August 14, 2023

Seprod Limited (SEP) for the six months ended June 30, 2023, reported a 96% increase in revenue totalling $54.46 billion compared to $27.81 billion in the corresponding period last year. Revenue for the second quarter had a 71% increase to close at $27.39 billion compared to $16.00 billion for the comparable quarter of 2022.

Cost of sales amounted to $40.64 billion (2022: $20.78 billion), this represents an increase of 96% year over year. Consequently, gross profit increased by 97% to $13.82 billion compared to $7.03 billion for the six months. The Company booked gross profit of $6.91 billion for the second quarter versus $4.09 billion reported for the similar quarter of 2022.

Other operating income decreased by 13% to close at $453.83 million (2022: $518.69 million), while other operating expenses increased by 107% from $4.72 billion in 2022 to $9.74 billion in the period under review.

Operating profit year to date amounted to $4.53 billion compared to $2.83 billion booked in 2022 for the six months ended June 30, 2022. Operating profit for the quarter closed at $2.26 billion relative to $1. 83 billion, a 23% improvement year over year.

Finance costs for the six months amounted to $1.44 billion, a 76% increase relative to $819.86 million reported in 2022.

Share of results of associates & joint venture for the six months amounted to $136.40 million, a 147% increase relative to $55.26 million reported in 2022. Profit before taxation totalled $3.23 billion, a 56% increase from the corresponding period last year (2022: $2.07 billion).

Taxation for the six months amounted to $660.64 million, a 52% decrease relative to $433.37 million reported in 2022.

As a result, net profit from continuing operations for the six months had a 57% increase to close at $2.57 billion (2022: $1.63 billion). Net loss from discontinued operation for the six months amounted to $23.03 million, a 56% decrease from the $52.61 million reported in 2022. For the second quarter, net loss from discontinued operation was $14.28 million (2022: $18.39 million).

Net profit attributable to shareholders for the six months amounted to $1.89 billion, a 28% increase from the $1.48 billion booked a year earlier.

Earnings per share (EPS) for the six months amounted to $2.57 (2022: $2.02), while EPS for the quarter totaled $1.23 (2022: $1.20). The twelve-month trailing EPS was $4.58, and the number of shares used in these calculations was 733,546,855.

Notably, SEP’s stock price closed the trading period on August 14, 2023 at a price of $69.96 with a corresponding P/E ratio of 15.27x.

Balance Sheet Highlights:

The company’s assets totalled $91.27 billion (2022: $78.07 billion). This increase was largely due to inventories, which grew 37% from $17.85 billion in 2022 to $24.39 billion in 2023.

Shareholder’s equity was $29.95 billion (2022: $27.51 billion), representing a book value per share of $40.82 (2022: $37.50).

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