HIGHER sales, stronger margins, and tighter control of operating expenses helped Stationery & Office Supplies Limited (SOS) to more than triple its net profit in the second quarter of 2026 as the company continued to strengthen its financial performance.

For the three months ended June 30, 2026, the company’s net profit rose to $62.8 million, up from $19.8 million in the corresponding period last year, representing an increase of 217 per cent. The sharp improvement comes against the backdrop of a 5 per cent growth in revenue which climbed to $469 million from $448 million.

Gross profit after increasing some nine per cent amounted to $270 million as margins improved 57.6 per cent when compared to the same period last year. Similarly, operating expenses also fell by approximately nine per cent to $211 million from $231 million.

“The combination of increased revenue, improved margins, and lower operating costs drove pre-tax profit to $71.7 million, compared with $23 million in the second quarter of 2025, an increase of 210 per cent,” the company’s directors said.

“The results point to improved operational efficiency and stronger profitability, with SOS generating significantly more profit from a relatively modest increase in sales,” they further said in a quarterly report to shareholders.

For the six months ended June 30, 2026, the company also recorded stronger profitability despite modest revenue growth. At the half-year mark, total revenue increased 2.5 per cent to approximately $1 billion, up from $985.2 million for the corresponding period in 2025. This, as profit increased to $141.7 million from $93.4 million, representing a 51.6 per cent improvement.

The company’s operating expenses remaining largely unchanged, rose marginally to $428.2 million from $427 million.

The directors said the first-half results reflected stronger gross margins, continued revenue growth, and disciplined control of expenses.

“Sustaining these efficiencies while continuing to expand revenue will position the organisation for continued growth and profitability during the remainder of the financial year,” they noted.

The stronger performance, also reflecting in SOS’s balance sheet, saw total assets for the stationery and office supplies distributor increasing nine per cent year-on-year to total $2.22 billion.

As the more than six-decade-old stationery and office supplies distributor positions itself for further growth, management said it will continue to pursue opportunities outside Jamaica while maintaining efficiency across the business.

Managing director Allan McDaniel said the company has spent the past year expanding its regional reach, including increasing its shipments of furniture and stationery to Trinidad and Tobago, St Lucia, and Barbados.

“The results build on a year in which we pushed to diversify revenue beyond the domestic market, including expanding our export of furniture and stationery lines to more countries as part of a broader regional growth strategy,” he noted.

McDaniel said exports still account for a relatively small portion of the company’s overall revenue but are showing positive signs of growth, which management intends to build on this year.

“The priority for the rest of the year is holding our margin level while we keep building out those export lines,” he stated.