September 12, 2023
Lumber Depot Limited (LUMBER)
Unaudited financials for the three months ended July 31, 2023:
Lumber Depot Limited (LUMBER) for the three months ended July 31, 2023 reported a 4% increase in revenue totalling $417.45 million compared to $399.88 million in the corresponding period last year. Cost of sales amounted to $328.47 million (2022: $318.15 million), this represents an increase of 3% year over year.
Consequently, gross profit increased by 9% to $88.98 million compared to $81.73 million for the three months ended July 31, 2022. Management noted, “The strong financial performance of Lumber Depot in the First Quarter was achieved notwithstanding uncertain economic conditions, including relatively high inflation, increased interest rates, challenges with the availability of certain key hardware items, and a decline in important parts of the construction sector. We believe the solid performance is testimony to our attention to our service levels, competitive pricing, strategic location, and overall business management.”
Impairment losses on trade receivables for the three months ended July 31, 2023, closed at $1.98 million (2022: gain of $6.05 million), while administrative & other expenses amounted to $37.33 million, a 6% decrease relative to $39.67 million reported in 2022. As such, profit from operations increased by 3% to close at $49.69 million (2022: $48.13 million).
Other income for the three months ended July 31, 2023, amounted to $580,050, a 58% decrease relative to $1.38 million reported in 2022.
Profit before net finance costs and taxation totalled $50.27 million a 2% increase from the corresponding period last year (2022: $49.51 million).
Net financial income for the three months ended July 31, 2023, amounted to $2.29 million, a 294% increase relative to net financial costs of $1.18 million reported in 2022.
Profit before taxation for the three months ended July 31, 2023 had a 9% increase to reach $52.56 million (2022: $48.33 million).
There were no taxes incurred during the period under review. As a result, net profit attributable to shareholders for the three months amounted to $52.56 million, a 9% increase from the $48.33 million reported in 2022.
Consequently, earnings per share (EPS) for the three months remained at $0.07 year over year. The twelve-month trailing EPS was $0.21, and the number of shares used in these calculations was 706,237,500.
Notably, LUMBER’s stock price closed the trading period on September 11, 2023 at a price of $2.05 with a corresponding P/E ratio of 9.69x.
Balance Sheet Highlights:
The company’s assets totalled $739.00 million (2022: $649.42 million). The 14% growth in total assets was particularly due to ‘Cash and Cash Equivalents’ increasing by $79.01 million to close at $229.66 million.
Shareholder’s equity was $639.75 million (2022: $527.08 million), representing a book value per share of $0.91 (2022: $0.75).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
