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Seprod profits from sale of property

The Seprod Group achieved revenue of J$10.05 billion for the nine months ended September 30, an increase of J$1.86 billion over the corresponding period last year.

Seprod Group achieved revenue of J$10.05 billion for the nine-months ended September 30.

The company also reported net profit from continuing operations of J$1.31 billion, an increase of J$1.03 billion over the corresponding period in 2019.

The increase in the quarter’s profit was due largely to a one-off gain of J$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.

Chief executive officer Richard Pandohie indicated that this property is the ISL warehouse at 105-107 Marcus Garvey Drive.
Increased earnings were also due to deliberate efforts made in prior years to strengthen business fundamentals, management said.

Seprod consolidated its dairy operations which helped to strenghten its position.

These efforts included consolidating the dairy factories, increasing exports and expanding the distribution footprint through the acquisition of the Facey Consumer business.

Seprod Group exited loss-making sugar manufacturing operation in July 2019.

As required by accounting standards, the losses from this discontinued operation for the three months ended September 30 are reported as J$31 million for the quarter.

This compares to losses of J$460 million (inclusive of a J$331 million write-down in assets following the closure of the factory) for the corresponding period in 2019.

Year-to-date, revenues from continuing operations for the nine-month period amounted to J$28.66 billion, 16 per cent more than the corresponding period in 2019.

This translated to a net profit from continuing operations of J$2.53 billion, an increase of J$1.37 billion or 117 per cent over the corresponding period in 2019.

Losses from the discontinued sugar manufacturing operation for the nine months ended September 30 amounted to J$47 million.
This compares to losses of J$786 million for the corresponding period in 2019.

Company chairman PB Scott and Pandohie, in remarks attached to the period’s results, said the pandemic has had a negative impact on operations, but the Group’s diversified portfolio facilitated resilience.

They anticipate a “risk in the global supply chain that could impact raw material availability and prices, disposable income pressure on our consumers and availability of workers as the community spread of the coronavirus intensifies.”

Nonetheless, the company heads say they are projecting “solid Q4 results to close out a strong 2020 performance.”

Management noted, “We have 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 our customers and consumers.”