March 3, 2023

Stationery & Office Supplies Ltd. (SOS), for the year ended December 31, 2022, reported year end revenue of $1.75 billion relative to $1.12 billion in 2021, a 55% increase, while for the fourth quarter revenues moved from $315.52 million in 2021 to $427.33 million in 2022.

The company’s cost of sales totaled $911.92 million up 59% relative to the $573.70 million reported in 2021. As a result, gross profit climbed by 52% amounting to $836.23 million relative to the $551.15 million booked in 2021, while for the fourth quarter gross profit moved from $131.46 million in 2021 to $161.76 million in 2022.

Administrative expenses totaled $399.14 million up 25% compared to the $319.53 million booked in 2021, while selling and promotion expenses increased by 64% closing the period at $131.87 million relative to the $80.26 million reported the prior year.

The company’s depreciation cost amounted to $30.08 million a decrease of 14% relative to the $26.45 million incurred in 2021, while finance cost decrease by 22% to close at $8.71 million (2021: $11.14 million).

Profit before taxes increased by 169% amounting to $283.84 million relative to the $105.51 million earned in 2021. While, for the quarter, profit before tax closed at $22.97 million versus a profit before tax of $27.36 million reported in the prior comparable quarter.

After tax expense of $27.34 million (2021 tax credit: $1.16 million), net profit for the year totaled $256.51 million a 139% increase relative to the $107.12 million reported in 2021. Net Profit for the fourth quarter totalled $3.97 million (2021: $28.97 million).

Earnings per share for the year amounted to $1.03 (2021: $0.43), while EPS for the quarter totaled $0.02 (2021: $0.12). The number of shares used in our calculations amounted to 250,120,500 units.  SOS’s stock last traded on March 2, 2023 at $13.95 with a corresponding P/E ratio of 13.60 times.

Balance Sheet Highlights:

Total Assets increased by 49% or $457.13 million to close at $1.39 billion as at December 31, 2022 from $928.02 million the year prior. The movement was due to a 25% increase in ‘Inventories’ which closed at $368.62 million (2021: $296.02 million) as well as a 62% increase in ‘Trade Receivables’ amounting to $200.13 million (2021: $123.73 million).

Equity attributable to stockholders of the company as at December 31, 2022 stood at $1.10 billion (2021: $676.83 million) resulting in book value per share of $4.41 (2021: $2.71).

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