Seprod sees risks that could impact the price of raw material
Seprod CEO Richard Pandohie
The management of Seprod Group has noted that risks in the global supply chain could impact raw material availability and prices.
These risks could also impact disposable income pressure on consumers and the availability of workers as the community spread of the coronavirus intensifies, Seprod said in notes attached to its financials for the nine months ended September 30, 2020.
Seprod is nonetheless projecting “solid Q4 results to close out a strong 2020 performance.”
For the three months ended September 30, 2020, the manufacturing and distribution company recorded revenues of 10.05 billion, an increase of $1.86 billion over the corresponding period of 2019.
Seprod also reported a net profit from continuing operations of $1.31 billion, an increase of $1.03 billion over the corresponding period in 2019.
The increase in the quarter’s profit was due largely to a one-off gain of $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.
Seprod CEO Richard Pandohie indicated that this property is the ISL warehouse at 105-107 Marcus Garvey Drive.
Increased earnings were also due to deliberate efforts made in prior years to strengthen business fundamentals.
These efforts, it was outlined, included consolidating the dairy factories, increasing exports and expanding the distribution footprint through the acquisition of the Facey Consumer business.
Seprod Group exited loss-making sugar manufacturing operation in July 2019.
As required by accounting standards, the losses from this discontinued operation for the three months ended September 30, 2020, are reported as $31 million for the quarter.
This compares to losses of $460 million (inclusive of a $331 million write-down in assets following the closure of the factory) for the corresponding period in 2019.
Revenues from continuing operations for the nine months ended September 30, 2020, amounted to $28.66 billion, an increase of $3.86 billion or 16 per cent over the corresponding period in 2019.
This translated to a net profit from continuing operations of $2.53 billion, an increase of $1.37 billion or 117 per cent over the corresponding period in 2019.
The losses from the discontinued sugar manufacturing operation for the nine months ended September 2020 amounted to $47 million. This compares to losses of J$786 million for the corresponding period in 2019.
Management said the company has 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.