September 11, 2024
Lumber Depot Limited (LUMBER)
Unaudited financials for the first quarter ended July 31, 2024:
Lumber Depot Limited (LUMBER) reported a 7% decrease in revenue to $386.48 million for the first quarter ended July 31, 2024, compared to $417.45 million in the corresponding three months last year.
Despite the challenges, Lumber Depot Limited (LUMBER) has shown resilience. The cost of sales amounted to $294.40 million (2023: $328.47 million), a decrease of 10% year over year. Consequently, gross profit increased by 3% to $92.08 million compared to $88.98 million for the first quarter ended July 31, 2023.
Impairment losses on trade receivables increased by 83% to close at $343,228 (2023: $1.98 million), while Administrative & Other Expenses increased by 31% from $37.33 million in 2023 to $48.78 million for the three months. As a result, Profit from Operations for the first quarter amounted to $42.93 million, a 14% decrease relative to $49.69 million reported in 2023.
Other Income for the three months amounted to $1.75 million, a 201% increase relative to $580,050 reported in 2023. This increase in Income signals the potential for growth from core business operations. Profit before net finance costs and taxation totaled $44.68 million, an 11% decrease from last year’s corresponding period. (2023: $50.27 million).
Net Financial cost for the first quarter ended July 31, 2024, amounted to $549,110, a 76% decrease relative to the $2.29 million reported in 2023.
Profit before taxation for the three months decreased 14% to $45.23 million (2023: $52.56 million).
Profit attributable to members, being the total comprehensive Income for the period for the three months, amounted to $45.23 million, a 14% decrease from the $52.56 million reported in 2023.
Consequently, Earnings Per Share for the three months amounted to $0.06 (2023: EPS: $0.07). The twelve-month trailing EPS was $0.19, and the number of shares used in these calculations was 706,237,500.
Notably, LUMBER’s stock price closed the trading period on September 9, 2024, for $2.75, with a corresponding P/E ratio of 14.33x.
Balance Sheet Highlights
The company’s assets totaled $888.03 million (2023: $739.00 million), showcasing a strong financial position. The total increase in the company’s asset base is attributed to a significant increase of $280 million increase in “Investment Associate” and a 2% YoY increase in “Cash and Cash Equivalents,” ending the quarter at $234.21 million (2023: $229.66 million)
Shareholder’s equity was $724.46 million (2023: $639.75 million), representing a book value per share of $1.03 (2023: $0.91).
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