Date: September 09, 2019
Seprod yielded a commendable performance for the year ended December 31, 2018, reinforcing the Group’s firm footing to continue on its growth agenda. Revenues increased to $23.55 billion compared to $16.50 billion the prior year, a 43% increase. Moreover, profit was up 64% from $648 million to $1.4 billion in 2018. Chairman, Paul Scott, at the 2019 Annual General Meeting highlighted that, “Seprod purchased Facey Commodity Company Ltd during the year 2018,” however, only three months were attributed to the financial year 2018. The profits from Facey Commodity Company Ltd will be better reflected in 2019. In addition, Seprod now controls the distribution of majority of its own brands and will continue to invest in their distribution operation over the next few years. The company finished stage 1 of its new warehouse complex. The Serge processing and packing at the factory in St. Thomas was discontinued in 2018. Notably, the merger of the two dairy factories (St. Thomas and Bog Walk) will be completed in 2019. As such, Mr. Pandohie stated, “benefits will take effect in the second half of 2019.” Additionally, Mr. Pandohie added, “this merger will result in a “ first class dairy facility with the ability to contract pack for global leaders as well as have enough capacity to row our own business.” The company is confident that the dairy industry has the potential to expand and reduce imports. There will also be product expansion as well as growth in our export brands.
Mr. Pandohie highlighted that the company will be introducing some exciting innovations through Grain Mill as it has delivered tremendous benefits to households and manufacturers and is expected to have a positive impact on the farming communities throughout Jamaica.
Despite the positive performance, the Company has exited the sugar industry and the losses at Golden Grove Sugar Company Limited is being addressed as well as options explored to help to transition the business.
Lastly, the CEO, Richard Pandohie, concluded by stating Management will deliver revenue and operating profit growth by:
- Growth through innovation
- Consolidation of dairy business
- Exit from sugar manufacturing
- Driving distribution synergies
- Acquisition opportunities/ partnerships
- Driving export growth (expected to grow exports more than 25% annually)
- Attracting and investing in excellent talent
- Investing in employees
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