensesTotal operating expenses increased by 18.2% or $235.6M. This increase is primarily due to additional staff required for the entrance in the high volume beverage category and new distribution agreement for the full Unilever portfolio.

The additional resource was needed to strengthen the existing fi eld force and back offi ce operations. This commitment will enable the company to deepen penetration and coverage of our current distribution base and to gain new customers.

Advertising and promotional costs increased by 16.6% or $27.1M. The company continues to aggressively invest in sales and marketing activities to build the core brands and to drive success for new innovations. The overall investment in staffi ng and marketing will drive market demand, ensure sustainable growth and future profi ts.

Depreciation Expenses grew by 95.2% from $22.5M as at March 2014 to $43.9M as at March 2015. The main drivers associated with the increase was the expansion costs.

Staff CostsDirectors’ FeesProperty ExpensesTransportation & CommunicationAdvertising & PromotionManagement & Consultancy FeesInsuranceStationeryUtilities & PostageSecurityDonations & SubscriptionsBank ChargesAuditors’ RenumerationForeign Exchange LossDepreciationOther Administrative ExpensesShare Options - Non-Executive DirectorsShare Options - Service Provider

934,2635,692

28,89859,260

190,62845,84932,07311,36959.43851,38242,69926,8875,000

(28,580)43,87515,8254,0582,497

1,531,113

Total Administrative, Selling & Other Expenses 2015 ($’000) 2014 ($’000)

770,6453,657

29,60146,590

163,48741,90328,42511,15750,25243,74142,48117,4384,6007,220

22,47711,844

--

1,295,518

2015ANNUAL REPORT

25


FINANCIAL POSITIONAt the end of the fi nancial year, total assets amounted to $5.335B compared to $4.163B last year, an increase of 28.1%. Property, plant and equipment made an impact on this classifi cation with an increase of $296.1M moving from $292.4M to $588.5M over prior year. This was mainly due to increase in capital expenditure related to the warehouse expansion and from assets under construction of $211.3M. There were also improvements in existing infrastructure, energy saving equipment and other enhancements in operational capability.

Current assets increased from $3.871B to $4.746B; Inventory was $1.897B compared to $1.313B last year. This increase was due to the addition inventory for core products and inventory transfers based on new distribution agreement for the Unilever range of products. Short Term Investments decreased to $171.4M from $213.4M as a result of utilization of funds to purchase inventories associated with our new businesses. Trade and Other Receivables was $2.085B, an increase of $432.9M over the prior year. The increase was due to the continued growth in revenue of core products as well as new business. There was also a resultant increase in Trade and Other Payables to $2.449B, an increase of $683.2M.


ANALYSIS BY DIVISION

Consumer DivisionFor the Consumer Division, revenues increased to $9.1B or 19.4% growth. Revenue growth was largely driven by additional sales in the beverage category and the Unilever range. Net profi t was down to $497.4M or a 8.3% decrease.

The increase in volume growth was experienced mainly in the Consumer Division. There was a signifi cant increase in throughput from high rotation beverage products to specialised products which required careful handling such as ice cream and frozen novelties. The route to market team had to be expanded as there were additional requirements in sales, merchandising, promotions and distribution. This investment in staffi ng will allow greater coverage in multiple channels and enhance the level of service provided.

With the platform set, the focus for the coming year will be strong brand support and rollout for the product innovations to increase market share growth. High collaboration with our Principals to develop key strategies to drive growth for these new business arrangements will also be critical.

Pharmaceutical Division Revenue for the Pharmaceutical Division increased to $2.03B, an 11% increase over the previous year. Net profi t before tax was $49.3M, an increase of 9.0% compared to the previous year. Despite portfolio changes by some of our Principals, which lead to the reduction of some products previously carried, the Pharmaceutical Division was still able to improve revenue and profi t performance. The efforts to streamline the fi eld force operations, improve internal effi ciencies and management of the supply chain to reduce stock losses, were successful.

Last year we were proud to receive the PMS Crystal Leaf Award for sales performance from one of our key Principals Pharmascience (PMS). For new business, the Division launched three fi rst to market generic products for cardiovascular treatment. In addition there was the acquisition of distribution rights for additional over-the-counter (OTC) products from a current supplier for the categories of cough and cold, maternal care and multivitamins.

For the coming year, there are several other products in the pipeline given the continuous effort to register fi rst to market generics, which has a high success rate. There are also other opportunities to partner with the Government as the tender results are expected to be published in the coming year. We await to determine the full extent of our tender submission. The focus will be on these opportunities in addition to leveraging the current core range for future growth.

2015ANNUAL REPORT

27


Focus Areas, Objectives for 2016 and BeyondOver the past year, several projects were initiated and signifi cant accomplishments made which were in alignment with the strategic direction. The focus now is to build on this platform as there are high expectations but also tremendous opportunities.

The following will drive sustainable growth and profi tability:

• Delivering on revenue growth and profi tability - consistent with our growth plans

• Increase Principal Brands to over a third of overall revenue - achieving in market growth in collaboration with our Principals

• New innovations to market - offering our consumers quality products, providing value and satisfying their needs. Increase market share and growth for new innovations, growing innovations to market leadership position within 3 years

• Defending and expanding our core product drivers

• Improving operational capacity - Building a state-of-the-art distribution center as part of the completion of Phase 1 of the expansion project, within the expected timeline and budget

• Continuous process improvement - upgrading our technology platforms to increase effi ciencies and competitiveness

• Service delivery to our invaluable customers - expansion of our distribution coverage by placing our products where our consumers are.

RISK MANAGEMENT Risk management is a critical component to business success. The Audit Committee, which is the advisory body to the Board of Directors, governs the fi nancial reporting and auditing processes. From the approved Audit Plan, Internal Audit conducts ongoing assessments of organizational procedures and controls in order to safeguard the Company’s assets. Management and Functional Leads for the respective operational areas, are responsible for the day to day assessment and management of risks to ensure minimal exposure from both internal and external risks.

As LASCO Distributors Limited continues to grow through the introduction of new products, new business arrangements and major expansion thrust, Management remains focused on the process of risk management. Risk Management is directed at the highest level resulting in a business culture which drives our internal teams to develop and deploy best practices in assessing and managing risk.

SIGNIFICANT EVENTS SUBSEQUENT TO YEAR END The matter was set down for assessment of the damages payable to LASCO Distributors Limited by Pfi zer, the case is set for fi ve days in the week commencing 18th January, 2016. The expectation is that shortly after the assessment there will be a ruling from the court informing the company on the process on how it will be entitled to collect from Pfi zer. The company would be disappointed if the award was not for a substantial amount.

BOARD OF

DIRECTORS

AUDIT

COMMITTEE

INTERNAL

AUDIT

MANAGEMENT


2015ANNUAL REPORT

29


29

2015 Annual Report 2015 Annual Report LASCO Distributors LimitedLASCO Distributors Limited 29 29

292929292929

CORPORATESOCIAL RESPONSIBILITY




Our passion for a better Jamaica is the driving force behind LASCO’s corporate social responsibility programmes. We believe in the sustainable value of health, education, national security, sports and environmental stewardship, as catalysts for Jamaica’s development.

Partnerships are important to us, as

together we believe we can do more;

building Jamaica through people. We

are committed to uplifting and improving

the lives of the everyday Jamaican, by

not only providing affordable solutions

but also recognising excellence. We are

proud to highlight beacons of excellence

among core public sector groups, such

as teachers, police offi cers and nurses.

Being a good neighbour in our communities

is the bedrock of our values, which is also

refl ected in our adoption of neighbouring

schools and giving support to community

centric initiatives.

HEALTHLASCO/NAJ Nurse of the Year

Health is one of the critical pillars of

a nation’s productivity. We believe

in providing support to everyday key

health stakeholders who tirelessly serve

beyond the call of duty to advance health

care initiatives. Since 1999, LASCO has

partnered with the Nurses Association of

Jamaica (NAJ) in the annual staging of the

National Nurse of the Year programme,

which recognises and pays tribute to

outstanding members of the nursing

profession.

(L-R) Miss Shashana Lawrence, LASCO/NAJ

Nurse of the Year 2014-2015 with Minister of Health,

Dr. the Hon. Fenton Ferguson, Hon. Lascelles Chin,

Chairman of the LASCO Affi liated Companies and Mr.

Peter Chin, Managing Director of LASCO Distributors

Limited. Miss Shashana Lawrence walked away

with $200,000 and the champion trophy courtesy of

LASCO along with a host of other prizes.

Oral Health Month

Each year, we are happy to brighten the

smiles of hundreds of school children and

community members. True to our spirit of

teamwork, we have been partnering with

the Jamaica Dental Association (JDA) for

over fi ve years to host a series of health

fairs to commemorate Oral Health Month.

Observed in October, this year’s Oral Health

Month reached over 320 children from

eight (8) elementary and primary

level schools in the Kingston

and St. Catherine areas.

The participants in the

health fairs benefi tted from

dental evaluation, cleaning

and talks on dental care by

dentists, the LASCO/NAJ Nurse

of the Year and other medical

representatives.

over fi ve years to host a series of health

fairs to commemorate Oral Health Month.

Observed in October, this year’s Oral Health

Month reached over 320 children from

eight (8) elementary and primary

level schools in the Kingston

and talks on dental care by

dentists, the LASCO/NAJ Nurse dentists, the LASCO/NAJ Nurse

of the Year and other medical

(L-R) Miss Shashana Lawrence, LASCO/NAJ

Nurse of the Year 2014-2015 with Minister of Health,

Dr. the Hon. Fenton Ferguson, Hon. Lascelles Chin,

Chairman of the LASCO Affi liated Companies and Mr.

Peter Chin, Managing Director of LASCO Distributors Peter Chin, Managing Director of LASCO Distributors

Limited. Miss Shashana Lawrence walked away Limited. Miss Shashana Lawrence walked away Limited. Miss Shashana Lawrence walked away Limited. Miss Shashana Lawrence walked away

with $200,000 and the champion trophy courtesy of with $200,000 and the champion trophy courtesy of

Miss Shashana Lawrence, LASCO/NAJ Nurse of the Year

2014-2015 with the children at the Nurses Association

of Jamaica annual Easter Bunny Treat.

2015ANNUAL REPORT

31

2015 Annual Report LASCO Distributors Limited 31 2015 Annual Report 2015 Annual Report

EDUCATIONLASCO/MoE Principal and

Teacher of the Year

Education is the path of advancement

for many Jamaicans and we remain

committed to supporting initiatives which

fulfi ll this mandate. For over 18 years,

LASCO and the Ministry of Education

(MoE) have collaborated to recognise

outstanding Jamaican educators through

the LASCO /MoE Teacher and Principal of

the Year programme. Over 12 exceptional

fi nalists were feted at this year’s annual

ceremony with Marymount High teacher,

Miss Anieta Bailey and principal of

Hampton High, Mrs. Heather Murray

emerging as the top contenders. Both

were awarded cash prizes of $250,000,

champion trophies, gift baskets and

spa certifi cates courtesy of LASCO and

an all-inclusive with the - annual ASCD

Conference and Exhibit Show in Houston,

Texas.

Read Across Jamaica Day

LASCO has been a supporter of the

Jamaica Teachers’ Association’s national

initiative, Read Across Jamaica Day,

an observance of literacy in Jamaican

schools. Celebrated in May during

Education Week, Read Across Jamaica

Day furthers LASCO’s objective of

advancing the nation through education.

Our staff and the reigning LASCO/Ministry

of Education Teacher and Principal of the

Year participate by reading to students

from their favourite books. Mrs.

Janet Walters, Teacher of the Year

2013-2014 read to students at

Providence Heights Infant and

Flankers Primary and Junior High in

Montego Bay, while Mr. Norman Malcolm,

Principal of the Year 2013-2014, read to

students at Danny Williams School for

the Deaf and Hope Valley Experimental

School in St. Andrew.

Mrs. Janet Walters, LASCO/MoE Teacher of the

Year 2013-2014 with students of the Providence

Heights Infant School.

champion trophies, gift baskets and champion trophies, gift baskets and

spa certifi cates courtesy of LASCO and

an all-inclusive with the - annual ASCD

Conference and Exhibit Show in Houston,

(L-R) LASCO/ MoE Teacher of the Year,

Miss Anieta Bailey with Principal of the

Year, Mrs. Heather Murray at the Awards

ceremony held in November 2014.

of Education Teacher and Principal of the of Education Teacher and Principal of the

Year participate by reading to students Year participate by reading to students

from their favourite books. Mrs. from their favourite books. Mrs.

Janet Walters, Teacher of the Year Janet Walters, Teacher of the Year

2013-2014 read to students at 2013-2014 read to students at

Providence Heights Infant and Providence Heights Infant and

Flankers Primary and Junior High in Flankers Primary and Junior High in Flankers Primary and Junior High in Flankers Primary and Junior High in

Mr. Norman Malcolm, LASCO/ MoE Principal of the Year

2013- 2014 engages students at the Danny Williams

School for the Deaf through an interpreter.


NATIONAL SECURITYLASCO/JCF Police of the Year

Safety is a pressing concern of the everyday

Jamaican. We believe in recognising

excellence among our police men and

women, who risk their lives to guard our

safety. We are pleased to partner with

the Jamaica Constabulary Force (JCF)

in staging the LASCO/JCF Police of the

Year Awards programme. The coveted

title was won by Det. Sgt. Ava Lindo of

the Inspectorate Division, who received

$250,000 in prize money and the LASCO/

JCF Police of the Year trophy.

LASCO/JCF Police of the Year Annual Clean

Up Project

The dining hall of the Marie Atkins Night Shelter received a facelift from the 2014-2015 fi nalists in the LASCO/JCF Police of the Year programme. Residents were also treated to breakfast sponsored by LASCO, which was served by the fi nalists and LASCO staff members. Each year, the fi nalists select an entity for their community outreach project.



LASCO/JCF Police of the Year 2015-2016,

Det. Sgt. Ava Lindo with First Runner-up,

Sgt. Randy Sweeny(second left); Second

Runner-up Sgt. Christopher Ward

(second right), Police Commissioner

Dr. Carl Williams (left) and Managing

Director of LASCO

Distributors Ltd.

Mr. Peter Chin.

The camaraderie among the

fi nalists in the 2015-2016

LASCO/JCF Police of the Year

programme was palpable

Corporal Nickoyon Brown assists with the

painting of the dining hall of the Marie Atkins

Night Shelter, during the 2015-2016 LASCO/

JCF Police of the Year Clean Up Project.

2015ANNUAL REPORT

33


ENVIRONMENTLASCO continues to partner with The

Rootz Releaf Project to embark upon an

awareness building programme entitled

LASCO REAP (Releaf Environmental

Awareness Programme). REAP targets

primary school level children, both actively

and passively, encouraging them to

become more deeply involved in caring for

the environment, emphasising recycling,

and conservation. The programme directly

reaches over 6,500 students and has

resulted in the planting of 4,500 trees

island-wide and the collection of over

40,000 plastic bottles.

SPORTSSocial Development Commission (SDC)

National Twenty/20 Community Cricket

Sports contribute to nurturing the

spirit of cohesion and development in

communities. LASCO is proud to impact

communities through its support of the

SDC T/20 Community Cricket competition.

While preserving the Caribbean’s cultural

signifi cance of cricket, the competition

also lends itself to giving back to the

community. The winning teams are proud

to give back a portion of their prize money

to their respective communities.

2015ANNUAL REPORT

LASCO IN THE COMMUNITYWe take our responsibility of being a good

corporate neighbour seriously, which is

refl ected in our involvement as one of the

co-founders and member of the White Marl/

Central Village Business and Community

Steering 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

offi ces are located. In the last 10 years,

LASCO has adopted the Collins Close

and Gwen Neil Basic Schools, providing

breakfast programmes and other support.

The company is also a sponsor of the annual

Christmas treat on a ward of the Bustamante

Hospital for Children.

A player in the 2014 Social Development

Commission T/20

Cricket competition.

A patron at one of the SDC T/20 Community

Cricket competition at the LASCO booth.

Andrea Bough (left), Principal of St. Jago

Cathedral Preparatory School, and Environmental

Club member Toniann Fyffe (front) were happy to

receive new computers from Stephen Newland,

Coordinator, LASCO Re-Leaf Environmental

Programme (REAP) and Kelia-Gaye Dunbar,

Marketing Manager, The school took fi rst place in

the LASCO REAP competition this year

Renee Rose, Brand Manager hands oer a LASCO

goodie bag to a Gwen Neil Basic School during

the school’s Christmas treat.


MARKETING HIGHLIGHTS

2015ANNUAL REPORT

35


2015ANNUAL REPORT

CONSUMER PROMOTIONSCurves Double Covered Promotion. LASCO launched its “Curves Double

Covered” consumer promotion, which

ran from January 19 - March 13, 2015.

Consumers were required to submit any

two (2) Curves Sanitary Napkin package

wrappers to be eligible to win great prizes

including: weekly prizes of J$10,000 cash,

smartphones, personal care gift baskets

and supermarket shopping vouchers. The

Grand Draw was held on March 27 and

the following consumers were the lucky

winners: 1st prize; Merna Lewis, who

received US$4000, 2nd prize; Tasshawn

Ward, who received a Samsung LED Smart

TV and bonus prize of a Samsung Galaxy

tablet, 3rd place; Ariel Latty May won a

weekend for two at the Bahia Principe

Hotel & Resort.

LASCO Food DrinkSpin & Win PromotionLASCO’s top 15 trade locations participated in

the two (2) months Spin and Win promotion,

which began in January and ended in March

2015. Consumers had the opportunity to buy

four (4) sachets of small food drink (120g or

80g) to gain one (1) wheel spin for instant

prizes. Small shop owners also received

incentives to participate.

LASCO’s top 15 trade locations participated in

the two (2) months Spin and Win promotion,

which began in January and ended in March

2015. Consumers had the opportunity to buy

four (4) sachets of small food drink (120g or

80g) to gain one (1) wheel spin for instant

prizes. Small shop owners also received

CONSUMER DIVISION



MARKETING, ADVERTISING

AND PROMOTIONS

A. iCool:

In August 2014, LASCO

Distributors Limited launched

into trade the LASCO iCool

Water, followed by iCool

fl avoured water and juice

drink. The three beverage

categories are further broken

down into 600ml and 6L water;

500ml Cranberry and Cran-

Strawberry Flavoured Water,

along with the 500ml Tangerine

and Fruit Punch Juice Drink.

The attractively packaged,

bottled water features an

environmentally friendly, low

density plastic bottle, with a

sleek and curved design. The

brand, under the tagline ‘iCool

fi Life’, is positioned as trendy,

new, refreshing and economical

to consumers.

B. Jack & Jill Wipes

The new addition to the

LASCO Baby Care category is

a hypoallergenic, alcohol-free

baby wipe that contains aloe

vera and Vitamin E. It is gentle

on baby’s delicate skin and was

introduced in June 2014.

LINE EXTENSION:C. LASCO Caramel Instant

Chocolate

Consumers are now able to

enjoy their favourite Instant

Chocolate sachet brand in the

new rich and delicious Caramel

fl avour, introduced in January

2015.

fi Life’, is positioned as trendy, fi Life’, is positioned as trendy, fi Life’, is positioned as trendy,

new, refreshing and economical new, refreshing and economical new, refreshing and economical new, refreshing and economical

NEW PRODUCTSThe Consumer Division experienced exponential growth in its product portfolio through the acquisition of the local distribution agreement with

Unilever Caribbean and the market introduction of its beverage brand, iCool.

2015ANNUAL REPORT

37


2015ANNUAL REPORT

Unilever:

In January 2015, LASCO

Distributors Limited was

appointed as the exclusive local

distributor for the full portfolio

of Unilever Home, Personal

Care and Food brands. Unilever

produces global leading

products in categories such

as teas, spreads, dressings,

ice cream, detergents, lotions

and shampoos. Some of the

world’s most recognised

brands are made by Unilever

such as: Dove, Vaseline, Lipton

and Red Rose teas, Ben and

Jerry’s Ice Cream, Motions.


The Pharmaceutical Division at LASCO is committed to

working with all our healthcare partners and stakeholders in

the delivery of healthcare. During the past fi nancial year, we

have increased our focus and participation in varied Medical

conferences including Live Medical Webcasts, Pharmacy

Conferences and Workshops.

The Pharmaceutical Division was awarded the prestigious

2014 Crystal Leaf Award for promotional excellence from

Pharmascience International, a Canadian manufacturer of

globally recognised effi cacious drugs.

The Crystal Leaf commemorative trophy was awarded

to the LASCO Pharmaceutical Division for its exemplary

performance in the marketing and sales of Pharmascience

brands. Some of the locally distributed brands which are

a part of the Pharmascience product portfolio are Pediatric

Electrolyte, Entrophen (aspirin) and other prescription items

available in pharmacies island-wide.


MARKETING, ADVERTISING

AND PROMOTIONS

Pharmaceutical Principals Represented

Lasmed

MSN

Neon

Novartis Pharma

Pharmascience

Roche Diabetes Care

Roche Diagnostics

Roche Servicios S.A.

Sirmaxo

Ziotis

Astra Zeneca

Bayer Schering Pharma

BSN Medical

Cipla

Cipla Veterinary

Community Drug Centre

CSL Behring AG

Fresenius Kabi

Latmedical

LASCO Vitamins

PHARMACEUTICAL DIVISION

2015ANNUAL REPORT

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2015ANNUAL REPORT

2015 Annual Report 2015 Annual Report LASCO Distributors LimitedLASCO Distributors Limited

Annual Medical Association of Jamaica Symposium was held on June 6 - 8, 2014 at the Jamaica Pegasus Hotel in Kingston.

Mrs. Hortense Edwards, GM, presenting a gift to the 1st place winner of the Pharmacy Competition.

Guests interact at the LASCO booth

at the Pharmaceutical Society of Jamaica (PSJ)

Annual Retreat

The Pharmaceutical Division also participated

in the Annual Medical Association of Jamaica

(MAJ) Symposium held June 6-8, 2014 at the

The Jamaica Pegasus Hotel in Kingston. Here a Medical Representative engages

with a Physician at MAJ, 2014

The Pharmaceutical Division participated in the The

Pharmaceutical Society Annual Retreat held June

20-22, 2014 at the Sunset Jamaica Grand Hotel,

Ocho Rios, under the theme: Advancing Pharmacy;

Improving Healthcare”.


NEW PRODUCTS

Our Principal brands continue to expand and strengthen their product portfolio to incorporate novel cardiovascular and respiratory drugs and devices and choice oncology therapies.

Used to diagnose and monitor Asthma.

Mask and Spacer allows for improved

patient management of Asthma.

Allows patients to monitor their blood pressure

and pulse rate for improved management of

Hypertension.

2015ANNUAL REPORT

2015 Annual Report LASCO Distributors Limited 41 2015 Annual Report 2015 Annual Report LASCO Distributors LimitedLASCO Distributors Limited 41 41


HUMAN RESOURCES

We are proud of our tradition of service excellence, delivered by our strong and dedicated workforce. The strength of the LASCO team is tantamount to our success, making brand LASCO a force to be reckoned with.

Our exponential growth is driven by the passion of our people. We are dedicated to going beyond the call of duty to provide our consumers, shareholders and other stakeholders with only the best.

We remain committed to our human resource principles such as the commitment to business ethics, and the pledge to commit to innovation and improvement, as well as professional competence. The Human Resource Department coordinates special activities on Valentine’s Day, Father’s Day, Mother’s Day and Administrative Professionals’ Day, among others, in an effort to foster a holistic approach to its staff. With our competent and dedicated staff steeped in our tradition of excellence and accountability, LASCO is equipped and positioned to take on further growth opportunities, in its mandate to maintaining its position as one of Jamaica’s best.

2015ANNUAL REPORT

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Independent Auditors' Report to the Members45

FINANCIAL STATEMENTS

Statement of Profit or Loss and Other Comprehensive Income47

Statement of Financial Position48

Statement of Changes in Equity49

Statement of Cash Flows50

Notes to the Financial Statements51

FINANCIAL STATEMENTS

45


47 to 83,


2015ANNUAL REPORT

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LASCO DISTRIBUTORS LIMITED

STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

YEAR ENDED 31 MARCH 2015


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STATEMENT OF FINANCIAL POSITIONYEAR

ENDED 31 MARCH 2015

2015ANNUAL REPORT

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STATEMENT OF CHANGES IN EQUITY



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STATEMENT OF CASH FLOWSEAR ENDED 31


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NOTES TO THE FINANCIAL STATEMENTS



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2015 Annual Report 2015 Annual Report LASCO Distributors LimitedLASCO Distributors Limited 63





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LASCO DISTRIBUTORS LIMITEDANNUAL GENERAL MEETING

PROXY FORM

I/We

of

being a Member/Members of the above-named Company, hereby appoint

of

or failing him/her,

ofas 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, 16 Chelsea Avenue, Kingston 5 on Wednesday, September 30, 2015 and at any adjournment thereof.

I desire this form to be used for/against the resolutions.

Signed this day of 2015

Signature:

Unless otherwise directed the proxy will vote as he thinks fi t.

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 be adhesive 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 offi cer or attorney duly authorized in writing.

Send to: The Registrar and Transfer Agent Jamaica Central Securities Depository 40 Harbour Street Kingston, Jamaica W.I.

PostageStamp



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