March 3, 2022

Stationery & Office Supplies Ltd. (SOS), for the year ended December 31, 2021, reported year end revenue of $1.12 billion relative to $972.32 million in 2020, a 16% increase, while for the fourth quarter revenues moved from $260.64 million in 2020 to $315.52 million in 2021.

The company’s cost of sales totaled $573.70 million up 9% relative to the $526.89 million reported in 2020. As a result, gross profit climbed by 24% amounting to $551.15 million relative to the $445.43 million booked in 2020, while for the fourth quarter gross profit moved from $101.05 million in 2020 to $131.46 million in 2021.

Administrative expenses totaled $319.53 million up 11% compared to the $286.67 million booked in 2020, while selling and promotion expenses increased by 7% closing the period at $80.26 million relative to the $74.94 million reported the prior year.

The company’s depreciation cost amounted to $26.45 million a decrease of 7% relative to the $28.42 million incurred in 2020, while finance cost decrease by 25% to close at $11.14 million (2020: $14.91 million).

Profit before taxes increased by 199% amounting to $105.51 million relative to the $35.25 million earned in 2020. While, for the quarter, profit before tax closed at $27.36 million versus a profit before tax of $6.62 million reported in the prior comparable quarter.

After tax gain of $1.61 million (2020 charge: $2.16 million), net profit for the year totaled $107.12 million a 224% increase relative to the $33.09 million reported in 2020. Net Profit for the fourth quarter totalled $28.97 million (2020: $4.46 million).

Earnings per share for the year amounted to $0.43 (2020: $0.13), while EPS for the quarter totaled $0.12 (2020: $0.02). The number of shares used in our calculations amounted to 250,120,500 units.  SOS’s stock last traded on March 1, 2022 at $7.48 with a corresponding P/E ratio of 17.47 times.

Balance Sheet Highlights:

Total Assets increased by 5% or $40 million to close at $928.02 million as at December 31, 2021 from $888.02 million the year prior. The movement was due to a 27% increase in ‘Inventories’ which closed at $296.02 million (2020: $232.65 million) as well as a 24% increase in ‘Trade Receivables’ amounting to $123.73 million (2020: $99.39 million). This was partially tempered by a 5% decline in ‘Property, Plant and Equipment’ which totalled $389.21 million (2020: $411.18 million).

Equity attributable to stockholders of the company as at December 31, 2021 stood at $676.83 million (2020: $609.73 million) resulting in book value per share of $2.71 (2020: $2.44).

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