October 21, 2020
Seprod Limited (SEP)
For the nine months ended September 30, 2020:
Revenue, for the nine months ended September 30, 2020, totalled $28.66 billion compared to the $24.80 billion recorded for the same period of the prior financial year; this represents a 16% increase year over year. Revenue for the quarter totalled $10.05 billion, a 23% increase relative to $8.19 billion the prior year.
Cost of Sales rose by 15% from $15.77 billion to $18.06 billion. Consequently, Gross Profit increased 17% to close at $ $10.60 billion (2019: $9.02 billion).
Finance and Other Income for the period totalled $997.70 million relative to $175.03 million in 2019 a 470% increase year over year.
Other operating expenses increased by 11% to close the nine months at $7.78 billion (2019: $6.99 billion). Operating Profit increased by 73% to total $3.81 billion (2019: $2.21 billion) for the nine months. Operating Profit for the quarter increased 159% to close at $1.69 billion relative to $650.89 million booked for the prior year’s corresponding quarter. Seprod stated that, “the increase in the quarter’s profit from continuing operations 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 and deliberate efforts made in prior years to strengthen the business fundamentals.”
Finance Costs totalled $866.09 million; a negligible decrease of 0.1% compared $866.67 million in 2019. Pre-tax Profits more than doubled to end at $2.93 billion in comparison to profits of $1.39 billion last year, representing a 111% increase. Taxation of $401.17 million was booked for the period relative to $233.81 million in 2019 to result in a Net Profit from continuing operations of $2.53 billion (2019: $1.16 billion).
The Company also reported loss from discontinued operation of $47.30 million relative to last year’s loss from discontinued operations of $786.50 million. As such, Net Profit for the nine months ended September 2020 totalled $2.48 billion (2019: $377.75 million), while for the quarter Net Profit amounted to $1.28 billion relative to the net loss of $175.37 million for the comparable quarter of 2019.
Additionally, Seprod, for the nine months ended September 30, 2020, reported Total Comprehensive Income of $2.61 billion relative to $469.98 million reported in the corresponding 2019 period.
Earnings Per Share for the nine months ended September 30, 2020 amounted to $3.38 relative to $0.51 for the corresponding period in 2019. The EPS for the quarter was reported at $1.75 relative to LPS of $0.24 reported in 2019. The twelve months trailing EPS is $4.20. The number of shares used in our calculations is 733,546,855. SEP stock price closed the trading period on October 20, 2020 at $58.24.
Furthermore, the Company noted, “The pandemic has had a negative impact on our operations, but the Group’s diversified portfolio has certainly allowed it to be resilient up to this point. Additionally, “We see 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, we are projecting solid Q4 results to close out a strong 2020 performance.”
Balance Sheet at a Glance:
As at September 30, 2020, the company’s total assets increased by 11% to $38.06 billion from $34.24 billion a year earlier. The main contributors to the upward movement were ‘Cash and Bank Balances’ and ‘Right of Use Asset’ which closed the period at $3.12 billion (2019: $1.55 billion) and $661.63 million (2019: nil), respectively.
Shareholder equity for the period was $16.54 billion relative to $14.82 billion last year. Book value per share is now $22.55 relative to $20.21 last year. The number of shares used in our calculations is 733,546,855.
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