Watching a python consume a meal is absolutely fascinating.

Its body contorts while its physiological dimensions are tested. Its metabolism is unique, and it is remarkable to behold as the python becomes larger and more formidable.

Seprod is in the process of accommodating and identifying synergies with its acquisition of A.S. Bryden of Trinidad & Tobago and Caribbean Producers Jamaica, headquartered in Montego Bay.

Like the python, this process will take time and will be intense.

Speaking at Seprod AGM held at the Terra Nova Hotel in St Andrew on Monday (July 28), group CEO Richard Pandohie’s presentation revealed that company revenue increased by 19 per cent for 2024 to J$133.6 billion, while net profit fell by 27 per cent to J$3.32 billion due to higher finance costs.

Over the last two years, Seprod has poured nearly J$8 billion into its production capacity and infrastructure. It has also been in acquisition mode.

Addressing shareholders and the media at the AGM, Pandohie said: “Companies, like any organisation, go through phases. We have been very aggressive with acquisitions. We have had the same strategy for the last eight to ten years. We are at the stage now where we have to integrate these acquisitions and extract the synergies.”

For 2024, Seprod declared dividends of J$1.82 per share with an overall payout of J$1.3 billion. That’s a dividend payout ratio of 51 per cent, which is among the highest on the Jamaica Stock Exchange (JSE).

Pandohie declared that Seprod is committed to expanding its exports. It doesn’t regard itself as solely a Jamaican player but more so a regional player, hence its acquisition strategy.

Seprod’s staff complement has grown from 1,500 people in Jamaica to over 4,500 across the region. The goal is to become a US$1 billion corporation by the end of 2026.

Speaking with Our Today after the AGM, Seprod CEO Richard Pandohie said: “ We have operations now across the Caribbean and rather than put infrastructure in every single country that we are in, what we want to do is set up superstructures to feed into each country. This means driving productivity, driving cost management.

Therefore, we can have Jamaica as a hub, so to Trinidad as well as the OECS. We are looking to build out a warehouse in St Lucia. That’s how we are going to grow and expand.

Addressing the tariff situation, Pandohie said all Seprod’s goods currently attract a 10 per cent tariff but it is still early days. We did not increase our prices, and we haven’t seen any fall off yet. The world supply chain is reorganising itself, so we have to be aggressive; after all, we are under margin pressure. You can’t just pass on the costs because your consumers have to be able to afford it. We have to give our customers something they can afford to pay for.

“In the global village, Jamaica will not be the most cost-effective because we don’t have economies of scale. People must want to pay a higher price for a Jamaican brand. It makes no sense to be unrealistic. We have to push more premier, unique products.

“As far as Seprod is concerned, the base of the region is solid, yet everyone can see the headwinds. Despite it all, we are in a position that can deliver positive results for us. I want people to be proud of what we do. It means a lot to me.”

Seprod got the nod from the SCC for its A.S. Bryden listing. Now the stock exchange has to have a meeting to approve the listing. 

“It has been a journey, but we are through the major part of it,” remarked the Seprod CEO on the efforts to list A.S. Bryden. 

Seprod will now become a major supplier to the Caribbean’s hospitality and tourism industries. These sectors are some of the most important in the Caribbean. CPJ now provides Seprod with that avenue, not just in Jamaica but across the region.

“Everything we do must be translated regionally. We bought the pieces, but we haven’t put them together yet. It will be hard work integrating these companies and driving the synergies.“