China boosts optimism for SOS, company absorbs tariff charges

 

 


Stationary and Office Supplies Limited (SOS) for the first quarter ended March 31, 2025,  achieved what it describes as the highest ever revenues ($537.5M) in any quarter in its 60-year history.

However profit fell to $ 73.5 million down from $95 million in the prior year.  A decline in gross profit was attributed to the continued depreciation of the Jamaican dollar and SOS’s strategic decision to absorb cost increases including a rise in the cost of shipping and changes in tariffs and duties from certain regions without raising prices.

In the quarter a SOS team left the island to go to what was described as the largest office furniture show in China,  meeting and negotiating with existing factories that SOS is partnered with.

Management says that the company also continues to prioritize growth in regional markets. Trinidad remains the company's most successful Caribbean market, supported by its local distribution partner, The Office Authority.

They indicate the company’s goal is to  surpass the J$2 billion revenue milestone in 2025.

 The Evolve furniture line grew by a  40 per cent in 2024 compared to the previous year.

Pre-tax profit pre-tax profit declined by 23.5 per cent, driven by reduced gross margins and increased operating costs.

SOS reported an 11 per cent increase in total assets, from J$1.8 billion to J$2 billion with  improvements including a seven per cent  increase in property, plant, and equipment (from J$854 million to J$934 million) and a 68 per cent increase in cash holdings (from J$282 million to J$473 million.

Receivables fell by  14 per cent due to a focus on collecting outstanding debts.

Earnings per share  for the quarter was J$0.03, down J$0.01 from the same period in 2024.

 

Caribbean Money Daily

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