However, the company was able to maintain its gross margins

Durrant Pate/Contributor

Lumber Depot has seen a fall-off in revenues and profits during the July quarter arising from increased operating costs and the disruption to construction activity arising from Hurricane Beryl.

Lumber Depot generated net profits of J$45.23 million on revenues of J$386.50 million for the quarter under review, resulting in a 7.40% reduction in revenues and a 13.90% contraction in profits. However, the publicly traded company was able to maintain its gross margins.

Despite the challenging environment, the business remained solidly profitable and highly competitive. Lumber Depot continues to trade positively, generate cash and delivering strong returns to shareholders and, importantly, to maintain excellent customer endorsements. 

The strategy, according to company Chairman Jeffrey Hall, “is to consistently offer competitive prices on our products and to maintain our service standards and inventory availability”.

He added: “In line with this approach, we are pleased to have been able to achieve our profit result despite market-based overall cost increases associated with insurance, security and staff retention. We are satisfied that these increases, though significant, support our development of a secure platform for long-term growth.”

Business expansion and acquisition 

The strategy for Lumber Depot also involves business expansion and acquisition opportunities. With the onboarding of its acquisition of a 35% interest in Atlantic Hardware & Plumbing Limited, Lumber Depot is participating at the shareholder level in the wholesaling and distribution of hardware, building materials, plumbing, electrical, tools, and supplies to hardware stores, contractors, and developers across Jamaica. 

The management expects this enterprise to contribute to our overall profitability in the years ahead. Lumber Depot operates a full-service hardware store in Papine that serves the needs of large and small-scale building contractors, as well as homeowners doing construction projects, renovations and repairs. 

The business has been in operation for over 20 years and during this time has established a market-leading position in the communities it directly serves and a strong reputation for excellent service and good value across the wider corporate area.