February 10, 2021
Seprod Limited (SEP) posted revenue totalling $38.07 billion compared to $32.69 billion recorded for the same period of the prior financial year, representing a 16% increase year over year. Revenue for the quarter amounted to $9.41 billion relative to the $7.90 billion reported in 2019. The Company stated, “This ended a good year that validated deliberate efforts made by the Board in prior years to focus on execution, a strong innovation pipeline and diversification of our revenue pillars. The pandemic has brought many challenges, but it has also offered opportunities for us to relook at how we operate, accelerated our digitization process and is driving us to expand our innovation pipeline to include healthier options.”
Direct expenses increased by 6% from $23.89 billion to $25.34 billion, resulting in gross profit increasing by 45% to close at $12.73 billion (2019: $8.80 billion). For the quarter, gross profit closed the period at $2.129 billion (2019: $2.125 billion), a negligeable 0.2% increase when compared to the previous comparable period.
Other operating income totalled $1.47 billion compared to $1.31 billion in 2019, an increase of 12% year over year. For the quarter, Other operating income declined by 59% to close at $467.97 million (2019: $1.14 billion).
Other operating expenses increased by 24% to close the year end period of 2020 at $9.09 billion (2019: $7.31 billion).
As such, Operating profit grew 82%, moving from $2.80 billion in 2019 to $5.10 billion to close the year end period of 2020. For the quarter, operating profit totalled $1.29 billion (2019: $693.43 million).
Finance costs amounted to $1.472 billion (2019: $1.465 billion), a 1% decrease year over year. For the quarter, finance cost closed at $599.48 million compared to $606.29 million in the prior comparative quarter.
Profit before taxation increased to $3.64 billion in 2020, a 162% increase on $1.39 billion reported a year prior. Profit before taxation for the fourth quarter amounted to $710.04 million (2019: $99.34 million).
Seprod reported net profit from continuing operations of $3.17 billion (2019: $1.71 billion), an increase of 86% year over year. Net loss from discontinued operations totaled $69.84 million versus the net loss of $732.31 million reported in 2019. The company noted, “Profit from continuing operations for the year includes a one-off gain of J$762 million from the sale of a property that the Group was able to dispose of due to the consolidation and relocation of a distribution operation.”
As a result, Net profit for the period amounted to $3.10 billion, 218% over the $973.33 million reported in the prior year. For the quarter, net profit closed at $614.19 million (2019: $595.59 million).
Total comprehensive income closed at $3.02 billion (2019: $1.07 billion). For the quarter, total comprehensive income totalled $411.13 million (2019: $597.57 million).
Consequently, earnings per share (EPS) for the year ended December 31, 2020 amounted to $4.22 relative to $1.33 for the corresponding period in 2019. Earnings per share for the quarter amounted to $0.84 (2019: $0.81). The twelve-month trailing earnings per share amounted to $4.22. The number of shares used in our calculations amounted to 733,546,855 units. SEP last traded on February 9, 2021 at $67.61 with a corresponding P/E ratio of 16.01 times.
The Company highlighted that “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. We have gone above and beyond the health protocol guidelines of the Ministry of Health and Wellness to ensure the safety of everyone that has to interface with the business and to ensure supply continuity to our customers and consumers.”
Balance Sheet at a Glance:
As at December 31, 2020, the Company’s Total Assets increased by 2% to $37.14 billion from $36.50 billion a year ago. Non-current assets closed at $21.17 billion (2019: $22.07 billion) while current assets amounted to $15.97 billion (2019: $14.43 billion). The decrease in Non-current assets was mainly attributable to a 62% decrease in ‘Right of use assets’ which ended at $397.49 million (2019: $1.04 billion). Additionally, the increase in current assets was mainly due to an 11% increase in “Trade and Other Receivables” which amounted to $5.83 billion relative to the $5.24 billion reported twelve months prior.
Shareholders’ Equity as at December 31, 2020 amounted to $16.95 billion relative to $14.97 billion in 2019, indicating a 13% increase. This translated into a book value per share of $23.11 (2019: $23.41).
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