Higher Revenues Bolster YoY Growth in The LAB’s Bottom Line

• An increase in revenue has contributed to a 31.9% YoY increase in LAB’s net profit for the nine months ended July 31, 2021; net profit ended the period at $142.18Mn (EPS: $0.15). 
• Revenue increased by 37.3% YoY, driven by growth in media placement (up 39.4%) and production (up 62.2%). This growth was, however, tempered by a reduction in agency (down 1.8%) during the period. An increase in finance income (+462.2%) also supported earnings growth. 
• The company’s bottom line was however tempered by a 32.6% YoY increase in administration expenses on the back of higher staff costs,  repairs and maintenance of production equipment, depreciation and amortization charges, and lease interest. The increase in staff costs reflects higher work volume. Despite this increase, administrative expenses as a percentage of revenue remain relatively flat at 16.7% compared to 17.3% in the previous period. 
• The LAB’s stock price has increased 7.8% since the start of the year and closed Tuesday’s trading session at a price of $4.20 per share. At this price, the stock trades at a P/E ratio of 19.4x earnings.

Source: (The LAB Financials)