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).
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.