Stationery and Office Supplies (SOS) says its SEEK branded books recorded its highest-ever monthly revenue in August during the third quarter ending September 2023.
Moreover, SEEK has already exceeded its total revenue for the entire year of 2022, SOS said.
Allan McDaniel, the SOS’ Managing Director, explained that by strategically focusing on the back-to-school period, the SEEK manufacturing division implemented a comprehensive plan to improve accessibility.
“This achievement not only marks a milestone for the first nine months of the year but also underscores the success of the division’s strategy in capitalising on key sales periods,” McDaniel said.
Year-on-year, revenues for the company increased from $473.1 million to $487.9 million, while pre-tax profit grew from $87.2 million to $107.9 million. Revenues from SEEK, one of the best-performing areas, climbed to $37.5 million, up from $27 million in the same period last year.
Commenting on the quarter’s overall performance, McDaniel said: “Even with a marginal increase in revenues, the combination of an increase in the gross profit percentage and only a slight uptick in expenses demonstrates our continuing improvement in earnings.SOS was able to continue to grow all aspects of the business, and this is exactly what we’re aiming for.”
The gross profit margin improved to 54.1 per cent from 51.4 per cent in the same period last year, while expenses rose by 9 per cent, increasing $172.6 million.
McDaniel shared that the modest rise in expenses coupled with an improvement in gross profit margin represents SOS’ investment in future growth and expansion, which have been yielding results.
One such investment is the EVOLVE furniture line, which saw an increase in average monthly sales to just under $10 million in the third quarter.
Launched in 2022, the product line expanded this year to include a variety of new items like meeting tables, podiums, reception furniture, and credenzas, along with a broader selection of options for the existing range of chairs.
Another investment that bore fruit during the quarter was the completion of the construction of its new warehouse at Beechwood Avenue, which created an additional 5,000 sq. feet of storage space.
Meanwhile, the warehouse expansion at the SOS’ Montego Bay branch is now 90 per cent complete. It is set to complement the company’s expansion of its delivery fleet, which will strengthen its market share in the parish and surrounding areas. This is even as revenues at the branch rose by 11 per cent this quarter.
McDaniel shared that SOS’s strategic growth has not only bolstered its market presence but has significantly improved its operational efficiency.
“As SOS expands, our increased purchasing power allows us to buy in bulk, resulting in better product pricing by sourcing directly. Additionally, the growth in container shipments from the Far East secures us lower shipping rates. While we share these cost savings with our customers through discounts, SOS also continues to benefit from the financial advantages of these reduced expenses,” McDaniel said.