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Manufacturing

Signage for Seprod Group of Companies at its headquarters in Kingston, Jamaica (File photo)

Seprod profit up 86 per cent

Signage for Seprod Group of Companies at its headquarters in Kingston, Jamaica (File photo)

In unaudited results released this week, Seprod Limited posted net profit from continuing operations of JM$3.17 billion, an increase of JM$1.46 billion for the year ended December 31, 2020, or 86 per cent over the corresponding period in 2019.

The food company, which has 18 markets globally, pulled in revenues of  JM$38.07 billion — an increase of JM$5.37 billion or 16 per cent over revenues for the financial year 2019.

International Biscuits Limited is one of Seprod’s portfolio companies
(Photo courtesy of Seprod)

For the fourth quarter, the group achieved revenues of JM$9.41 billion, an increase of JM$1.51 billion or 19  per cent over the corresponding period in 2019.

In the quarter, the group  achieved net profit of JM$614 million, an increase of J$19 million or three per cent over the corresponding period in 2019. 

Innovation and diversification

According to remarks attached to the period’s financials, “This ended a good year that validated deliberate efforts made by the board in prior years to focus on execution, a strong innovation pipeline and diversification of our revenue pillars.”

Group CEO of Seprod Richard Pandohie (File photo)

Sepreod directors added, “The pandemic has brought many challenges, but it has also offered opportunities for us to relook at how we operate, accelerated our digitisation process, and is driving us to expand our innovation pipeline to include healthier options.” 

Net profit from continuing operations of J$3.17 billion included a one-off gain of JM$762 million from the sale of a property that the Group was able to dispose of due to the consolidation and relocation of a distribution operation. 

The Group exited loss-making sugar manufacturing operations in July 2019. 

“The pandemic has brought many challenges, but it has also offered opportunities for us to relook at how we operate, accelerated our digitisation process, and is driving us to expand our innovation pipeline to include healthier options”

As required by accounting standards, the losses from this discontinued operation are presented as a single line item in the Statement of Comprehensive Income until the operation has been disposed of (losses for historical periods have also been re-presented in this manner for comparability). 

The losses from this discontinued operation for the year ended 31 December 2020 amounted to J$70 million. This compares to losses of J$732 million (inclusive of a J$331 million write-down in assets following the closure of the factory) for the corresponding period in 2019. 

Serge Island Milk, a product of Seprod Group of Companies (File photo)

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

They noted that the company has “gone above and beyond the health protocol guidelines of the Ministry of Health and Wellness” to ensure the safety of everyone that has to interface with the business and to ensure supply continuity to customers and consumers.