With its sights on becoming a US$1 billion company in five years, Seprod Group has identified the pillars of growth on which it will make that aspiration a reality.

Seprod has maintained growth over the last decade and now has set itself new targets.

The group has seen its revenues increase tenfold between 2013 and 2023 and is bullish on adding to revenues with exports mainly within the Caribbean Community (CARICOM) economic bloc. In fact, during that time export sales have grown from less than J$500 million to J$5.3 billion.

Year-on-year revenues rose 43 per cent, jumping from J$78.43 billion at the end of 2023 to J$112.15 billion. Operating profit also rose 45 per cent to J$8.7 billion, up from $J6 billion.

“Now, over the past year, we have made significant strides in improving our operational efficiency: investing our people and integrating acquired companies,” declared group CEO Richard Pandohie at Tuesday’s (July 16) annual general meeting at the Terra Nova All-Suite Hotel in St Andrew.

The integration to which Pandohie referred is that of AS Bryden & Sons Holdings, the distributor of fast-moving consumer goods in Trinidad and Tobago, which was acquired in June 2022.

While noting that acquisition is one of the growth pillars of the company, he said that purchasing stakes in other companies will “accelerate our growth trajectory in the domestic and export markets”.

Pointing out that the group is “poised for substantial growth over the next five years”,  

Pandohie reiterated Seprod’s goal of being a US$1 billion company by 2029 and said the business will continue to see investments in new technology and infrastructure to drive profitability and productivity.

Net profit for Seprod Group moved from $2.91 billion in 2022 to $4.56 billion last year, reflecting 56.7 per cent growth. Dividends paid in 2023 amounted to almost $1.52 billion.

“More than $2.7 billion was spent in capital expenditure in 2023 and already over $5 billion have been committed in 2024,” Pandohie shared, adding that resources will also be invested in the innovation of products and processes.

Another pillar that Seprod Group will be focused on is human resources with increased spending on talent improvement through STEM training and certifications, the chief executive said. He added that the group hired a chief strategy officer for human resources.

In his outlook, Pandohie said that Seprod, having expanded in the Caribbean, will now look at opportunities in Latin America.

Chairman PB Scott re-emphasised this vision, noting that for Seprod CARICOM has been its “domestic market”.

“Exports have been a focus for some time. At least in the last 10 years, we’ve consistently said that we see the Caribbean region as our domestic market,” he explained.

“Locally you categorise it as exports if you’re sending products to Trinidad or Barbados or Guyana but we consider [that] our products should be as prevalent in Georgetown or Bridgetown or Port of Spain as they should be in Manor Park or Mandeville,” Scott added in response to a question.

While highlighting that Seprod Group aims to not only build world-class brands but also a world-class operation, the chairman underscored the company’s investment in training and infrastructure to drive productivity and profitability. Achieving such efficiency, he said, will force the manufacturing and distribution conglomerate to look outside of Jamaica and the region.

“So the opportunity outside Jamaica is far bigger than it really is inside Jamaica and if we really want to develop and grow…we have to focus on what’s outside,” he emphasised.

Both Pandohie and Scott also spoke on the company’s engagement in co-manufacturing for companies in Jamaica and the wider Caribbean contributing to its earnings.

When asked for an update on the increase in issued shares by 600 million, Scott explained that the company is not planning a capital raise soon.  

“We felt that it was important to have the flexibility to able to look at transactions and grow our business, and there are many ways way to do that. You can acquire businesses through borrowing money or using cash that you have or you could utilise shares that you issue, and we felt that it would be prudent to have that available for us if we saw an opportunity,” he clarified.

Seprod Group’s subsidiary AS Brydens & Sons Holdings announced the acquisition of Caribbean Producers Group (Jamaica) last week without detailing the terms of the transaction.