A six percent rise in revenues in the first nine months of 2025 melted down to a modest 1.3 percent for Stationery & Office Supplies (SOS) for the year, to $1,866 million, over $1.843 billion recorded in 2024, following the negative impact on sales caused by the impact of Hurricane Melissa in the last quarter.
While the top line held up well, supported by a 50 percent surge in export sales across the Caribbean region and strong growth from the EVOLVE furniture line, the bottom line came under considerable pressure, partially affected by the impact from the hurricane and lower margins from exports.
Stationary & Office Supplies – Montego Bay office.
Gross profit for the year came in at $953 million, down 5.5 percent from $1.01 billion in the prior year. The gross profit margin narrowed from 54.7 percent to 51.1 percent, reflecting higher shipping and input costs that the company chose to absorb, as well as the lower-margin profile of the growing export business. Cost of sales rose to $913 million from $835 million, a 9.4 percent increase that meaningfully outpaced revenue growth.
Administrative and general expenses climbed 7.2 percent to $612 million, driven largely by a 9.5 percent increase in staff costs as the workforce expanded from 162 to 170 employees and management remuneration that rose to $142 million. Selling and promotional expenses were essentially flat at $154 million, while depreciation and amortisation held steady at $45 million. Total expenses for the year reached $828 million compared to $785 million in 2024, a 5.5 percent increase.
Operating profit fell sharply to $137 million from $228 million in 2024, a decline of approximately 40 percent. Net finance income of $11 million and foreign exchange gains of $10 million, resulted in pre-tax profit for the year of $160 million, down 35 percent from $247 million in the prior year. The effective tax rate was approximately 17.4 percent, after accounting for a 50 percent tax remission as a Junior Market listed company. Net profit after tax amounts to $133 million, well below $223 million in 2024, a fall of 40 percent.
Earnings per share for the full year was 6 cents, down from 10 cents in 2024. The company paid dividends of $45 million during the year, representing 2 cents per share, the first dividend distribution since 2023.
Fourth Quarter 2025
The fourth quarter was severely disrupted by Hurricane Melissa, with Revenues declining by 14 percent to $377 million, from $437 million in the same period of 2024. Gross profit collapsed by around 50 percent to roughly $105 million as storm-related inventory losses at the Montego Bay warehouse and reduced trading activity weighed heavily on results. Expenses for the quarter declined 11 percent to approximately $183 million as the company curtailed discretionary spending. The net result was a pre-tax loss of approximately $6 million for the quarter, compared to a pre-tax profit of $15 million in Q4 2024, a swing of $21 million. The quarterly EPS was aa loss of 0.2 cents.
Segment Performance
The Furniture segment remained the powerhouse of the business, generating revenues of $1.35 billion in 2025, up 9.6 percent from $1.23 billion in 2024, with a gross profit of $760 million and a segment gross margin of 56.4 percent. The Book segment, representing the SEEK brand, saw revenues decline sharply to $76 million from $106 million, with gross profit falling to just $6 million from $27 million, reflecting both hurricane disruption and the pre-commissioning stage of the new factory. Stationery and other supplies posted revenues of $441 million, down 13 percent from $506 million, generating a gross profit of $187 million at a margin of 42.4 percent.
The company had an official opening for the Seek factory a week ago, with reports that it elicited some fresh orders and increased interest in the products that are manufactured. As the leading player in the office and stationery business smaller players who may want to exit the business will most likely look to them to be acquired. This is an ever present possibility, so investors should not be surprised if there are such developments in the future that could push revenues and profit.
Balance Sheet
urrent assets at year end stood at $1.06 billion, with current liabilities of only $358 million, with a net current asset of $701 million, a modest improvement from $687 million in 2024. Cash and equivalents rose 15 percent to $382 million from $332 million. Inventories grew 4.5 percent to $416 million. Shareholders‘ equity increased to $1.64 billion from $1.55 billion, with a net asset value per share of 73 cents. Long-term borrowings, totalled $17 million, down from $27 million.
The company generated gross operating cash of $201 million, after favourable working capital movements and tax and interest payments, net operating cash flow was $215 million, ahead of the $187 million generated in 2024. Capital expenditure consumed $114 million, primarily on the SEEK factory build-out, motor vehicles and computer equipment. Financing outflows of $69 million included the dividend payment, lease repayments and loan servicing. The net increase in cash for the year was $50 million.
ICInsider.com projects earnings per share for 2026 at 15 cents at a PE ratio of 12.3 times earnings at $1.85 the stock last traded at on Thursday. This compares to the Junior Market average of 15.6 currently. At the close of trading on Thursday supply of the stock for sale has dried up with only 7 offers of 149,000 share for sale. Watch this stock that could deliver a 50 percent gain or more for the year.