September 9, 2021
The Lumber Depot Limited (LUMBER), for the first quarter ended July 31, 2021, reported revenue of $420.08 million, an increase of 16% year over year (2020: $361.20 million).
Cost of sales for the period amounted to $316.61 million (2020: $294.62 million). Consequently, gross profit for the period closed at $103.47 million (2020: $66.58 million).
Moreover, the Company reported an impairment gain on trade receivables of $6.44 million relative to the loss of $2.46 million a year prior.
Administrative and other expenses closed the period at $36.75 million, 6% higher than the $34.79 million in the three months ended July 2020.
As a result, operating profit amounted to $73.22 million, up 150% relative to the $29.33 million reported in 2020.
Other income amounted to $642,855 and finance income totalled $549,013 for the three months ended July 31, 2021. Additionally, finance cost for the first quarter amounted to $2.63 million, 4% higher than the $2.53 million reported twelve months earlier. As a result, net financial cost closed at $2.08 million (2020: $147,166).
Profit before taxation amounted to $71.78 million, up 140% year over year from the $29.91 million booked in 2020. There was no taxation for the period resulting in net profit of $71.78 million at the end of the first quarter. This represented an increase of 140% relative to $29.91 million booked in 2020.
Earnings per share (EPS) for the first quarter amounted to $0.10 (2020: $0.04). The twelve months trailing EPS amounted to $0.26. The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on September 8, 2021 at a price of $3.00 with a corresponding P/E of 11.34 times.
Management noted that, “Along with the core competitive strengths of Lumber Depot, the strong financial performance during the first quarter was directly related to successful efforts to negotiate adequate stock levels and reasonable cost prices for all key hardware items while maintaining fair selling prices to the market. We also worked hard to maintain commercially reasonable opening hours and staffing levels throughout the COVID 19 pandemic.”
Balance Sheet at a glance:
As at July 31, 2021, the Company reported total assets of $569.13 million, an increase of 29% from the $442.43 million as at July 31, 2020. This mainly constituted to ‘Cash and cash equivalents’ which closed at $150.45 million relative to the $98.78 million booked in 2020.
Shareholders’ Equity as at July 31, 2021 was $394.89 million relative to $222.15 million booked a year prior. This resulted in a book value per share of $0.559 (2020: $0.315).
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.