Despite rising costs, Seprod Group Limited earned JM$2.87 billion in net profit for the year ended 31 December 2020, according to audited results.
This reflected a 195 per cent increase over JM$973.33 million reported at year end December 2019.
Revenues for the year under review topped JM$37.74 billion, an improvement of 14 per cent over JM$32.69 billion at year end 2019.
“Currently, the production, sales and distribution teams have generally met or exceeded their amended sales targets for the period”
Notwithstanding, direct expenses rose JM$27.25 billion, up from $23.89 billion; while administration and other operating expenses jumped from JM$6.9 billion in 2019 to JM$7.8 billion at the year end.
Cash and cash equivalents also increased, by 88.5 per cent, from JM$1.48 billion to close the year at JM$2.79
In notes attached to the audited financials, Seprod Group’s management said that the organisation currently has a positive liquidity position, noting as well that the company has improved on trade receivables when compared to the prior year.
“Currently, the production, sales and distribution teams have generally met or exceeded their amended sales targets for the period,” the notes outlined.
Management attributed the overperformance to “the diversity of the group’s product portfolio, the increase in demand for the group’s key products (basic food items and pharmaceutical items), as well as the group’s far-reaching sales and distribution network across [Jamaica] and in its export markets”.
Seprod engages in food manufacturing and investment activities and has diversified operations located across the Caribbean. Subsidiaries include agriculture operations Belvedere Limited in Jamaica; Jamaica Caribbean Products Company Limited, and its subsidiaries and Golden Grove Funding Limited Investments in St Lucia.
Subsidiaries also include Facey Commodity Holdings Limited and its subsidiary investments company in Barbados.
The company also operates Musson Holdings in St Lucia, Musson International Dairies in Trinidad and Tobago, and Musson International Dairies in the Dominican Republic.
In Jamaica, it operates Serge Island Dairies Limited manufactures and sells milk products and juices in Jamaica.
At year end, net current assets for the group stood at JM$28.2 billion, down from JM$29.04 billion at year end 2019.
Equity attributable to stockholders of the company was JM$5.77 billion, the same as the year before.
Management said it has established a cross-functional team comprising senior management from various areas of the business, reporting to the chief executive officer, to implement measures to mitigate the impact of the pandemic.
The strategic group addresses safety and health protocols for employees, securitisation of the group’s supply chain and distribution network, liquidity risk assessment and diversification, and close monitoring of the group’s receivables.