Wed Sep 11 05:09:00 UTC 2024: ## Lumber Depot Posts Lower Profits in Q1 Despite Acquisition
**Kingston, Jamaica** – Lumber Depot, a leading provider of building materials in Jamaica, has reported a decline in net profits for the first quarter ending July 30, 2024. The company attributed the dip to a challenging business environment marked by elevated interest rates, increased operating costs, and disruptions to construction activity caused by Hurricane Beryl.
Profits fell to $45.2 million, a 13.9% decrease from the $52.6 million earned in the same period last year. Revenue also declined by 7% to $386.5 million.
Despite the challenging conditions, Lumber Depot Chairman Jeffrey Hall expressed confidence in the company’s long-term profitability and competitiveness. He highlighted the company’s recent acquisition of a 35% stake in Atlantic Hardware & Plumbing Limited for $210 million, a move he believes will contribute to future profitability.
“We are satisfied that these increases, though significant, support our development of a secure platform for long-term growth,” Hall stated in an interim report to shareholders.
The company is actively pursuing further expansion and acquisitions, with a focus on strategic growth and maximizing value for investors.
The local construction industry has been experiencing a slowdown, with the Planning Institute of Jamaica (PIOJ) reporting a 2.4% decline in building activity during the April-June quarter.
Lumber Depot, established over two decades ago, operates in the bustling university community of Papine and continues to navigate these challenging market conditions.
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