Business
JM | May 20, 2022

Strong revenue gains by Seprod during March quarter

/ Our Today

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Robust export growth and price increases main contributing factors

The Felix Fox Boulevard headquarters of Seprod Limited in downtown Kingston, Jamaica. (Photo: Contributed)

Durrant Pate/ Contributor

The Seprod Group achieved strong revenue growth of J$2.23 billion or 23 per cent revenues to J$11.81 billion during the just-ended March 2022 quarter.

The revenue growth by the Jamaican manufacturing conglomerate was driven by robust export growth, improved product mix and price increases. As a result, net profit jumped to J$595 million, an increase of J$49 million or nine per cent year-on-year growth.

Total comprehensive income for the quarter amounted to J$614.28 million for the quarter under review, compared to the J$602.43 million booked during 2021. This performance is considered creditable given the face that, overall, the global market is highly volatile and there is downside risk of higher input prices and availability issues, which the company has no control over. 

Richard Pandohie, CEO of Seprod. (Photo: Facebook @SeprodGroup)

The Manufacturing Division recorded a 37 per cent increase in revenue to close at J$7.21 billion, up from the J$5.24 billion posted in March 2021, while the Distribution Division increased by 14 per cent, closing at J$8.45 billion, up from J$7.40 billion in 2021. The group’s share of results of joint venture went down more than twofold to J$5.92 million, down from the J$14.13 million posted in 2021.

Direct expenses increased by 29 per cent, from J$6.90 billion in 2021 to $8.87 billion in 2022.

Raw and packaging materials at 10-year high

The cost of key raw and packaging materials is at 10-year high levels and showing very little sign of retreating.

Seprod Chairman P.B. Scott and CEO Richard Pandohie report that the “company  is mitigating the aforementioned risk by improving its productivity by going live with the centralised logistics centre (delayed from end April to end June 2022) and retooling of factories”.

Seprod Group chairman P.B. Scott. (Photo: Facebook @SeprodGroup)

They added: “We will continue pushing product innovation, growing exports, becoming the partner of choice for great brands and focusing on supporting our people to unleash their full potential.”

Earnings per share (EPS) for the three months ended March 31, 2022 amounted to $0.81 versus $0.74 booked in the corresponding period of 2021. The 12 months trailing EPS is $2.78.

As at March 31, 2022, Seprod’s total assets increased by 20 per cent to J$45.79 billion from J$38.08 billion a year ago. The growth in assets was largely due to increases in ‘Fixed Assets’ and ‘Inventories’ which closed at J$14.03 billion (2021: J$7.05 billion) and J$9.15 billion (2021: J$6.19 billion) respectively.

However, this was tempered by a 64 per cent decline in ‘Cash and Bank Balances’ which closed at J$1.14 billion (2021: J$3.13 billion). Shareholders’ equity for the period ended at J$24.06 billion relative to J$17.28 billion last year, indicating a 39 per cent increase. This translated into a book value per share of J$32.80 (2021: J$23.55).

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