December 15, 2021

The Lumber Depot Limited (LUMBER), for the six months ended October 31, 2021, reported revenue of $759.94 million, an increase of 9% year over year (2020: $699.55 million). Revenue for the quarter amounted to $339.86 million, relative to the $338.35 million reported in the corresponding period last year.

Cost of sales for the six months amounted to $584.43 million relative to the $562.14 million reported a year prior. Cost of sales for the quarter amounted to $267.82 million versus the $267.52 million reported in 2020. Consequently, gross profit for the period closed at $175.51 million (2020: $137.40 million). While for the quarter gross profit amounted to $72.04 million (2020: $70.83 million).

Moreover, the Company reported administrative and other expenses of $73.29 million for the period relative to the $75.65 million reported in 2020.

Operating profit for the period amounted to $101.23 million, up 54% relative to the $65.93 million reported in 2020. While for the quarter, operating profit closed at $28.01 million (2020: $36.60 million).

Finance costs and income for the period under review amounted to $4.84 million (2020: $4.40 million) and $1.60 million (2020: $3.78 million), respectively. Finance costs for the quarter totalled $2.22 million (2020: $1.87 million), whilst finance income amounted to $1.05 million (2020: $1.40 million).

Profit before taxation for the six months ended October 31, 2021 amounted to $107.20 million, up 62% year over year from the $66.04 million booked in 2020. There was no taxation for the period, as such net profit for the six months ended at $107.20 million (2020: $66.04 million). Net profit for the quarter amounted to $35.42 million relative to the $36.13 million in 2020.

The company noted that, “Lumber Depot benefits from the favourable corporate income tax treatment associated with our being listed on the Junior Market of the Jamaica Stock Exchange.” Additionally, “The Lumber Depot business has established a market leading position in the communities we directly serve. The company benefits from its strategic location in Papine, which allows it to effectively provide hardware products to areas of the city now experiencing significant high-quality commercial, light industrial and residential real estate development. Lumber Depot has also developed an excellent reputation for service and for delivering good customer value.”

Earnings per share (EPS) for the six months amounted to $0.15 (2020: $0.09). While EPS for the quarter totalled $0.05 (2020: $0.05). The trailing twelve months EPS is $0.26. The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on December 14, 2021 at a price of $3.43 with a corresponding P/E ratio of 13.01 times.

Balance Sheet at a glance:

As at October 31, 2021, the Company reported total assets of $629.92 million (2020: $434.09 million). This represented a 45% increase attributable to a 603% increase in ‘Property, Plant and Equipment’ which closed at $132.17 million (2020: $18.81 million). Additionally, ‘Cash and Cash Equivalents’ rose by 99% to end at $115.06 million (2020: $57.72 million).

Shareholders’ Equity totalled $402.06 million (2020: $258.28 million). This resulted in a book value per share of $0.57 (2020: $0.37).

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