M&D Giants’ LASM & Wisynco Weather Hurricane Melissa

• Despite the effects of Hurricane Melissa on the broader economy, local manufacturers Wisynco Group Ltd. (WISYNCO) and LASCO Manufacturing Ltd. (LASM) both reported year-on-year earnings growth in earnings for the quarter ended December 31, 2025. Buoyed by robust revenue growth that outpaced its direct costs, Wysinco’s earnings jumped 49.1% to $1.48Bn, while LASM profits grew by a more modest and 5.4% to $698.19Mn.
• Wisynco generated revenues of $16.19Bn, reflecting the benefits of capacity expansion, the rollout of new product lines, including its brewed products at the start of the quarter, and a 14.0% growth in exports. In contrast, LASM experienced a 3.6% decline in revenues, primarily due to a one-week suspension of manufacturing operations following the passage of Hurricane Melissa.
• Notwithstanding the divergence in revenue trends, both companies recorded an expansion in gross margins, with Wisynco’s margin improving by 368 basis points (bps) and LASM’s by 68 bps. The introduction of higher-margin products, which enabled more effective absorption of overhead costs, drove wider margins at Wisynco. Meanwhile, LASM’s margin expansion was mainly driven by reductions in the cost of sales, which offset weaker topline performance.
• Operating expenses for Wisynco increased 16.3% to $4.09Bn, broadly consistent with its scale-up in activity. In contrast, LASM recorded lower operating expenses over the period, reinforcing the cost discipline that supported its earnings growth.
• Looking ahead, both companies remain well-established players locally and regionally and have contributed meaningfully to post-hurricane normalisation in supply chains. That said, Wisynco’s recent commissioning of its brewery is expected to be a key growth driver, complemented by sustained demand across its other product lines as the country rebounds. For its part, LASM is expected to continue to pursue efficiency initiatives aimed at strengthening margins and see modest growth in revenues, given that most of its products are consumer staples. As a result, both companies are likely to continue experiencing earnings growth in the near term.
• Wisynco’s stock has advanced 25.7% year-to-date, while LASM has edged down 1.2%, closing at J$23.42 and J$6.46, respectively on Monday. At its current price, Wisynco trades at a price-to-earnings (P/E) ratio of 18.0x, slightly above the Main Market Manufacturing & Distribution sector average of 17.6x, whereas LASM trades below the sector average at 10.0x

(Sources: JSE & NCBCM Research)