August 13, 2024
Seprod Limited(SEP)
Unaudited financials for the six months ended June 30, 2024:
Seprod Limited (SEP) reported a 7% increase in turnover totaling $58.33 billion for the six months ended June 30, 2024, compared to $54.46 billion in the corresponding period last year. Turnover for the second quarter increased 9% to $29.74 billion compared to $27.39 billion for the comparable quarter of 2023. The increase in sales is attributed to the Company regaining its margarine market share, coupled with a headwind of improved export sales, which grew 27% over the period.
The cost of sales amounted to $43.40 billion (2023: $40.64 billion), an increase of 7% year over year. Consequently, gross profit increased by 8% to $14.93 billion compared to $13.82 billion for the six months ended June 30, 2023. The Company booked a gross profit of $7.43 billion for the second quarter versus $6.91 billion reported for the similar quarter of 2023.
Finance & Other Operating Income decreased by 12% to close at $397.36 million (2023: $453.83 million).
Administrative Expenses & other operating expenses increased by 9% from $9.74 billion in 2023 to $10.63 billion in the period under review. This expense increase is a strategic move by the company, allocating capital to improve its infrastructure and increase its packaging capacity. As a result, operating profit for the six months ended June 30, 2024, amounted to $4.70 billion, a 4% increase relative to $4.53 billion reported in 2023.
Finance Costs for the six months ending June 30, 2024, increased 22% to $1.76 billion (2023: $1.44 billion). The Company faced higher-than-expected costs to acquire foreign exchange over the period, which impacted the overall financial performance. These costs were primarily due to the volatility in the foreign exchange market and the Company’s increased international operations.
Share of Results of associate & joint venture for the six months ended June 30, 2024, amounted to $220.05 million, a 61% increase relative to $136.40 million reported in 2023. Share of associate & joint venture results for the second quarter amounted to $78.80 million (2023: $30.32 million). Profit Before Taxation totaled $3.16 billion, a 2% decrease from last year’s period. (2023: $3.23 billion).
Taxation for the six months ended June 30, 2024, amounted to $968.59 million, a 47% increase relative to $660.64 million reported in 2023. Taxation for the second quarter amounted to $454.49 million (2023: $264.59 million).
Net Profit from Continuing Operations for the six months ended June 30, 2024, decreased 15% to $2.19 billion (2023: $2.57 billion). The major contributor to the Group shortfall was due to its Trinidad subsidiary performance. The Bryden Group’s revenues increased by 11% over the comparative period; however, its net profit declined by 44% primarily due to expiration of one-off benefits which the company had in 2023. Profit/(loss) from discontinued operations for the six months amounted to $41.15 million, a 79% increase from the $23.03 million reported in 2023. For the second quarter, Profit from discontinued operations was $16.76 million (2023: $14.28 million).
Net Profit attributable to shareholders for the six months ended June 30, 2024, amounted to $1.76 billion, a 7% decrease relative to $1.89 billion reported in 2023. For the second quarter, net Profit attributable to shareholders was $797.42 million (2023: $904.79 million).
Consequently, Earnings Per Share for the six months amounted to $2. (204023: EPS: $2.57), while Earnings Per Share for the quarter totaled $1.09 (2023: EPS: $1.23). The twelve-month trailing EPS was $3.78, and the number of shares used in these calculations was 733,546,855.
Notably, SEP’s stock closed the trading period on August 12, 2024, at $83.72, with a corresponding P/E ratio of 22.14x.
Balance Sheet Highlights:
The Company’s assets totaled $105.27 billion (2023: $91.27 billion). The astronomical increase in the Company’s total asset base is attributed to the 29% year-over-year increase in the “Receivables.”, ending the period at $25.14 billion (2023: $19.40 billion), a 12% year-over-year increase in “Property plant and equipment” ending the period at $23.47 billion (2023: $20.88 billion) and “Intangibles Assets” ended the period at $13.69 billion (2023: $13.53 billion).
Shareholder’s equity was $29.50 billion (2023: $29.95 billion), representing a strong book value per share of $40.21 (2023: $35.75).
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