Lumber depot earnings flat
Lumber Depot executives in attendance at the company's listing ceremony with the JSE in December 2019 (Photo: Karl Mclarty)

Despite losing 17 days during its second quarter (August — October) from the lockdown measures to combat the rising COVID-19 cases, Lumber Depot Limited's (LDL) revenue and net profit remained flat when compared to the same period last year.

LDL's revenue increased by $1.51 million to $339.86 million. However, due to a 12 per cent rise in administrative expenses and slightly higher credit loss provisions, the company's operating profit fell by 23 per cent to $28.01 million. LDL is a full-service hardware store that serves small and medium-scale contractors and other customers in the Papine area and other parts of the island.

With $8.57 million in other income and slightly higher net financial costs of $1.16 million, LDL's net profit declined by two per cent to $35.42 million. This resulted in earnings per share remaining flat at $0.05. However, the company's six months revenue remains up by nine per cent at $759.94 million while net profit increased by 62 per cent to $107.20 million.

In his report to shareholders, Chairman Jeffrey Hall stated, “Lumber Depot remains very optimistic about the prospects for the Jamaican economy and for the construction sector. That said, curfews, travel restrictions and new workplace rules have presented risks to our supply chain, have strained consumer and business confidence, and have resulted in increased volatility in commodity prices, exchange rates and some borrowing costs in the short term.”

Hall attributed the company's successful first half year to management's initiatives to manage supply chain issues and secure adequate stock levels to limit price increases wherever possible.

— David Rose

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