Contributed to net profit surging by 113% to J$1.05 billion

Durrant Pate/ Contributor

Jamaican food and distribution conglomerate, Seprod Group is already reaping much benefit from its acquisition earlier this year of A.S. Bryden & Sons Holdings, a leading distributor of food and household goods in Trinidad and Tobago.

In its just-released quarter report for the period July-September 2022 Seprod’s net profit has increased by J$557 million or 113 per cent to J$1.05 billion. Revenues for the quarter was equally impressive surging by J$12.31 billion or 109 per cent to close at J$23.64 billion.

The quarterly performance without the effect of the acquisition saw revenue growth of 13 per cent and net profit growth of a mere five per cent. The year-to-date performance sees net profit closing the nine-month period at J$2.63 billion, an increase of J$930 million or 55 per cent over the same period last year.

Revenues went up by J$20.29 billion or 65 per cent to J$51.44 billion. Seprod without the effect of the acquisition shows revenue growing by 19 per cent and profit by 10 per cent.

Export growth and new snack line

In addition to the acquisition of the Bryden Group, which closed in May this year, revenue growth and profitability was also due to the 16 per cent year-to-date export growth, the launch of new snack line and price increases. However, at the same time, costs went up.

The Group has incurred extraordinary warehousing and logistics cost from the use of third party warehouses due to the destruction of its main logistics centre in New Port West in Kingston in 2021. The management is reporting that the company has started reducing these expenses, as it transitions to its new distribution campus at Marcus Garvey Drive, adjoining its corporate head office.

“There have been some positive developments in the global supply chain space with regards to lowering of some key commodity process and shipping cost. Despite having significant higher priced inventory (which had been acquired to minimise supply shortages to our market), we have begun lowering prices to the distribution and retail trade as lower cost inventory comes into the system,” the management advised shareholders in its quarterly report to them.

The management expressed confidence that, with the full reopening of the economies within which the company is operating and with the Christmas season approaching, the fourth quarter will produce robust results for the group.