SOS annual sales rise despite hurricane inventory write-downs

Stationery and Office Supplies Limited (SOS) held its ground in 2025, recording its second-highest annual revenue despite losing its entire Montego Bay inventory to Hurricane Melissa – a resilience the company credits to surging export sales and a growing furniture line.

SOS posted revenues of $1.87 billion for the year ended December 2025, edging out the $1.84 billion achieved in 2024. The gain was driven by a 50 per cent jump in export sales and a 15 per cent rise in its Evolve furniture line, which grew from $140 million to $160 million. The report signed by Managing Director Allan McDaniel and Chief Administrative Officer Marjorie McDaniel called the export performance “impressive”.

The headline sales, however, masked a more difficult year beneath the surface. Pre-tax profit fell 35 per cent to $160 million from $246 million in 2024, squeezed by lower gross margins and the direct cost of the storm. The gross profit margin slipped from 55 per cent to 51 per cent as shipping costs rose and management chose not to pass those increases on to customers.

“SOS lost its entire stock in the warehouse at its location in Montego Bay, along with the destruction that was seen throughout the parish and surrounding areas,” the management report stated. “The south coast of the island, from Mandeville continuing westwards, was also greatly affected during this time.”

The financials included $5.6 million in inventory write-downs. The hurricane’s impact was most visible in the fourth quarter, when revenue fell 14 per cent to $377 million from $437 million in the same period of 2024. Gross profit was halved – down 50 per cent to $105 million – and the company swung to a pre-tax loss of $6 million for the quarter, compared with a $15-million profit a year earlier.

Despite those headwinds, management said its decision to build inventory through the year proved critical. “For the year, inventory rose by 4.5 per cent, allowing SOS to supply projects and orders from stock, rather than having customers wait on products to be ordered from overseas.”

On the manufacturing side, the company completed the build-out of a new factory for its Seek brand of exercise books in the latter part of 2025. “After testing and training on the new machinery, we have high expectations for the future of Seek,” the report stated.

SOS also took further steps towards energy independence during the year, adding its first electric delivery van – capable of 350 kilometres on a full charge – to a fleet that already runs on a 75-kilowatt solar system with electric forklifts and pallet jacks.

On the balance sheet, total assets rose six per cent to $2.1 billion; with cash up 15 per cent; inventory up five per cent; and property, plant and equipment up eight per cent. Earnings per share fell to $0.06 from $0.10 in 2024.

SOS, which has been listed on the Junior Market of the Jamaica Stock Exchange since 2017, sells office furniture, fixtures, stationery and other office supplies, and manufactures books through its Seek brand. Outlook Limited remains the dominant shareholder with a 79 per cent stake.

luke.douglas@gleanerjm.com