September 21, 2020
In 2015, Seprod’s Chairman stated his vision for the Company which was made a reality. Richard Pandohie, CEO and Managing Director of Seprod, announced following targets made a reality by the management team:
- Modern manufacturing facilities
- Value-added acquisitions
- A strong distribution pillows
- A company that was delivering above average value for the shareholders
- Allow employees the opportunity to become owners
The Managing Director noted, “We have done significant projects during this period, and in 2019 we closed some big-ticket projects by existing the hugely, unprofitably sugar manufacturing operations and completed the consolidation of the dairy business, making it the largest of its type in Jamaica manufacturing history.” He then mentioned that these initiatives have already started reflecting positively on the company performance, as shown in the first quarter report. Notably, Revenues increased by 6% to $9.14 billion ($8.59 billion), expenses increased by 2% to $1.78 billion (2019: $1.74 billion) and net profit from continuing operation increased by 44% to $647.34 million (2019: $450.63). Additionally, year-to-date SEPROD revenue increased year over year by 12% to $18.61 billion, expenses reduced by 3% to $4.61 billion, and net profit increased by 41% to $1.22 billion.
According to Mr. Pandohie, SEPROD focus is now on distribution to domestic and international consumers, as well as, warehousing and logistics efforts. “These areas are the life and blood of the organization connecting our factories, production, and the amazing brands of our partners to consumers,” he said. This Strategy focus is estimated to cost $2.5 billion as the first phase was completed in 2019, and the second phase is expected to complete in Q2 2021; the plan entails:
- Consolidated Warehousing
- Cost Competitive Distribution
- Dispersed Customer Footprint
Mr. Pandohie closed by acknowledging the shift to digitalization and e-commerce. Also he gave his assurance that SEPROD would continue to give back as they see the need to in this unprecedently time.
Touching on the Company’s regional footprint, Mr. Pandohie highlighted, “for too long Jamaican companies are acting like our domestic market is only Jamaica, CARICOM is where we should be looking at as our domestic market, and we will participate in all these markets in an aggressive way. We are already in Trinidad and Tobago, and it’s a very important market for the supligen brand. Also, for the first time since COVID19, we shipped fresh milk from Jamaica to Trinidad.” He also noted that the focus is not on the competitors; however, the aim is to replace imported goods with locally produced goods.
Additionally, in his response to another shareholder question about gluten-free productions, he noted that they are expanding along that line and, in fact, SEPROD is growing into the healthy food market.
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