Durrant Pate/ Contributor
Despite being rocked by a J$159 million fraud uncovered earlier this year, Jamaican manufacturing conglomerate, Seprod Group is exhibiting much resilience with soaring revenues and profitability for the first quarter, ended March 31, 2023.
Seprod chalked up revenues of J$27.06 billion, an increase of J$15.25 billion or 129% over the corresponding period in 2022 while net profit amounted to J$1.36 billion, a hike of J$761 million or 128% over the prior period. This performance, the Richard Pandohie led management says is in line with expectations.
There was a 25% increase in export sales with organic growth in the domestic market due to post COVID-19 economic recovery but it’s the Trinidad and Guyana markets that have exhibited revenue growth.
Trinidad and Guyana markets soaring
According to the management, “the increase in revenue was driven by continued growth in the Trinidad and Guyana markets. Trinidad has had strong consumer demand after lifting COVID-19 restrictions on public events. Guyana’s growth trajectory makes it the fastest growing economy in the world, and this is evident in consumer and business demand.”
The profit line has been positively impacted, as Seprod transitions to its new distribution campus, thus eliminating over J$300 million of extraordinary warehousing and logistics costs incurred due to the destruction of its main logistics centre in 2021.
“The modernization of the major margarine plant is in progress and this unfortunately limited the availability of key stock-keeping unit (SKUs) in Q1; this challenge will be behind us by the end of June 2023,” the company explains in its latest quarterly report to shareholders.
Seprod continues to pass on price reductions to retail and business customers, as it experiences lower input costs, particularly in its manufacturing facilities. Despite the high level of uncertainty in the geo-political environment, Seprod remains confident that it will deliver an outstanding year.