SOS reports 47% increase in year end net profits

Date: March 02, 2020

Stationery & Office Supplies Ltd. (SOS), for the year ended December 31, 2019, reported year end revenue of $1.22 billion relative to $1.06 billion in 2018, a 14% increase, while for the fourth quarter revenues moved from $262.92 million in 2018 to $284.77 million in 2019.

The company’s cost of sales totaled $635.37 million up 13% relative to the $559.85 million reported in 2018. As a result gross profit grew by 15% amounting to $582.62 million relative to the $504.51 million booked in 2018, while for the fourth quarter gross profit moved from $98.39 million in 2018 to $116.44 million in 2019.

Administrative expenses totaled $306.18 million up 4% compared to the $294.32 million booked in 2018, while selling and promotion expenses grew by 5% closing the period at $93.21 million relative to the $88.63 million reported the prior year.

The company’s depreciation cost amounted to $26.18 million an increase of 8% relative to the $24.29 million incurred in 2018, while finance cost increase by 10% to close at $15.27 million (2018: $13.93 million).

Profit before taxes grew by 61% amounting to $136.70 million relative to the $84.98 million earned in 2018. While, for the quarter, profit before tax closed at $22.69 million versus a loss before tax of $6.65 million reported in the prior comparable quarter.

After tax charge of $ 2.13 million (2018 tax credit: $6.69), net profit for the year totaled $134.57 million an increase of 47% relative to the $91.67 million reported in 2018. Net Profit for the fourth quarter totalled $20.56 million (2018: $97,000).

Earnings per share for the year amounted to $0.54 (2018: $0.37), while EPS for the quarter totaled $0.08 (2018: $0.0004). The number of shares used in our calculations amounted to 250,120,500 units.  SOS’s stock last traded on February 28, 2020 at $8.70.

Balance Sheet at a glance:

Total Assets increased by 6% or $53.71 million to close at $907.04 million as at December 31, 2019 from $853.34 million the year prior. The movement was due to a 16% and 25% increase in ‘Inventories’ and ‘Property, Plant & Equipment’ which closed at $249.05 million (2018: $215.16 million) and $400.61 million (2018: $389.50 million) respectively. ‘Bank and Cash’ amounted to $62.54 million (2018: $52.63 million).

Equity attributable to stockholders of the company as at December 31, 2019 stood at $596.65 million (2018: $494.60 million) resulting in book value per share of $2.39 (2018: $1.98).

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