December 12, 2023
Lumber Depot Limited (LUMBER)
Unaudited financials for the six months ended October 31, 2023:
Lumber Depot Limited (LUMBER) for the six months ended October 31, 2023, reported a 1% increase in Revenue totalling $782.06 million compared to $776.75 million in the corresponding period last year. Revenue for the second quarter had a 3% decrease to close at $364.61 million compared to $376.87 million for the comparable quarter of 2022.
Cost of Sales amounted to $616.76 million (2022: $624.53 million), this represents a decrease of 1% year over year. Consequently, gross profit increased by 9% to $165.30 million compared to $152.22 million for the six months ended October 31, 2022. The company booked gross profit of $76.32 million for the second quarter versus $70.49 million reported for the similar quarter of 2022.
Impairment losses on trade receivables closed at $2.79 million (2022: Impairment gains of $3.95 million), while Administrative & Other Expenses increased by 4% from $78.69 million in 2022 to $81.59 million in the period under review. As a result, profit from operations for the six months ended October 31, 2023, amounted to $80.94 million, a 4% increase relative to $77.50 million reported in 2022.
Other income for the six months ended October 31, 2023, amounted to $2.02 million, a 19% increase relative to $1.69 million reported in 2022. Other income for the second quarter amounted to $1.44 million (2022: $312,530).
Profit before net finance costs and taxation totalled $82.95 million a 5% increase from the corresponding period last year. (2022: $79.19 million). For the quarter, profit before net finance costs and taxation amounted to $32.68 million ($29.68 million).
Net Finance income for the six months ended October 31, 2023, amounted to $3.78 million, relative to net finance cost of $989,375 reported in 2022. Net Finance income for the second quarter amounted to $1.49 million (2022: Income of $187,803).
Profit before taxation for the six months ended October 31, 2023, had a 11% increase to reach $86.73 million (2022: $78.20 million).
There were no taxes recorded for the period. As such, profit attributable to members, being total comprehensive income for the six months amounted to $86.73 million, a 11% increase from the $78.20 million reported in 2022. For the second quarter, Profit attributable to members, being total comprehensive income was $34.17 million (2022: $29.87 million).
Consequently, Earnings Per Share for the six months amounted to $0.12 (2022: EPS: $0.11), while Earnings Per Share for the quarter totalled $0.05 (2022: EPS: $0.04). The twelve-month trailing EPS was $0.22, and the number of shares used in these calculations was 706,237,500.
Notably, LUMBER’s stock price closed the trading period on December 11, 2023, at a price of $2.39 with a corresponding P/E ratio of 10.98x.
Balance Sheet Highlights
The company’s assets totalled $718.80 million (2022: $644.26 million). The increase in total assets was primarily driven by a 65% uptick in ‘Cash and cash equivalents’ from $117.90 million in 2022 to $194.32 million in the period under review.
Lumber highlighted,“ During the First Half, we improved our facility in Papine through investments in our buildings, yard space, financial control systems and operating equipment”.
Shareholder’s equity was $623.08 million (2022: $520.22 million), representing a book value per share of $0.88 (2022: $0.74).
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