Lumber Depot eyes new acquisitions
Despite results which were flat year on year, the management of Lumber Depot Limited is anticipating continued growth from new acquisitions, noting the positive impact of its 35 per cent stake in Atlantic Hardware and Plumbing Limited which was included in its latest report.
Lumber Depot Limited generated net profits of $86.25 million on revenues of $762.65 million for the six months ended October 31, 2024. This compares to $86. 73 million on $782.06 million in revenues for the similar period in 2023.
Chairman Jeffrey Hall Hall commented, “ The company was able to achieve these positive results despite the challenge of hurricane Beryl and its adverse impact on the construction sector.” In addition, he note, the construction sector experienced supply chain challenges for critical construction inputs and this also affected sales.”
Gross profit margin for the six months in 2024 increased marginally by 2 per cent over the prior year but faced a 2.5 per cent reduction in revenues and a 0.60 per cent in profits.
Hall outlined, “ As a result of our efficiency measures, we delivered strong profitability with retained earnings growing to $545.98 million compared to $453.02 million in the prior year, despite paying a dividend of $0.07 per share in October 2024.”
He said that Lumber Depot was positively cash-generative and earned cash from operations of over $79 million and now retains cash and investments in excess of $232 million.
The company strategy, he said, is to offer competitive prices on products and to maintain service standards and inventory availability. He added, “Our strategy for Lumber Depot also involves business expansion and acquisition opportunities. With the onboarding of our acquisition of a 35 per cent interest in Atlantic Hardware & Plumbing Limited we are participating at the shareholder level in the wholesaling and distribution of hardware, building materials, plumbing, electrical, tools, and supplies to hardware stores, contractors, and developers across Jamaica.”
Lumber Depot operates its hardware store in Papine for large and small scale building contractors, as well as homeowners doing construction projects, renovations and repairs. The company is over 20 years old.
Hall said, “We consider our location in the Papine to be an important part of our success.
Papine is a dynamic and growing university community that also serves as a main access point to the St. Andrew hills. Our location is immediately within the most trafficked part of the community.”
The company aimed, he said, to “ boldly seize the expansion and acquisition opportunities that we expect to become available to the stronger participants in the Jamaica construction and hardware sector as economic conditions improve.”
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