LUMBER reports first quarter net profit of $29.91 million

September 14, 2020

The Lumber Depot Limited (LUMBER), for the first quarter ended July 31, 2020, reported revenue of $361.20 million, an increase of 11% year over year (2019: $325.24 million).

Cost of sales for the period amounted to $294.62 million. Consequently, gross profit for the period closed at $66.58 million.

Moreover, the Company reported an impairment loss on trade receivables of $2.46 million and administrative and other expenses closed the period at $34.79 million.

As a result, operating profit amounted to $29.33 million, up 20% relative to the $24.52 million reported in 2019.

Other income amounted to $731.35 million and finance income totalled $2.38 million for the three months ended July 31, 2020. Additionally, finance cost for the first quarter amounted to $2.53 million. As a result, net financial cost closed at $147,166  (2019: $902,043).

Profit before taxation amounted to $29.91 million, up 24% year over year from the $24.16 million booked in 2019. There was no taxation for the period versus a tax charge of $2.86 million, resulting in net profit of $29.91 million at the end of the first quarter. This represented an increase of 40% relative to $21.30 million booked in 2019.

Earnings per share (EPS) for the first quarter amounted to $0.04 (2019: $0.03). The twelve months trailing EPS amounted to $0.07. The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on September 14, 2020 at a price of $1.10.

Balance Sheet Highlights: 

As at July 31, 2020, the Company reported total assets of $442.43 million, a increase of 18% from the $374.01 million as at April 30, 2020. This mainly constituted to ‘Cash and cash equivalents’ which closed at $98.78 million and Inventories which amounted to $109.50 million.

Shareholders’ Equity as at July 31, 2020 was $222.15 million. This resulted in a book value per share of $0.32 as at July 31, 2020.


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