LASCELLES deMercado & Company Limited has over the years garnered a reputation of being one of Jamaica's best run companies ,turning in stellar performances year after year. The Group's performance between 2001 and 2002 was satisfactory, and its first quarter performance for 2003 was outstanding.
The Group has seen operating revenue increased from $9.8 billion in 2001 to $11 billion in 2002, an increase of 12.2 per cent, while net profit increased from $0.965 billion to $1.2 billion over the same period, an increase of 24.4 percent. This is a testament to the Group's liquidity and goes some way in giving an insight into why it has earned its reputation. The first quarter for 2003, when compared with the same quarter last year, shows operating revenue increased by 3.7 per cent, while operating profit grew by 196.2 per cent. The company is incorporated under the laws of Jamaica, and its major activities include cane cultivation, sugar manufacturing, distillation, blending, bottling, distribution, export of alcohol, rums, wines and other liquor based-products. Other areas in which the group is involved are investments, general insurance, distribution of food and consumer supplies, aircraft handling, manufacture and distribution of pharmaceutical preparations, tours in the tourism sector and distribution of motor vehicles, spares and servicing and repairing of motor vehicles.
Chairman of the Lascelles Group, George Ashenheim, expressed satisfaction in the performance of the group over the past two years, and attributes the company's success to the stringent measures which the management has implemented to guide the Group's operations and the dedication and hard work of the employees.
But, with globalisation and the total transformation of the business landscape, how prepared is the Group to meet the challenges of the global market place? The chairman believes that his group is well prepared to handle whatever globalisation has to offer.
"We are fully prepared to take on the challenges of globalisation. We are conducting the affairs of the Group to meet international standards so as to prosper in the extremely competitive world markets. Because we are aware of the challenges of globalisation, we embarked on a massive capital expenditure programme to overhaul our operations. As part of the strategy to achieve readiness, fundamental changes were made to the corporate structure of the Group so as to permit its operations to be organised by product or service. The new corporate structure is designed to sharpen focus in manufacturing and agriculture, distribution, financial and brand marketing activities" said Mr. Ashenheim.
The chairman believes that on-going training is critical if the company is to survive and do well in both the current economic environment and in the future. As a result, the company has invested millions of dollars annually in training and education at all levels of management and staff. According to Mr. Ashenheim, when workers are properly trained and educated they will perform better, have more self-esteem and will become more efficient and productive.
"Notwithstanding the high level of capital expenditure and the corporate reorganisation, the required levels of productivity are only achievable by suitable human resource assets," said Mr. Ashenheim.
WINES AND SPIRITS DIVISION
The wines and spirits division of the group continues to show growth in both the domestic and export markets. The exports of wines and spirits is very encouraging, especially its Appleton Jamaica Rum which has developed brand equity over the years. Data from the Group's financial statement shows that although the group increased sales in these areas their operating profits have not increased.
THE AGRICULTURE DIVISION
The performance in this area has been a little lack-lustre. The Group cannot continue to subsidise this operation for much longer, something will have to give, and this is one of the danger areas in its portfolio. This division must guard against this current trend and must safeguard its capital base and its liquidity position.
INSURANCE DIVISION
The insurance division of the Group's operation is very profitable and should continue to show significant growth, but that will depend on how management deals with future funds, as well as any negative changes in the country's macroeconomic conditions.
However, when the group acquires Jamaica General Insurance Company, it will strengthen its gross premium portfolio to $1.6 billion and net premium of $650 million. This will further boost the group's capital base.
FOOD AND DRUG DIVISION
The food and drug division of the group is a profitable area and based on data from its financial statement, it is going to be one of the main revenue earners for the Group, and should continue to maintain a competitive edge.
AUTOMOTIVE DIVISION
Although this division is profitable the Group needs to be very careful and should take into consideration volatility in the external market, and the possibility of a revaluation of the euro currency against the U.S. dollar and the impact of that on sales.
This division is responsible for Ford, Subaru, and BMW motor vehicles in the Jamaican marketplace.
