SOS reports 10% increase in year end net profits

Date: March 4, 2019

Stationery & Office Supplies Ltd. (SOS), for the year ended December 31, 2018, reported year end revenue of $1.06 billion relative to $906.51 million in 2017 a 17% increase, while for the fourth quarter revenues moved from $241.63 million to $262.92 million in 2018.

The company’s cost of sales totaled $559.85 million up 16% relative to the $483.49 million reported in 2017. As a result gross profit grew by 19% amounting to $504.51 million relative to the $423.01 million booked in 2017.

Administrative expenses totaled $294.32 million up 24% compared to the $236.63 million booked in 2017, while selling and promotion expenses grew by 23% closing the period at $88.63 million relative to the $72.26 million reported the prior year.

The company’s depreciation cost amounted to $24.29 million an increase of 9% relative to the $22.31 million incurred in 2017, while finance cost increase by 47% to close at $13.93 million (2017: $9.48 million).

Profit before taxes grew by 3% amounting to $84.98 million relative to the $82.28 million earned in 2017.

After tax credit of $ 6.69 million (2017: $684,870), net profit for the period totaled $91.67 million an increase of 10% relative to the $82.97 million reported in 2017.

Earnings per share for the year amounted to $0.37 (2017: $0.33), while EPS for the quarter totaled $0.0004 relative to (2017: $0.10). SOS’s stock last traded on March 1, 2019 at $8.30.

Balance Sheet at a glance:

Total Assets increased by 30% or $249.72 million to close at $853.34 million as at December 31, 2018 from $655.20 million the year prior. The movement was due to a 36% increase in ‘Inventories’ which closed at $215.16 million (2017: $158.71 million). ‘Bank and Cash’ amounted to $52.63 million (2017: $8.30 million).

Equity attributable to stockholders of the company as at December 31, 2018 stood at $494.60 million (2017: $413.76 million) resulting in book value per share of $1.98 (2017: $1.65). The number of shares used in our calculations amounted to 250,120,500 units.

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