SEEK sales wraps SOS Q3 results
A 39 per cent increase in revenues from its SEEK brand helped to further push Stationery and Office Supplies Limited (SOS) to record earnings during the third quarter period ended September.
For the reporting quarter revenues from the SEEK brand, which the company said usually comes in as one of their best performing areas, moved from $27.1 million to $37.5 million — $10.5 million or 39 per cent above the same period last year. In August 2023, SEEK recorded its highest-ever monthly revenue at $17 million. As a result, this sees the brand for first nine months of this year already surpassing total revenue contributions of 2022.
Allan McDaniel, managing director of SOS, said that by strategically focusing on the back-to-school period, the SEEK manufacturing division implemented a comprehensive plan to improve accessibility. The targeted approach, he said, was what consequently led to the surge in revenues, culminating in a historic achievement for the company.
“This achievement not only marks a milestone for the first nine months of the year but also underscores the success of the division’s strategy in capitalising on key sales periods,” McDaniel said.
SOS, which has been busy building out its portfolio following its addition of new lines and the forging of strategic partnerships across the region, said that even after marginal revenue growth, “the third quarter of 2023 was again another fantastic three months in the ongoing banner year” for its business.
Total revenues for the quarter grew to $487.9 million with profit of $95.2 million. For the nine-month period, total revenues, up some 16 per cent, also climbed to $1.5 billion backed by a strong net profit of $294.3 million which was $41.7 million more than that of the prior year period.
The company, in labelling its nine-month revenue as the highest to date, said it was in line with the historically high results it continues to enjoy, especially now as it moves closer to year end and what is likely to be the best year in its 58-year history.
During the quarter revenue performance driven by strong segment out-turns also saw increases across the other areas of the business such as its document destruction services which went up 25 per cent; warehouse and equipment sales, up 40 per cent; BOSS chairs, up 27 per cent and sales from its Montego Bay branch, up 11 per cent.
“The increases seen above are directly related to SOS’s commitment towards growing the business. This, as we continue to increase our level of inventory to match the growing demand for our products and our commitment to service after acquiring an additional three delivery vehicles. With the above increases SOS has had continuous, steady growth throughout 2023 achieving all-time highs in the history of the company,” the directors said in a recent report to shareholders.
At the end of the third quarter SOS’ total assets increased by 55 per cent to $1.7 billion.
“This increase in total assets was due to a 30 per cent increase in inventory which moved from $280.5 million to $356 million as bank and cash rose by 222 per cent from $99.3 million to $320.8 million while receivables and prepayments rose by 46 per cent from $244.6 million to $357.4 million,” the report further noted.
With the company’s latest initiatives already beginning to bear fruit, the completion of construction activities at its new Beechwood Avenue warehouse, which added another 5,000 square feet of storage space along with the 90 per cent completion of its MoBay warehouse and the expansion of its delivery fleet, the company believes will all further help to positively drive its business.
“SOS’s strategic growth has not only bolstered its market presence but has also significantly improved its operational efficiency,” McDaniel said.