November 14, 2023

Seprod Limited (SEP) for the nine months ended September 30, 2023, reported a 60% increase in revenue totalling $82.20 billion compared to $51.44 billion in the corresponding period last year. Revenue for the third quarter had a 17% increase to close at $27.75 billion compared to $23.64 billion for the comparable quarter of 2022.

Cost of sales amounted to $61.34 billion (2022: $38.02 billion), this represents an increase of 61% year over year. Consequently, gross profit increased by 55% to $20.86 billion compared to $13.42 billion for the nine months ended September 30, 2022. The company booked gross profit of $7.04 billion for the third quarter versus $6.40 billion reported for the similar quarter of 2022.

Other operating income increased by 220% to close at $1.72 billion (2022: $538.69 million), while other operating expenses increased by 65% from $9.15 billion in 2022 to $15.08 billion in the period under review. As a result, operating profit for the nine months ended September 30, 2023, amounted to $7.51 billion, a 56% increase relative to $4.81 billion reported in 2022.

Finance costs for the nine months ended September 30, 2023, had an 84% increase to reach $2.39 billion (2022: $1.30 billion).

Share of results of associate & joint venture for the nine months ended September 30, 2023, amounted to $177.33 million, a 398% increase relative to $35.64 million reported in 2022. Share of profit of associate & joint venture for the third quarter amounted to $40.93 million (2022: loss of $19.63 million). Profit before taxation totalled $5.29 billion, a 49% increase from the corresponding period last year (2022: $3.54 billion).

Taxation for the nine months ended September 30, 2023, amounted to $1.28 billion, a 53% increase relative to $834.92 million reported in 2022. Taxation for the third quarter amounted to $620.04 million (2022: $401.55 million).

Net profit from continuing operations for the nine months ended September 30, 2023, had a 48% increase to reach $4.01 billion (2022: $2.71 billion). Net loss from discontinued operation for the nine months amounted to $46.15 million, a 41% decrease from the $78.42 million reported in 2022.

Net profit attributable to shareholders for the nine months ended September 30, 2023, amounted to $2.77 billion, a 23% increase relative to $2.25 billion reported in 2022. For the third quarter, net profit attributable to shareholders was $886.67 million (2022: $771.61 million).

Earnings per share (EPS) for the nine months amounted to $3.78 (2022: $3.07), while EPS for the quarter totalled $1.21 (2022: $1.05). The twelve-month trailing EPS was $3.63, and the number of shares used in these calculations was 733,546,855.

Notably, SEP’s stock price closed the trading period on November 14, 2023, at a price of $76.65 with a corresponding P/E ratio of 21.09x.

Balance Sheet Highlights:

The company’s assets totalled $93.00 billion; a 15% increase relative to $80.81 billion booked in 2022. This upward movement was largely due to a 22% increase in inventories, which amounted to $24.82 million (2022: $20.27 million), followed by a 28% increase in receivables, which amounted to $20.10 million (2022: $15.67 million).

Shareholder’s equity was $29.69 billion (2022: $27.83 billion), representing a book value per share of $40.48 (2022: $37.94).

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