SOS Q2 Profit More Than Triples, While CHL’s Costs Too Hot to Handle

• Stationery & Office Supplies Limited (SOS) and Cargo Handlers Limited (CHL) faced different earnings outcomes, for the quarter ended June 30, 2026 (Q2 2026). SOS lifted second-quarter net profit 216.9% to $62.87Mn, while CHL’s Q3 earnings were relatively flat as its revenue growth was thwarted by higher costs.
• SOS's Q2 revenue rose 4.8% to $469.44Mn while cost of sales was virtually unchanged at $199.69Mn. This lifted gross profit 8.5% to $269.75Mn and the gross margin to 57.5% from 55.5%. Administrative and general expenses fell 10.6% to $157.83Mn, while selling and promotional costs declined 10.2% to $38.63Mn – absorbing a 27.8% increase in depreciation and amortisation. Consequently, operating profit jumped to $62.01Mn from $17.92Mn.
• This strong Q2 carried SOS’ first 6 months of its financial year. H1 Profits increased 51.7% to $141.67Mn. Of the $48.27Mn increase, 89.0% came from Q2 alone.
• Meanwhile, CHL’s Q3 revenue rose 20.0% to $140.76Mn, which management attributed to higher cargo volumes through the Port of Montego Bay. This includes the delivery of pipes for the National Water Commission's Western Water Resilience Improvement project, increased cement tonnage and a limited containerised transhipment service.
• However, CHL’s gains were largely consumed by cost. Other operating expenses rose 32.6% to $85.22Mn owing to elevated volume handled, higher labour costs, and a shift in cargo mix, and administrative expenses rose 16.6% to $10.97Mn. The higher costs held operating profit to a 2.1% increase at $44.19Mn. An 82.9% fall in exchange gains to $0.64Mn also negated the combined effects of a $0.79Mn increase in interest income, a $1.5Mn increase in Share of profits of associates, and near elimination of finance costs ($0.69Mn: -97.3%).
• Beyond a flat Q3, CHL’s 9-month was softer. Revenue slipped 1.0% to $353.89Mn, other operating expenses climbed 14.1% to $217.48Mn, while administrative expenses rose 8.5% to $38.73Mn. This cut operating profit by 26.4% to $93.99Mn, while a $0.47Mn exchange loss and a 10.4% decline in share of profits of associates also weighed on earnings.
• Looking ahead, SOS wants to sustain current efficiencies while continuing to grow revenue for the remainder of the financial year. Meanwhile, CHL points to large-scale commercial projects and extensive luxury accommodation buildouts across Western Jamaica as continuing to propel cargo through the Port of Montego Bay. However, CHL’s key risk is that its earnings remain heavily tied to cargo flows through a single port. Any slowdown at Montego Bay or further cost pressure could quickly limit earnings.
• SOS’s share price has declined 7.2% year to date to $1.54 as at the close of Thursday, August 13, 2026. At this price, the stock trades at a P/E of 25.7x, which is above the Junior Market Distribution sector average of 17.6x. Within the same period, CHL is down 2.2% year-to-date, closing at $17.02 and trading at a P/E of 22.1x. This is below the Junior Market Others average of 32.1x.

(Sources: Stationery & Office Supplies Limited & Cargo Handlers Limited Unaudited Financial Statements)