February 16, 2024

Seprod Limited (SEP) for the year ended December 31, 2023, reported a 44% increase in turnover totalling $113.04 billion compared to $78.43 billion in the corresponding period last year. Turnover for the fourth quarter had a 9% increase to close at $30.84 billion compared to $28.23 billion for the comparable quarter of 2022.

Cost of sales amounted to $84.40 billion (2022: $56.12 billion), this represents an increase of 50% year over year. Consequently, gross profit increased by 28% to $28.64 billion compared to $22.31 billion for the year ended December 31, 2022. The company booked gross profit of $7.79 billion for the fourth quarter versus $7.27 billion reported for the similar quarter of 2022.

Other operating income increased by 16% to close at $2.04 billion (2022: $1.76 billion), while other operating expenses increased by 16% from $18.10 billion in 2022 to $21.03 billion in the period under review. As a result, operating profit for the year ended December 31, 2023, amounted to $9.65 billion, a 62% increase relative to $5.97 billion reported in 2022.

Share of results of joint venture for the year ended December 31, 2023, amounted to $268.69 million, a 152% increase relative to $106.55 million reported in 2022. Share of results of joint venture for the fourth quarter amounted to $91.36 million (2022: $85.66 million).

Finance costs for the year ended December 31, 2023, had a 66% increase to reach $3.05 billion (2022: $1.84 billion).

Profit before taxation totalled $6.86 billion, up 62% from the corresponding period last year (2022: $4.24 billion).

Taxation for the year ended December 31, 2023, amounted to $1.34 billion, a 17% uptick relative to $1.15 billion reported in 2022. Taxation for the fourth quarter amounted to $57.41 million (2022: $59.87 million).

Net profit from continuing operations for the year ended December 31, 2023, had a 78% increase to reach $5.53 billion (2022: $3.10 billion). Loss from discontinued operation for the year amounted to $74.48 million, a 58% decline from the loss of $178.69 million reported in 2022.

The Company reported net profit of $5.45 billion compared to $2.92 billion reported for December 2022; an 87% increase year over year.

Net profit attributable to shareholders for the year ended December 31, 2023, amounted to $3.77 billion, a 76% improvement relative to $2.14 billion reported in 2022. For the fourth quarter, net profit attributable to shareholders was $997.85 million (2022: $703.25 million).

Earnings per share (EPS) for the year amounted to $5.14 (2022: EPS: $2.92), while EPS for the quarter totalled $1.36 (2022: $0.96). The number of shares used in these calculations was 733,546,855.

Notably, SEP’s stock price closed the trading period on February 15, 2024, at a price of $83.72 with a corresponding P/E ratio of 16.29x.

Balance Sheet Highlights:

The company’s assets totalled $97.00 billion (2022: $94.50 billion); an increase of 3% year over year due largely to a 17% rise in receivables, which closed at $22.74 billion (2022: $19.41 billion).

Shareholder’s equity was $30.05 billion (2022: $27.55 billion), representing a book value per share of $40.96 (2022: $37.56).

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