Taiga Building Products
Following on from our analysis of Avarga, we dive into its main subsidiary, which is listed in Canada – Taiga Building Products (‘Taiga’).
Since Taiga is Avarga’s dominant asset, most of the economic analysis is redundant – except for some additional information below.
Taiga is the largest independent wholesale distributor of building products in Canada (comprising 78% of sales). In addition, it sells to the US and parts of Asia.
Its inventories comprise lumber products (70%), allied building products (18%), panel products (11%) and production consumables.
The company recently reported losses for the quarter ending September (which wasn’t available for Avarga) – this seems primarily due to rapidly falling prices of lumber, set against relatively higher inventory costs accumulated earlier in the year.
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