Durrant Pate/Contributor

Stationery and Office Supplies Limited (SOS) has announced its latest expansion strategy, including further acquisitions and market expansion at its Annual General Meeting (AGM) on Wednesday. 

With revenues for the 2023 fiscal year reaching a record $1.9 billion, representing an 11% increase over the previous year, SOS detailed plans to build on this momentum and further penetrate the Caribbean market.

Chairman, Stephen Todd affirmed that the company remains positive that its best performance is in the future. 

He told the AGM, which was held virtually, “We have made significant strides in enhancing our shareholders’ value, and with the collective efforts of our team, coupled with the strong foundation we have laid, I am certain that we are all well positioned to continue our streak of positive performance.” 

Speaking to the company’s $50 million investment in three advanced machines set to modernise the SEEK factory output, Managing Director Allan McDaniel explained, “The new machinery that we’ve brought in is going to focus specifically on the back-to-school market. Currently, we have a staff of about 35 persons working and operating for roughly the $100 million worth of sales that we achieved in 2023. The expectation is that the new machinery could potentially triple our output and therefore triple our revenues.”

The new machines include a ruling machine that will increase ruling capability fivefold and two book-making units that will staple, fold, cut, and bind exercise books in one pass, tripling the daily output. McDaniel said the equipment is already on the island and will soon be commissioned.

Expansion to meet demand

In response to rising product demand, SOS invested over $120 million in expansion efforts in 2023. With demand still high, this year the company purchased two new properties and will commence construction of a new warehouse on one property in 2025. 

“With our plans for the SEEK expansion in 2024, we require an additional 3,000 to 4,000 square feet just for that line, plus more space to accommodate the growth of our Evolve product line,” McDaniel said. The Evolve furniture line has seen an expansion, achieving a 30% revenue increase in 2023 and becoming a cornerstone of SOS’s offerings. 

SOS aims to increase sales by an additional 5-10% in 2024. Deputy Managing Director, Kelli Muschett commented, “We are extremely proud of the Evolve line. Its continued growth and evolution in Jamaica and partnerships with our Caribbean partners will further enhance our sales and market share within the industry.”

2023 exceptional fiscal year

Overall, SOS has branded 2023 as an exceptional fiscal year, which will fuel growth in 2024 and beyond. The year’s main growth drivers were highlighted as the SEEK Factory, which saw its highest revenues of $97 million; the Evolve furniture line, and regional partnerships in St Lucia, the Cayman Islands, and Trinidad.

Providing a financial overview, Financial Controller Kareem Jones bragged that the total revenue reached was $1.9 billion, the highest in the company’s history. Jones attributed this success to improved operational efficiencies and strategic pricing, despite a 21% rise in administrative costs driven by inflation. Operating profit rose by 23%, from $263 million in 2022 to $324 million in 2023 with net income of $277 million, surpassing last year’s figure by $21.8 million. 

Total assets grew by 25% to $1.7 billion, driven by continued capital investments with over $126 million in cash and cash equivalents. “As we look ahead to Fiscal Year 2024, we remain cautiously optimistic. While we anticipate challenges in this volatile and inflationary environment, we are prepared to navigate these obstacles and make decisions that add value for our stakeholders,” Jones added.