Recovery Momentum Strengthens Q1 Performances at SOS and OMNI

Supported by improving post-Hurricane Melissa conditions, Stationery & Office Supplies Limited (SOS) and OMNI Industries Limited (OMNI) both delivered stronger Q1 2026 (March 21, 2026) performances, aided by normalised operations and increased reconstruction activity.
SOS recorded revenues of J$539.36Mn (+0.4%) for Q1 2026, representing the highest quarterly revenue in the company’s history. Revenues benefited from the normalisation of operations following disruptions caused by Hurricane Melissa, along with the successful commissioning of the new SEEK factory, which is now operating at full capacity.
Operationally, SOS completed the rebuilding of its Montego Bay warehouse, which became fully operational in January 2026 following severe damage from Melissa. Management highlighted the official launch of the standalone SEEK factory as a major milestone that should support stronger production capacity and long-term growth opportunities throughout 2026.
Direct costs down 9.3% allowed gross profit to rise to J$301.62Mn (+9.5%) with an associated increase in margins to 55.9% from 51.3%. However, total operating expenses rose 9.9%, given higher administrative and general expenses and an increase in selling and promotional expenses. Still, net profit increased by 7.1% to J$78.78Mn for the quarter supported by topline expansion and lower direct costs.
For its part, OMNI continued to capitalise on elevated demand linked to post-Hurricane reconstruction activity and growth within Jamaica’s construction sector, posting a 179.7% increase in net profit to J$85.68Mn for Q1 2026.
Quarterly revenues surged by 47.3% to J$693.30Mn, supported primarily by higher sales volumes in the construction segment, which accounted for 57% of total revenues. The company also benefited from increased domestic demand for storage products tied to post-Melissa rebuilding efforts.
Direct sales (49.9%) moved in tandem with revenues as the company sourced certain raw materials from non-traditional suppliers to mitigate ongoing global logistics disruptions and supply chain delays stemming from geopolitical tensions. Despite these pressures, gross profit rose by 43.0% to J$259Mn as stronger sales volumes offset the increase in input expenses. However, gross margins fell from 38.6% to 37.4%.
Operating expenses increased by 16.3% due to higher haulage expenses and additional depreciation charges associated with newly commissioned machinery. Even so, operating profit reached J$92Mn (+148%). In contrast, finance costs declined by 3.0% to J$6.2Mn, reflecting tighter debt management and improved financing efficiency. Combined with robust revenue growth, this supported a sharp improvement in profitability, with net margin profit reaching 12.4% from 6.5%.
Looking ahead, OMNI is expected to remain a key beneficiary of Jamaica’s reconstruction phase following Hurricane Melissa, particularly through elevated demand for PVC pipes, roofing materials and electrical conduit products.
As at the close of trading on May 14, 2026, SOS and OMNI’s ordinary share prices closed at $1.48 and $1.00, respectively, reflecting a 10.8% year-to-date decrease for SOS and a 1.0% increase for OMNI. These prices imply a P/E ratio of 24.67x for SOS, which is above the Junior Market Distribution Sector Average of 24.01x. However, OMNI holds a PE of 12.20x, below the Junior Market Distribution Sector Average.

(Sources: SOS Financials, OMNI Financials & NCBCM Research)