March 17, 2025

Lumber Depot Limited (LUMBER)

Unaudited financials for the nine months ended January 31, 2025:

Lumber Depot Limited (LUMBER) reported a 2% decrease in revenue, totaling $1.13 billion for the nine months ended January 31, 2025, compared to $1.16 billion in the corresponding period last year. Revenue for the third quarter decreased by 1%, closing at $372.29 million compared to $376.85 million for the comparable quarter of 2024.

Cost of sales amounted to $880.62 million (2024: $911.41 million), representing a decrease of 3% year over year. Consequently, gross profit increased by 3% to $254.33 million compared to $247.50 million for the nine months ended January 31, 2024. The company booked a gross profit of $78.71 million for the third quarter versus $82.20 million reported for the similar quarter of 2024.

Impairment gains on trade receivables increased by 111%, closing at $77,362 (2024: impairment losses of $719,782), while administrative and other expenses increased by 18%, from $129.46 million in 2024 to $152.99 million in the period under review. As a result, profit from operations for the nine months ended January 31, 2025, amounted to $101.40 million, a 14% decrease relative to $117.30 million reported in 2024.

Other income for the nine months ended January 31, 2025, amounted to $5.48 million, a 37% decrease relative to $8.67 million reported in 2024. Other income for the third quarter amounted to $1.71 million (2024: $2.81 million). Profit before net finance costs and taxation totaled $119.07 million, a 5% decrease from the corresponding period last year (2024: $125.97 million).

Net financial cost for the nine months ended January 31, 2025, amounted to $2.11 million, a 1117% increase relative to $173,254 reported in 2024. Net financial cost for the third quarter amounted to $708,399 (2024: $232,409).

Profit before taxation for the nine months ended January 31, 2025, decreased by 4%, reaching $121.18 million (2024: $126.15 million). Profit before taxation for the third quarter amounted to $34.93 million (2024: $39.41 million).

Profit attributable to members, being total comprehensive income for the period, amounted to $118.85 million for the nine months, a 6% decrease from the $126.15 million reported in 2024. For the third quarter, profit attributable to members, being total comprehensive income for the period, was $32.60 million (2024: $39.41 million).

Consequently, earnings per share for the nine months amounted to $0.17 (2024: EPS: $0.18), while earnings per share for the quarter totaled $0.05 (2024: EPS: $0.06). The twelve-month trailing EPS was $0.20, and the number of shares used in these calculations was 706,237,500.

Notably, LUMBER’s stock price closed the trading period on March 14, 2025, at a price of $2.95 with a corresponding P/E ratio of 15.11x.

Balance Sheet Highlights
The company’s assets totaled $941.47 million (2024: $767.15 million). This increase was attributable to investment in associate, which amounted to $292.19 million for the period.

Shareholders’ equity was $748.64 million (2024: $662.49 million), representing a book value per share of $1.06 (2024: $0.94).

Disclaimer:

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.