Durrant Pate/Contributor

Stationery & Office Supplies Limited (SOS) ended 2024 on a high note, delivering one of its strongest financial performances to date, surpassing $1 billion in gross profit for the first time.

SOS, whose main line of business is the provision of office supplies chalked out an impressive 8% increase in fourth-quarter revenue, reaching a total of $437 million, while gross profit surged by 41% to $215 million. For the full year, SOS achieved $1.84 billion in revenue, marking its second-highest total in company history. 

Profit margins rose to 49.25%, up from 45.4% in 2023, demonstrating the company’s ability to enhance operational efficiency. These gains are the result of a comprehensive approach comprising careful pricing strategies, enhanced efficiency, and disciplined cost management, thus allowing SOS to deliver robust results in a competitive market.

These achievements set SOS up to maintain its strong position in the office supplies market and continue meeting customer demand.

Targeted efforts driving sustainable success

Capital expenditure for 2024 was primarily allocated to infrastructure, automation, and renewable energy initiatives. These investments enhance the company’s efficiency while reinforcing its commitment to sustainability. 

This disciplined approach ensures that SOS remains competitive, enabling it to adapt to new challenges and take advantage of opportunities that arise, all while maintaining a strong and stable financial position.

Commenting on the positive financial performance, Financial Controller Kareem Jones said, “The outcomes we’ve achieved demonstrate that our strategic decisions in pricing, investment, and operational efficiency are paying off, showcasing our ability to make informed decisions to support business development. We’ve built a business model that is not just profitable but also resilient, allowing us to scale sustainably.”

New investments and capacity expansion

A major highlight for SOS in 2024 is the ongoing expansion of its SEEK factory, which is set to increase production capacity significantly. The introduction of advanced machinery and an expanded production space will equip the facility to meet rising market demand without compromising the high standards of quality that customers have come to expect. 

These upgrades are laying the groundwork for future growth and will enable SOS to scale its operations to support both current and future customer needs. Alongside these infrastructural upgrades, SOS has strengthened its workforce, adding key supervisory and support roles to improve overall operations and efficiency. 

Investments in solar-powered equipment have led to a reduction in energy costs, aligning with the company’s sustainability goals. These strategic initiatives ensure that SOS is not only prepared for increased demand but also operating in an environmentally responsible and cost-effective manner, keeping it at the forefront of industry innovation.

Robust export growth 

The company experienced robust growth in export sales, nearly doubling its figures from the previous year as a result of heightened regional demand and expanding market reach. A key driver of success was the strong performance of the EVOLVE furniture line, with revenue growing from $100 million to $140 million, underscoring the demand for high-quality, locally produced office furniture and solidifying SOS’s position as a leading supplier.

With a solid foundation in place, SOS is poised for continued success, focusing on new product lines, regional expansion, and maximizing production capacity. Operational efficiency and financial stability will drive growth in both domestic and international markets. 

Managing Director, Allan McDaniel expressed confidence in the company’s direction, stating, “What we’ve accomplished in 2024 is not just about numbers, it’s about setting a new standard for excellence in our industry. We are focused on innovation, expanding our reach, and ensuring that every investment we make drives long-term value for our customers and stakeholders.”