August 31, 2023

Seprod Limited (SEP) for the twelve months ended December 31, 2022, reported a 79% increase in turnover totalling $78.43 billion compared to $43.88 billion in the corresponding period last year. Turnover for the fourth quarter had a 112% increase to close at $26.99 billion compared to $12.73 billion for the comparable quarter of 2021.

Cost of sales amounted to $56.12 billion (2021: $32.97 billion), this represents an increase of 70% year over year. Consequently, gross profit increased by 104% to $22.31 billion compared to $10.91 billion for the twelve months ended December 31, 2021. The company booked gross profit of $8.89 billion for the fourth quarter versus $2.79 billion reported for the similar quarter of 2021.

Other operating income increased by 16% to close at $1.76 billion compared to $1.52 billion reported in 2021.

Administrative expenses & other operating expenses increased by 94% from $8.40 billion in 2021 to $16.28 billion in the period under review, while selling expenses increased by 332% to $1.77 billion (2021: $410.43 million) and net impairment losses on trade receivables increased by 117% to $47.18 million (2021: $21.71 million).

Operating profit for the twelve months ended December 31, 2022, amounted to $5.97 billion, a 66% increase relative to $3.60 billion reported in 2021. For the fourth quarter, operating profit was $1.16 billion (2021: $794.78 million).

Finance costs for the twelve months amounted to $1.84 billion, a 53% increase relative to $1.20 billion reported in 2021. Share of results of joint venture increased by 35% to reach $106.55 million (2021: $79.14 million).

Profit before taxation totalled $4.24 billion, an 84% increase from the corresponding period last year (2021: $2.31 billion).

Taxation for the twelve months amounted to $1.15 billion, a 568% increase relative to $171.72 million reported in 2021. Taxation for the fourth quarter amounted to $312.02 million (2021: $223.60 million).

Net profit from continuing operations for the twelve months ended December 31, 2022 had a 45% increase to reach $3.10 billion (2021: $2.14 billion). Loss from discontinued operation for the twelve months amounted to $178.69 million, a 23% increase from the loss of $145.83 million reported in 2021. For the fourth quarter, loss from discontinued operation was $100.27 million (2021: loss of $86.06 million).

Net profit attributable to shareholders for the twelve months ended December 31, 2022, amounted to $2.14 billion, an 8% increase relative to $1.99 billion reported in 2021. For the fourth quarter, loss attributable to shareholders was $106.47 million (2021: profit of $291.57 million).

Earnings per share (EPS) for the twelve months amounted to $2.92 (2021: $2.72), while LPS for the quarter totalled $0.15 (2021: EPS of $0.40). The number of shares used in these calculations was 733,546,855.

Notably, SEP’s stock price closed the trading period on August 30, 2023, at a price of $68.65 with a corresponding P/E ratio of 23.49x.

Balance Sheet Highlights:

The company’s assets increased by 101% to $94.50 billion (2021: $46.91 billion). This increase was largely due to inventories, which grew 169% from $10.21 billion in 2021 to $27.46 billion in 2022.

Shareholder’s equity was $27.55 billion (2021: $23.45 billion), representing a book value per share of $37.56 (2021: $31.97).

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