May 16, 2024
Seprod Limited(SEP)
Seprod Limited (SEP) for the year ended December 31, 2023, reported a 43% increase in Turnover totaling $112.15 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.
The company’s Cost of Sales amounted to $80.78 billion, reflecting a 44% increase year over year. However, the company’s ability to manage costs and generate revenue is evident in the 41% increase in Gross Profit, which reached $31.37 billion compared to $22.31 billion for the year ended December 31, 2022.
Finance & Other Operating Income increased by 7% to close at $1.88 billion (2022: $1.76 billion), while Admin & Other Operating Expenses increased by 35% from $18.05 billion in 2022 to $24.35 billion in the period under review. As a result, operating profit for the year ended December 31, 2023, amounted to $8.70 billion, a 46% increase relative to $5.97 billion reported in 2022.
Finance Costs for the year ended December 31, 2023 had a 80% increase to reach $3.30 billion (2022: $1.84 billion).
Share of Results of associate & joint venture for the year ended December 31, 2023, amounted to $211.09 million, a 98% increase relative to $106.55 million reported in 2022. Share of associate & joint venture results for the fourth quarter amounted to $91.36 million (2022: $85.66 million). Profit Before Taxation totalled $5.61 billion, a 32% increase from last year’s corresponding period. (2022: $4.24 billion).
Taxation for the year ended December 31, 2023, amounted to $992.80 million, a 13% decrease relative to the $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, increased 49% to $4.61 billion (2022: $3.10 billion). Loss for the period from discontinued operations for the year amounted to $48.98 million, a 73% decrease from the $178.69 million reported in 2022. For the fourth quarter, Loss for the period from discontinued operations was $28.33 million (2022: $716,000). Net profit attributable to shareholders for the year ended December 31, 2023, amounted to $2.93 billion, a 26% increase relative to $2.32 billion reported in 2022. For the fourth quarter, net profit attributable to shareholders was $997.85 million (2022: $703.25 million).
Consequently, Earnings Per Share for the year amounted to $3.93 (2022: EPS: $2.92), while Earnings Per Share for the quarter totaled $1.36 (2022: EPS: $0.96). The number of shares used in these calculations was 733,546,855.
Notably, SEP’s stock price closed the trading period on May 15, 2024 at a price of $83.72 with a corresponding P/E ratio of 21.31x.
Balance Sheet Highlights:
The company’s assets totalled $104.57 billion (2022: $94.50 billion). The total increase in the company’s assets is attributed to an 11% YoY growth of $2.34 billion in Property, plant, and equipment, which closed at $23.12 billion year end (2022: 20.78 billion). The company also saw an astronomical rise in Trade and Other Receivables of $3.17 billion, representing a 16% YoY growth, ending the year at $22.58 billion (2022: $19.41 billion) and Inventories of $1.47 billion, accounting for a 5% YoY growth, ending the year at $28.94 billion (2022: $27.46 billion)
Shareholder’s equity was $28.21 billion (2022: $24.42 billion), representing a book value per share of $38.46 (2022: $33.29). The growth in the company’s shareholders’ equity is attributed to a rise in the company’s Retained earnings that contributed $2.00 billion to total assets and represented a 17% YoY growth, ending the year at $13.54 billion (2022: 11.54 billion) and a 26% YoY growth in the Capital Reserve account of $1.85 billion, closing the period at $8.90 billion (2022: $7.05 billion). Management has made strong returns on capital employed over the last five years at an average of 12%. These reserves will continue to compound and create shareholder value as the company makes strategic acquisitions, increases spending in CAPEX for efficiencies across the group, and continues growth in exports.
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