Durrant Pate/Contributor

Jamaican manufacturing and distribution conglomerate Seprod Group has successfully raised J$3 billion in the local capital markets to refinance short-term obligations.

This successful capital raise this month supports Seprod’s liquidity strategy by reducing refinancing risk and extending the maturity profile of its liabilities. As the group looks forward to a strong closing to the year, it remains focused on building out its strategic priorities of regional expansion, operational efficiency, brand strength and market leadership. The year-to-date performance of Seprod signals sustained progress, even amidst global uncertainties and regional challenges. 

The Richard Pandohie-led diversified group of companies delivered solid results for the third quarter (July – September 2025) with revenue increasing by eight per cent to J$37.87 billion, reflecting continued demand across the major business lines. Gross profit for the quarter was flat at J$9.91 billion, reflecting tighter margins due to increased competitive pressure in some business segments. Net profit attributable to shareholders increased to J$1.62 billion, compared to J$653.8 million in the same quarter of 2024.

This was due mainly to a J$1.24 billion gain on investment property and improved performance in the dairy manufacturing operations. The dairy operations benefited from J$700 million investment in increased packaging and processing capacity, which will increase production output and productivity. Operating expenses moderated during the quarter, increasing by only four per cent compared to the corresponding period and declining relative to the first two quarters of the financial year.

Ongoing strategy to capture synergies from recent acquisitions

Pandohie and company chairman P.B. Scott report, “This slowdown in expense growth reflects our ongoing strategy to capture synergies from recent acquisitions and strengthen cost management strategies across the group”.

“Finance costs increased moderately due to higher debt associated with strategic investments and expansions. During the quarter, we increased our ownership of A.S. Bryden & Sons Holdings from 50 per cent to 80 per cent. This consolidation deepens our regional footprint and positions the Group to capture greater synergies, improve supply chain integration and improve long-term profitability.”

The year-to-date performance (January – September 2025) shows revenues rising 21 per cent to J$113.05 billion, an increase of J$19.62 billion over the same period in 2024, driven by a steady increase in the distribution and manufacturing operations. Export sales contributed $4.47 billion. Gross profit improved by 22 per cent to J$30.12 billion. Net profit for the year-to-date closed on J$3.06 billion, an increase of three per cent, or J$84 million, versus 2024, reflecting both stronger business performance and the consolidation impact from our increased shareholding in subsidiaries. 

The conglomerate’s balance sheet remains robust with total assets of J$138.3 billion, supported by continued investments in manufacturing, technology and distribution infrastructure. While net cash declined due to capital expenditure, financing obligations and acquisition-related activities and liquidity remains strong with the management prudently managing leverage. 

Finance costs jumped 25 per cent to J$3.68 billion (2024: J$2.94 billion), reflecting higher debt levels to fund acquisitions, while total liabilities amounted to J$90.03 billion, up 17 per cent from J$76.76 billion, primarily from acquisition-related debt. The management reports that the impact of Hurricane Melissa on Seprod’s operations is expected to be mixed, reflecting the broad diversity of the group. 

In the near term, the business strategy includes shifting a portion of our distribution efforts toward the retail trade, particularly within business segments that have traditionally been concentrated among large customers in the tourism and hospitality sector,s while the management will also continue to pursue enhancements in cost efficiency as part of our ongoing efforts to strengthen profitability.