Durrant Pate/Contributor
Stationery Office and Supplies Limited (SOS) continued along a profitable trajectory achieving a monthly sales record of J$140 million in February 2022 and again beating this record in March with a high of J$173 million, a 25 per cent increase in comparison to the previous month.
Overall, SOS has earned new all-time record highs, namely, profit in a quarter, profit in a month, revenues in a quarter and revenues in a month. Regarded as the premier supplier of office furniture and equipment in Jamaica, this historic performance marks the highest ever earned in a single month in the company’s history.
This monumental financial milestone was achieved in the first quarter of 2022 and is a continuation of the company’s upward movement. For the first quarter of 2022, SOS experienced significant growth in all areas of the business as revenue totalled J$427.6 million, representing a growth of 36 per cent when compared to March 2021.
Increases across business lines
There was also an increase in revenues in almost every category including SEEK exercise books, which jumped from J$10.3 million to J$18.5 million; chair sales rose by 35 per cent; document destruction services, up 60 per cent while IMAGE & TORCH furniture lines, increased by 50 per cent. Gross profit saw a slight decrease of five per cent.
The business, also recorded a monumental increase in pre-tax profits from $57.5 million to $104.9 million, representing an overall increase of 83 per cent. Higher profitability levels have increased the earnings per share at the end of the 1st quarter of 2022 to J$0.42, an increase of J$0.20 compared to the end of the 1st Quarter of 2021.
SOS managing director Allan McDaniel attributed the positive financial performance to the systems put in place, which were centred on increasing revenues and profitability.
According to McDaniel, “This record-breaking performance surpassed our expectations. The phenomenal quarter we just experienced has been made possible because the entire team shares the company’s vision and buys into the mandate of giving value and exceptional service to every customer, regardless of size.”
He argues that the positive financial figures, “reflect this shared philosophy and we’re extremely grateful. Additionally, the overall increased profitability stemmed from SOS’ strategic pre-planning and foresight to have the requisite inventory to supply the market in order to mitigate any interruptions due to irregular global shipping schedules.”
High expectations for 2022
New chairman, Stephen Todd, who took over the reins in October 2021, trumpets that the company had high expectations coming into 2022 after a solid end to 2021.
Todd remarked, “the economy is on a path of recovery. Despite all the challenges of lockdowns and mandated rules that had impacted businesses across the island, many businesses are eagerly anticipating a return to ‘normal’ operations. Hopeful for a financial resurgence, many of these companies are redesigning office spaces which led to increased demand for our products.”
The general economic recovery of the business sector has been very positive with the economy set to rebound financially as new entities emerge and existing ones return to full operating capacity.
On this point, McDaniel commented, “these and other factors have propelled SOS forward into another record-breaking quarter.”
The New Year and new quarter is one for the record books. The pre-tax figure of J$104.9 million also includes the J$23 million profit earned from the sale of its Collins Green Avenue property. The proceeds from this will be utilised for future expansion projects.
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