6 days ago
5
Lumber Depot Ltd which operates a hardware store in Papine, St Andrew, made higher profit for its second quarter which signalled a rebound from earlier disruptions from Hurricane Beryl.
The outlook remains cautious based on the wider challenges in the construction sector.
“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, the construction sector experienced supply chain challenges for critical construction inputs and this also affected our sales,” stated chairman Jeffrey Hall in the preface to the financials.
The second-quarter profit increased 20 per cent to $41 million, driven primarily by improved operational efficiency and higher revenue. The company’s revenue climbed marginally to $376 million, up from $365 million in the prior year. However, performance over the broader six months to October remained flat due to ebbing sales and challenges within the construction sector.
The nation’s construction sector declined by 2.8 per cent in the September quarter due to reductions in expenditure and work stoppage due to the storm’s passage.
Lumber Depot’s revenue for the period May to October this year also reflects a slight decline of three percent from the similar period in 2023, registering $762 million from $782 million a year earlier.
The company blamed supply chain disruptions for critical building materials, exacerbated by the impact of Hurricane Beryl.
“We are pleased that despite the current challenges, Lumber Depot continues to trade positively, generate cash and deliver strong returns to shareholders,” Hall stated about the company worth $716 million in capital to October.
Lumber Depot operates a hardware store in Papine, stocking an extensive inventory of cement, steel, lumber, plumbing, electrical supplies and paints, strategically serving contractors and homeowners.
The company was listed on the Junior Market of the Jamaica Stock Exchange in 2010. Then in 2019 after satisfying its ten years on the market, split from its affiliated Blue Power Group and relisted in 2019.
English (US) ·