July 3, 2023

Lumber Depot Limited (LUMBER) for the year ended April 30, 2023, reported a 3% decrease in revenue to $1.52 billion compared to $1.57 billion in the corresponding period last year. For the quarter, revenue had a 10% decrease to close at $373.31 million (2022: $413.69 million).

Cost of sales marginally decreased year over year to $1.232 billion (2022: $1.234 billion). Consequently, gross profit decreased by 15% to $290.82 million compared to $340.31 million. The company booked gross profit of $67.26 million for the fourth quarter versus $82.92 million reported for the similar quarter of 2022.

Impairment gains on trade receivables increased by 23% to close at $3.19 million (2022: $2.59 million), while impairment gains on investment and cash & cash equivalent decreased by 98% from $844,263 in 2022 to $15,903 in the period under review. Administrative & other expenses amounted to $153.09 million, a 7% decrease relative to $165.37 million reported in 2022.

Profit before net finance costs and taxation amounted to $149.21 million, a 22% decrease relative to $191.14 million reported in 2022. For the quarter, profit before net finance costs and taxation amounted to $41.67 million (2022: $43.63 million). Net finance costs totalled $4.04 million, a 44% decrease from the $7.25 million recorded last year.

Profit before taxation amounted to $145.17 million, a 21% decrease relative to $183.89 million reported in 2022. For the quarter, profit before taxation amounted to $38.43 million (2022: $40.95 million).

There was no taxation for the year (2022: nil). As a result, profit attributable to members, being total comprehensive income for the year amounted to $145.17 million, a 21% decrease from the $183.89 million reported in 2022. For the quarter, profit attributable to members, being total comprehensive income was $38.43 million (2022: $40.95 million).

Earnings per share (EPS) for the year amounted to $0.21 (2022: $0.26), while for the quarter, EPS totalled $0.05 (2022: $0.06). The number of shares used in these calculations was 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on June 30, 2023, at a price of $2.14 with a corresponding P/E ratio of 10.41x.

Balance Sheet Highlights:

The company’s total assets increased 17% to $681.47 million (2022: $583.25 million). This movement was largely due to a 123% increase in ‘Cash and Cash Equivalents’ to $184.44 million (2022: $82.81 million).

Shareholder’s equity was $587.19 million (2022: $478.74 million), resulting in a book value per share of $0.83 (2022: $0.68).

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