May 8, 2023
Seprod Limited (SEP) for the three months ended March 31, 2023:
Revenue increased 129% to $27.06 billion (2022: $11.81 billion). Management noted that the increase was driven by continued growth in the Trinidad and Guyana markets, growing economy in the world, 25% increase in export sales and organic growth in the domestic market due to post COVID-19 economic recovery.
Direct expenses increased 127% to $20.15 billion (2022: $8.87 billion). Consequently, gross profit increased 135% to $6.91 billion (2022: $2.94 billion).
Other operating income increased 112% to $222.19 million (2022: $104.75 million) while other operating expenses increased 138% to $4.86 billion (2022: $2.04 billion).
Operating profit increased 128% to $2.27 billion (2022: $996.83 million).
Finance costs increased 135% to $619.44 million (2022: $263.12 million).
Share of results of joint venture soared to $106.08 million (2022: $5.92 million).
Profit before taxation increased 138% to $1.76 billion (2022: $739.63 million).
Taxation charge increased 259% to $396.05 million (2022: $110.20 million).
As a result, profit from continuing operations increased 117% to $1.36 billion (2022: $629.43 million).
Net profit increased 128% to $1.36 billion (2022: $595.21 million). Net profit attributable to shareholders increased 65% to $981.32 million (2022: $595.21 million).
Total comprehensive income increased 116% to $1.33 billion (2022: $614.28 million).
Earnings per share (EPS) amounted to $1.34 (2022: $0.81). The twelve-month trailing EPS amounted to $4.55. The number of shares used in our calculations amounted to 733,546,855 units. SEP’s stock price closed the trading period on May 5, 2023 at $68.41 with a corresponding P/E ratio of 15.03 times.
Management noted that the profit line has been positively impacted as the Group transitions to its new distribution campus, eliminating over J$300m of extraordinary warehousing and logistics costs incurred due to the destruction of its main logistics centre in 2021.
Additionally, the Group continues to pass on price reductions to retail and business customers as it experiences lower input costs, particularly in its manufacturing facilities.
Balance Sheet at a Glance:
Total assets as at March 31, 2023 increased 91% to $87.29 billion (2022: $45.79 billion). This upward movement was mainly attributable to a 160% increase in ‘Inventories’ to $23.79 billion (2022: $9.15 billion) and a 178% increase in ‘Receivables’ to $19.12 billion (2022: $6.89 billion).
Shareholders’ equity as at March 31, 2023 increased 19% to $28.69 billion (2022: $24.06 billion). This translated into a book value per share of $39.11 (2020: $32.80).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
