September 20, 2021

For the financial year under review, Seprod Limited 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. Net profit for the period amounted to $3.10 billion, 218% over the $973.33 million reported in the prior year. The Company’s Total Assets increased by 2% to $37.14 billion from $36.50 billion in the prior year, while Shareholders’ Equity as at December 31, 2020 amounted to $16.95 billion relative to $14.97 billion in 2019, indicating a 13% increase. For the six months ended June 30, 2021, revenue totalled $19.83 billion compared to the $18.61 billion recorded for the same period of the prior financial year; this represents a 7% increase year over year conversely the Net profit contracted by 7% to end at $1.21 billion relative to the $1.30 billion reported a year prior.

According to the Group’s Chief Executive Officer, Mr Richard Pandohie, “The Group delivered it’s best performance in 2020 resulting from a combination of years of decisive actions which have set the benchmark for future expectations. The 2020 results have enabled the Group to invest in a complete overhaul of its distribution pillar. This provides the Group with a significant footprint for local and export expansion, the project which was schedule to go live at the end of Q3 2021 will instead go live at the end of Q1 2022 due to supply chain disruption which affected material supply.” Additionally, “The distribution pillar of the organization is very diverse, we are heavy into food, but we are also an important player in the health eco system through our pharmaceutical business. We are the partner for Pfizer and are immensely proud of the behind-the-scenes logistic support that we have played in enabling the Ministry of Health and Wellness to ensure that this vaccination option is available to our population.”

Mr Pandohie also added, “The year 2021 has been challenging, the global supply chain disruptions have affected raw and packaging material supplies for the factories. The Group have also faced supply constraints for key finished goods from some of our most important principals. Additionally, the prices for key commodities have skyrocketed to multiyear highs, which have been compounded by shipping cost increases of more than 300%. The impact on cashflow is significant and we are unable to pass on this level of increase to the consumers during this period where disposable incomes are under pressure. We anticipate that these challenges will continue for the rest of the year and into Q1 2022, however, we are cautiously hopeful that as the global economy reopen in a balanced way some of these costs will reset to more reasonable levels.”

According to Mr Pandohie, “Year to date export as a percentage of manufacturing is 10%, however the Group continues to look for opportunities to meet the export target.” Chairman Mr P.B. Scott added, “Seprod’s future is in export hence the Group is mentally setting itself up to facilitate continued sustainable export growth in markets outside of Jamaica.”

Outlook:

• Strengthen the Group’s workforce
• Expand distribution footprint globally
• Embed more technology into daily operation
• Strengthen and further diversify the Group’s supply chain
• Strong organic growth through a robust innovation pipeline

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