Durrant Pate/Contributor

Jamaican conglomerate Seprod Limited is experiencing a honeymoon run of profitability and increased revenues, particularly since its acquisition last year of Trinidad-based distribution company, A.S. Bryden Holdings (ASBH).

For its just released fourth quarter, (October-December 2023) Seprod achieved revenues of J$30.84 billion, an increase of $2.61 billion or nine per cent over the corresponding period in 2022 while net profit closed on J$1.49 billion, an increase of $279 million or 23 per cent over the prior period.

The full-year performance of January-December 2023 was equally impressive with revenues of J$113.04 billion, an increase of $34.61 billion or 44 per cent over the corresponding period in 2022. At the same time, net profit surged to J$5.45 billion, an increase of J$2.53 billion or 87 per cent over the prior period. 

Seprod acquired a majority shareholding in ASBH in June 2022. As such, Seprod’s full 2023 results include the 12-month financial results of ASBH compared to seven months for 2022. 

Reasons cited for improved performance

The management explained that the improved business performance remains consistent with the prior quarters, specifically continued growth in the business post-ASBH acquisition in June 2022, a 45 per cent increase in export sales and significant progress in the modernization of the margarine plant, which has led to improved availability of key shortening and margarine products. 

Despite the high risk of uncertainty in the geopolitical environment and increasing credit risk in the domestic market, management is positive on the outlook and is focused on several initiatives to deliver outstanding results, which include:

• Deepening technology integration in the business to drive efficiency and to improve productivity.

• Growing exports by at least 40 per cent.

• Upskilling human capital.

• Extracting synergies from the ASBH acquisition.

• Continuing the build-out of Seprod’s regional platform to be the partner of choice for brands.