Durrant Pate/Contributor

Stationery & Office Supplies Limited (SOS) has delivered a solid combined nine-month performance with a strong third-quarter outturn, particularly in exports.

Third-quarter revenues are up 12 per cent to J$504.8 million, while the year-to-date (YTD) revenue outturn has amassed J$1.49 billion, representing a six per cent rise that places 2025 among the company’s strongest periods on record. Unaudited financials for the quarter ended September 30 show the business moved ahead in export orders, expanded its online sales activity and strengthened its asset position while navigating higher staffing costs and a year marked by significant internal transition.

SOS managing director Allan McDaniel highlights that the performance comes during a meaningful and emotional year stemming from the July 2 passing of its founder, David McDaniel.

On behalf of the leadership team, McDaniel remarked, “This quarter reminded us how much the company means to the people who built it and the customers who rely on us. Although there were challenges, we kept our focus on serving the market well and making thoughtful decisions day by day. We also celebrated the company’s 60th anniversary on July 26, which is a significant milestone for us. I am proud of how our team managed both the highs of our anniversary celebration and the difficulty of losing my father. We will continue to approach the months ahead with sound planning and consistent execution through the rest of the year.”

A solid Q3

The 12 per cent revenue increase in the third quarter was supported by increased export demand and the early traction of its newly launched online sales platform. Operating expenses rose 20 per cent to J$224.6 million, largely due to higher wages and the onboarding of specialised personnel across multiple departments. Gross profit improved marginally to 56 per cent, aided by larger-volume purchasing that lowered unit costs. Meanwhile, pre-tax profit for the quarter amounted to J$68 million, slightly below the J$70.1 million reported in 2024, owing to the rise in expenses. 

Earnings per share for the quarter held at J$0.03, unchanged from the previous year. Despite cost pressures, management recorded a stronger operating profit compared to the prior year and higher foreign exchange gains. Improved revenue quality and stable gross margins helped balance the upward shift in expenses and allowed the company to maintain profitability throughout the quarter. SOS ended the quarter with total assets of J$2.07 billion, up 6.5 per cent from J$1.94 billion in September 2024. The increase was led by higher inventories, growth in receivables and an expansion of the company’s property and equipment portfolio, which rose 15 per cent to J$986.3 million. 

Upward trajectory YTD

For the first nine months of 2025, SOS reached J$1.49 billion in revenue, up from J$1.41 billion in the same period of 2024. This YTD result places the company just three per cent behind its record year in 2023.

“It is a solid position for us, and it shows that our day-to-day work is holding up well. We have been deliberate in how we manage the business, and the outcome so far is a credit to the team,” McDaniel explained. Operating expenses for the period rose 11 per cent to J$651.5 million. Staffing adjustments and salary structure updates contributed to the increase. 

Gross profit percentage declined from 56.3 per cent to 54.2 per cent, a shift attributed to modest cost-of-goods increases absorbed by the company rather than passed on to customers. Pre-tax profit for the nine-month period totalled J$175.8 million compared with J$226.8 million in 2024. Earnings per share for the period closed at $0.07 compared with $0.10 a year earlier. Cash flow from operations remained strong at J$191.4 million. 

The company invested $92.3 million in new property, plant and equipment, consistent with ongoing upgrades to warehousing, logistics and office-furniture capabilities. SOS enters the final quarter of 2025 with stable demand across its core office-products business, growing traction in online sales and increasing export opportunities.