First two overseas shipments made since 2021

Stationery and Office Supplies Limited (SOS) has seen its net profit jumped by 26 per cent for the March quarter but revenues were down seven per cent during the period.

Profit before taxes for the period review went up by 26 per cent to $55.34 million versus $43.80 million earned in 2020. No taxes were incurred as such, net profit for the period totaled $55.34 million compared with $43.80 million for the March 2020 quarter.

Revenues were down seven per cent to $313.32 million coming from $336.90 million in March in 2020. The company’s management reported that, “SOS has had a strong start to 2021 which can be seen clearly in the below comparisons between the first quarter of 2021 and 2020. During the quarter, SOS was able to export its first two containers for the year, both destined for St Lucia”.

These exports together with the new product lines that SOS now carries, helped SOS to achieve its second highest pre-tax profit figure in its history.

New line of home office furniture

SOS management highlighted that its, “new lines of home office furniture and industrial racking continue to be well received within the market. SOS has also been able to add additional options to the home office furniture line, giving our customers additional choices and variety available for them to purchase from stock”.

In addition, the management pointed to “the significant demand from customers for our locally manufactured desk and counter mounted acrylic screens which are used for employees’ protection against the COVID-19 virus. These screens are custom made for our clients and has aided them in continuing to work within their existing office layout”.

Gross profit rose 3% during March quarter

Cost of sales for March 2021 totaled $143.71 million, down 16 per cent relative to the $171.69 million reported for the comparable period in 2020. As a result, gross profit rose by three per cent for the quarter amounted to $169.61 million relative to $165.21 million booked in March 2020.

Other income fell by 55 per cent to close the period at $1,986 versus $4,401 reported in the same period last year. Finance income during the review quarter rose 112 per cent to close at $247,707 versus $117,041 booked in the corresponding period last year.

Administrative and general expenses totaled $80.58 million, down from the $86.06 million documented in the prior comparable period. Selling and promotional expenses contracted by 10 per cent to close at $21.07 million (2020: $23.31 million).

SOS’s depreciation cost amounted to $8.25 million, a nine per cent decline relative to the $9.05 million recorded in 2020, while finance cost closed at $2.47 million (2020: $3.34 million).Loss on foreign exchange increased closing the period under review at $2.15 million (2020: $1.86 million).

As at March 31, 2021, total assets increased by 0.3 per cent to close at $941.25 million from $938.68 million 12 months earlier. The increase in total assets was primarily driven by an increase in ‘Bank and Cash’ and ‘Inventories’ which closed at $120.54 million (2020: $90.95 million) and $244.80 million (2020: $226.37 million), respectively.

This was tempered by ‘Trade and other receivables’ which contracted by 28 per cent to close at $124.16 million (2020: $172.39 million) for the period under review.