The Seprod Group achieved revenues of J$18.61 billion from continuing operations for the six months ended June 2020.The performance is an increase of J$2 billion or 12 per cent over the corresponding period in 2019.
Net profit was J$1.22 billion, an increase of $354 million over 2019.
The increase was due to investment made in previous years in strengthening business fundamentals, said management in the company’s annual report.
Seprod Group CEO Richard Pandohie says the company is moving ahead with the J$2.5 billion to be spent on warehousing operation, a project slated for completion in 2021.
The Seprod Group is organised into two main business segments: Manufacturing – which incorporates the operations for manufacturing and sale of oils and fats, corn and wheat products, cereals, milk products, juices and biscuits – and Distribution, which includes the merchandising of consumer goods.
Pandohie stated, “The pandemic COVID-19 is truly reshaping our world and the way we do business. Whilst there are many unknowns, it is the intent of your management to deliver strong revenue and operating profit growth exciting innovations in all our operations.
Goals for 2020, he outlined, include the driving of distribution synergies to improve efficiencies, distribution footprint and gain more control of the supply chain from factory to retail shelves; and continuing to look for acquisition opportunities and partnerships (locally and internationally) that will be value enhancing.
The company is also planning to expand exports by 25 per cent annually. It also targets an increase in contract manufacturing opportunities.
In the year ended December 2019, company revenues climbed to $32.69 billion up from $22.49 billion in 2019.
Net profit was $973.33 million compared to $1.06 billion in 2018.
As outlined in the 2019 annual report by Pandohie, the 2019 performance “is to be taken in the context of significant one-time costs to close the sugar factory and to execute the consolidation of its dairy factories.”
Pandohie said Seprod, “will be spending a tremendous amount of money to consolidate our warehousing operations and create a distribution organisation that will be cost competitive and have superior customer focus. The project commenced in 2019 with the first warehouse completed and Industrial Sales Limited (one of our distribution companies) being relocated to Felix Fox Boulevard.
“The other warehouses will commence in 2020 and will be supported by an expanded distribution fleet.”
He outlined that tight management of cash, including cash conservation and disposal of non-operating assets, will continue in the company’s third quarter in 2020.