July 21, 2022
The Lumber Depot Limited (LUMBER), for the year ended April 30, 2022, reported revenue of $1.57 billion, an increase of 10% year over year (2021: $1.43 billion). Revenue for the quarter totalled $413.69 million (2021: $$410.39 million). Management noted, “Lumber Depot had a strong year. Our strategy is to consistently offer competitive prices on our products and to maintain our service standards and inventory availability while prioritizing the safety of our customers and staff. We have been generally successful with this and in turn this has improved our standing with key customers.”
Cost of sales for the period amounted to $1.23 billion (2021: $1.14 billion). Consequently, gross profit for the period closed at $340.31 million (2021: $293.45 million).
Moreover, the Company reported administrative and other expenses of $165.37 million, 7% up from the $154.22 million reported twelve months prior. Impairment gains on trade receivables amounted to $2.59 million relative to Impairment gains of $3.17 million reported for the corresponding period last year.
As such, operating profit for the period amounted to $178.37 million, up 24% relative to the $144.36 million reported in 2021. For the quarter, operating profit totalled $40.09 million compared to operating profit of $54.68 million in 2021.
Other income for the year ended April 30, 2022, amounted to $12.77 million (2021: $3.22 million).
Net finance costs totalled $7.25 million relative to the $2.57 million reported for the year ended April 30, 2021. Of this, finance income amounted to $3.15 million (2021: $6.53 million). However, finance costs closed at $10.40 million (2021: $9.10 million).
Profit before taxation ended at $183.89 million, up 27% year over year from the $145.02 million booked in 2021. There were no taxation charges (2021: $25,254), resulting in net profit of $183.89 million for the 2022-year end (2021: $144.99 million). For the quarter, net profit was $40.95 million relative to a net profit of $64.15 million booked the corresponding quarter last year.
Management noted that, “Over the year ahead, we will continue to judiciously manage our cash and inventory levels with a view to improving shareholder returns while allowing the business to seize opportunities for investment and growth that we expect to arise in Jamaica when economic normalcy returns.”
Earnings per share (EPS) amounted to $0.26 (2021: $0.21). For the quarter, EPS amounted to $0.06 (2021: $0.09). The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on July 21, 2022 at a price of $2.99 with a corresponding P/E ratio of 11.48 times.
Balance Sheet at a glance:
As at April 30, 2022, the Company reported total assets of $583.25 million (2021: $526.63 million). The main contributors were ‘Property, Plant and Equipment’ and ‘Inventories’ which closed at $179.84 million (2021: $21.49 million) and $167.85 million (2021: $131.60 million), respectively.
Shareholders’ Equity as at April 30, 2022 was $478.74 million (2021: $323.11 million). This resulted in a book value per share of $0.68 relative to the $0.46 reported in the corresponding period last year.
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.
