SOS projects 3Q slowdown, citing elections
Published:Wednesday | September 3, 2025 | 12:08 AM
Stationery & Office Supplies Limited is projecting a subdued third quarter, arising from a reluctance to spend during election season.
The General Elections are scheduled for today, September 3.
SOS identified a “clear contraction in spending”– citing election-related uncertainty. With companies pausing major purchases and individuals curbing discretionary spending, the firm anticipates a subdued economic climate in the near term.
“With Jamaicans mainly focused on [the election’s] outcome, it has created a slowing down of Jamaica’s economy,” the company stated in financials signed by Managing Director Allan McDaniel and Chief Administrative Officer Marjorie McDaniel.
SOS earns revenue from individual consumers, but its primary clients are businesses such as banks, outsourcing BPOs, and other firms. The board noted that many firms are bracing for sector-specific impacts.
Despite the headwinds, SOS continues to expand. Its new Seek bookmaking facility is 80 per cent complete and expected to be operational early in the third quarter. The company has also grown its Evolve furniture line, adding new products to meet shifting market needs. Inventory levels remained stable, closing the quarter at $351 million to support dealer demand across Jamaica and the Caribbean.
The office furniture and stationery supplier posted modest revenue growth of 3.5 per cent year-on-year, reaching $448 million for the June second-quarter. However, gross profit margins declined by two percentage points to 56 per cent, due in part to a 4.0 per cent devaluation of the Jamaican dollar and rising shipping costs. Operating expenses rose 11 per cent, driven largely by increased salaries, while pre-tax profit fell 51 per cent to $23.1 million.
For the first half of 2025, SOS reported profit of $107 million – a 32 per cent decline compared to the same period last year. Still, its asset base grew 10 per cent to $2.04 billion, and equity rose 12 per cent to $1.65 billion, underscoring the company’s financial resilience. Six-month revenue inched up by three per cent to $985 million.
Post-pandemic, SOS has continued to grow despite remote work trends reshaping the sector, the company having expanded regionally, diversified its offerings, and invested in infrastructure.
“Regardless, SOS continued to push forward, expanding its footprint throughout Jamaica and the Caribbean,” the company said.