March 13, 2024
Lumber Depot Limited (LUMBER) for the nine months ended January 31, 2024, reported a 1% increase in revenue totalling $1.16 billion compared to $1.15 billion in the corresponding period last year. Revenue for the third quarter had a similar increase to reach $376.85 million relative to $372.87 million for the comparable quarter of 2023.
Cost of sales amounted to $911.41 million (2023: 926.07 million), this represents a decrease of 2% year over year. Consequently, gross profit increased by 11% to $247.50 million compared to $223.55 million for the nine months ended January 31, 2023. The Company booked gross profit of $82.20 million for the third quarter versus $71.34 million reported for the similar quarter of 2023.
Impairment losses on trade receivables closed at $719,782 (2023: impairment gains of $3.10 million). Administrative & other expenses increased by 6% from $121.66 million in 2023 to $129.46 million in the period under review. As a result, profit from operations for the nine months ended January 31, 2024, amounted to $117.30 million, a 12% increase relative to $105.03 million reported in 2023.
Other income for the nine months ended January 31, 2024, amounted to $8.67 million, a 53% uptick from the $5.68 million reported in 2023. Other income for the third quarter amounted to $3.02 million (2023: $2.43 million).
Profit before net finance costs and taxation totalled $125.97 million, a 14% increase from the corresponding period last year (2023: $110.71 million).
Net financial income for the nine months ended January 31, 2024, amounted to $173,255 relative to net finance costs of $3.97 million reported in 2023. Net financial income for the third quarter amounted to $26,455 (2023: net finance costs of $1.42 million).
Profit before taxation for the nine months ended January 31, 2024, had a 18% increase to reach $126.15 million (2023: $106.74 million). There were no taxation charges for the review period (2023: nil). Hence, profit attributable to members, being total comprehensive income for the nine months amounted to $126.15 million, an 18% increase from the $106.74 million reported in 2023. For the third quarter, profit attributable to members, being total comprehensive income for the period was $39.41 million (2023: $28.54 million).
Earnings per share (EPS) for the nine months amounted to $0.18 (2023: $0.15), while EPS for the quarter totalled $0.06 (2023: $0.04). The twelve-month trailing EPS was $0.23, and the number of shares used in these calculations was 706,237,500.
Notably, LUMBER’s stock price closed the trading period on March 12, 2024, at a price of $2.53 with a corresponding P/E ratio of 10.86x.
Balance Sheet Highlights:
The company’s assets totalled $767.15 million (2023: $662.17 million); a 16% increase year over year largely attributed to cash and cash equivalents, which grew by 54% to reach $250.50 million (2023:162.55 million).
Shareholder’s equity was $662.49 million (2023: $548.76 million), representing a book value per share of $0.94 (2023: $0.78).
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