December 10, 2020
For the six months ended October 31, 2020:-
The Lumber Depot Limited (LUMBER), for the six months ended October 31, 2020, reported revenue of $699.55 million, an increase of 9% year over year (2019: $642.26 million). Revenue for the quarter amounted to $338.35 million, relative to the $317.02 million reported in the corresponding period last year.
Cost of sales for the six months amounted to $562.14 million. Cost of sales for the quarter amounted to $267.52 million versus the $253.67 million reported in 2019. Consequently, gross profit for the period closed at $137.40 million while for the quarter gross profit amounted to $70.83 million (2019: $63.35 million).
Moreover, the Company reported administrative and other expenses of $75.65 million for the period. Notably, Management highlighted that, “Despite the challenges generally associated with trading during the COVID 19 pandemic, Lumber Depot has continued to trade positively. The business benefited from improved revenues as well as the improved tax status of the business arising from our listing on the Junior Market of the JSE.”
Operating profit for the period amounted to $65.93 million, up 41% relative to the $46.85 million reported in 2019. While for the quarter, operating profit closed at $36.60 million (2019: $22.33 million).
Finance costs and income for the period under review amounted to $4.40 million and $3.78 million, respectively. Finance costs for the quarter totalled $1.87 million (2019: $1.78 million), whilst finance income amounted to $1.40 million (2019: $14,828).
Profit before taxation for the six months ended October 31, 2020 amounted to $66.04 million, down 27% year over year from the $90.20 million booked in 2019. There was no taxation for the period, as such net profit for the six months ended at $66.04 million. Net profit for the quarter amounted to $36.13 million relative to the $15.42 million in 2019.
The company noted that, “Lumber Depot recognizes that the COVID 19 pandemic presents challenges for the Jamaican economy. Our strategy is to consistently offer competitive prices on our products and to maintain our service standards while prioritizing the safety of our customers and staff. With our decision to raise equity capital through the JSE, we also benefit from a strong balance sheet that allows us to secure the commercial opportunities that are now available to us and to maintain resilient levels of inventory.”
Earnings per share (EPS) for the six months amounted to $0.09 (2019: $0.05). While, EPS for the quarter totalled $0.05 (2019: $0.02). The trailing twelve months EPS is $0.13. The number of shares used in our calculations is 706,237,500 units. Notably, LUMBER’s stock price closed the trading period on December 9, 2020 at a price of $1.21 with a corresponding P/E ratio of 9.68 times.
Balance Sheet at a glance:
As at October 31, 2020, the Company reported total assets of $434.09 million. This mainly constituted ‘Inventories’ and ‘Investments’ which closed at $131.73 million and $101.29 million respectively.
Shareholders’ Equity totalled $258.28 million. This resulted in a book value per share of $0.37 as at October 31, 2020.
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