Profit climb 41% at Seprod

Revenue of $18.61 billion was reported for foods producer Seprod Limited for the six months ended June 30, 2020, an increase of J$2 billion or 12 per cent over the corresponding period in 2019.

Revenue at Seprod increased by J$2 billion for the six-month period ended June 30.

Net profit for the company over the period was J$1.22 billion, which was J$354 million more than the similar period last year, or an increase of 41 per cent.

Chief executive officer Richard Pandohie said that when losses linked to closed sugar factory are stripped out, profit would have doubled year over year.

Pandohie said growth was the result of consolidating the dairy factories, increasing exports and expanding the distribution network through the acquisition of the Facey Commodity Consumer business.

Seprod’s CEO Richard Pandohie said the consolidation of its dairy factories aided the growth in the company’s performance.

Losses posted for the shuttered sugar operations, in the current six months, were much less than the year before.

For the six-month review period, losses were $16 million compared to $309 million the year before.

Pandohie said in his letter to shareholders, attached to the six month results, that the company is pursuing the disposal of non-operating assets as a part of a new cash flow generation and conservation strategy implemented to face the current crisis.

“The pandemic has had a negative effect on our operations, but  the Group’s diversified portfolio has certainly allowed  it to be resilient up to this point,” he outlined.

Seprod owns the Eve, Serge, Delite and Miracle brands.

The economic dislocation, he said, had provided a “massive opportunity” to restructure and diversify.

Averaging $36 billion in revenues annually, Sepord is an 80-year-old company which describes itself as the biggest food producer in the Caribbean. It exports to 18 countries globally.

The company owns Eve, Serge, Delite and Miracle food brands among other food products.

Operations include the Jamaica Grains & Cereals plant, a joint venture partnership with Seaboard, which exports to several Caribbean markets.

Subsidiary Caribbean Products Company Limited is the principal manufacturer of cooking oil, margarine and shortening in Jamaica.

It also produces specialty fats for the bakery trade and private label brands for third party customers.

The company also manufactures PET and HDPE bottles for the packaging of its oil products.