December 14, 2022
The Lumber Depot Limited (LUMBER), for the six months ended October 31, 2022, reported revenue of $776.75 million, an increase of 2% year over year (2021: $759.94 million). Revenue for the quarter amounted to $376.87 million, relative to the $339.86 million reported in the corresponding period last year.
Cost of sales for the six months amounted to $624.53 million relative to the $584.43 million reported a year prior. Cost of sales for the quarter amounted to $306.38 million versus the $267.82 million reported in 2021. Consequently, gross profit for the period closed at $152.22 million (2021: $175.51 million). While for the quarter gross profit amounted to $70.49 million (2021: $72.04 million).
Moreover, the Company reported administrative and other expenses of $78.69 million for the period relative to the $73.29 million reported in 2021.
Operating profit for the period amounted to $77.50 million, down 23% relative to the $101.23 million reported in 2021. While for the quarter, operating profit closed at $29.37 million (2021: $28.01 million).
Finance costs and income for the period under review amounted to $4.31 million (2021: $4.84 million) and $3.32 million (2021: $1.60 million), respectively. Finance costs for the quarter totalled $2.27 million (2021: $2.22 million), whilst finance income amounted to $2.46 million (2021: $1.05 million).
Profit before taxation for the six months ended October 31, 2021 amounted to $78.20 million, down 27% year over year from the $107.20 million booked in 2021. There was no taxation for the period, as such net profit for the six months ended at $78.20 million (2021: $107.20 million). Net profit for the quarter amounted to $29.87 million relative to the $35.42 million in 2021.
Earnings per share (EPS) for the six months amounted to $0.11 (2021: $0.15). While EPS for the quarter totalled $0.04 (2021: $0.05). The trailing twelve months EPS is $0.22. The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on December 14, 2022 at a price of $3.43 with a corresponding P/E ratio of 10.72 times.
LUMBER mentioned that, “Despite the challenges generally associated with higher interest rates, supply chain disruptions, high commodity prices and a spike in logistics costs, Lumber Depot has continued to trade positively and to deliver strong results. Our strategy is to consistently offer competitive prices on our products and to maintain our service standards and inventory availability while prioritizing the safety of our customers and staff. We have been generally successful with this and in turn this has improved our standing with key customers.”
Balance Sheet at a glance:
As at October 31, 2022, the Company reported total assets of $644.26 million (2021: $629.92 million). This represented a 2% increase attributable to a 21% increase in ‘Investments’ which closed at $143.26 million (2021: $118.58 million). Additionally, ‘Cash and Cash Equivalents’ rose by 2% to end at $117.90 million (2021: $115.06 million).
Shareholders’ Equity totalled $520.22 million (2021: $402.06 million). This resulted in a book value per share of $0.74 (2021: $0.57).
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.