Profits increase 72% to $100.8m for nine months ended January 21

Lumber Depot continues to weather the COVID-19 pandemic well, posting healthy profits over the last three quarters.

Despite the challenges generally associated with trading during the COVID- 19 pandemic, Lumber Depot has continued to trade positively.

For the nine-month period commencing May 1, 2020 and ending January 31, 2021, the company reported a 10 per cent increase in revenues relative to the comparible period in 2019-2020.

Profits increased 72 per cent  to $100.8 million.

Improved tax status

The business benefitted from improved revenues as well as the improved tax status of the business arising from its listing on the Junior Market of the Jamaica Stock Exchange (JSE) last year.

As a consequence of the strong performance, shareholders equity for Lumber Depot Limited has increased 45 per cent for the year‐to-date and now stands at $279 million.

Lumber Depot recognises that the COVID-19 pandemic and the associated restrictions on movement and operating hours present challenges for the Jamaican economy.

Jeffrey Hall, chairman of Lumber Depot, advised that the strategy employed has been to consistently offer competitive prices on its products and maintain service standards while prioritising the safety of customers and staff.

Maintaining consistent inventory levels

During the period under review, a major area of focus for us was to  maintain consistent inventory levels in all of the key hardware supplies – including lumber, steel and cement products – regardless of the factors affecting production and transportation of these items.

“We have proactively developed relationships with key suppliers of construction inputs both in Jamaica and overseas and sought to buy strategically in order to contain the impact of rapidly increasing global commodity prices and transport costs,” Hall said in his quarterly report.

He reported that Lumber Depot has been generally successful in its operations, which has improved its standing with key customers.

According to Hall, “with our decision to raise equity capital through the JSE, we also benefit from a strong balance sheet that allows us to secure the commercial opportunities that are now available to us and to maintain resilient levels of inventory”.

Lumber Depot operates a full‐service hardware store in Papine, St Andrew that serves the needs of large and small-scale building contractors, as well as homeowners doing construction projects, renovations and repairs.

The Lumber Deport business has been in operation for over two decades and during this times has estabnlished a market leading position in the communities we directly serve and a strong reputation for excellent service and good value across the wider Corporate Area.