The full integration of its AS Bryden subsidiary continued to drive growth for manufacturing and distribution giant Seprod Limited which saw a near doubling of revenues in its last financial year.
At the end of December 2022, total sales for the group soared to $78 billion — $35 billion more or near 80 per cent above that of the prior year. Profit for the year also climbed $925 million or 46 per cent to $2.9 billion — both reflecting record out-turns in the last 10 years.
"The key driver for the revenue increase vis-à-vis 2021 was the acquisition of the Bryden Group, as their numbers would not have existed in Seprod's financials for the prior year. The revenue growth was also enhanced by a 20 per cent increase in export sales along with the addition of new product lines," CEO Richard Pandohie told the Jamaica Observer.
He said that with a number of strategies now being engaged to further push growth for the group, he expects its performance going forward to become even more robust driven by a number of factors including exports, value creating acquisitions and deepened partnerships regionally.
"Export is a major focus for the group, up to the end of July, we were in excess of 40 per cent growth versus 2022. We continue to look for deeper penetration in the traditional markets, and also for new markets. Of course, another key driver is to develop new products that will excite consumers in the overseas markets," Pandohie said.
Spurred by increased innovation, the company is also now expecting that the the roll-out of new products including its new Supligen max beverage and Go nuts peanut products being distributed by its International Biscuit Limited (IBL) subsidiary, through the Butterkist brand, will further up the value creation for its business as it expands the customer base.
The new Supligen max launched in April is packaged in a metallic and gold tin and is a combination of the original vanilla flavoured mixed with stout and white overproof rum (5 per cent alcohol by volume). Head of group marketing Debbian Spence-Minott said the product "has opened the doors to a new consumer segment for the brand."
The company has exited all the spaces it had rented after the 2021 fire, which gutted one of its large warehouses, and now saving it over $200 million in rental costs. Pandohie said this is largely supported by the partial readiness of its mega distribution campus which remains a work in progress, with investments aligned to the urbanisation and revival of the downtown Kingston area.
The CEO, while noting that even as some pandemic-induced challenges and increased expenses continue to impact aspects of operation, said the company remains even more nimble as it transitions to becoming a true regional player. To this end, he indicated that plans to bring AS Bryden to two markets were now inching closer.
"We are behind on our initial objective for first quarter 2023 listing on the JSE but we are now confident that this will be achieved before this year end. It is also the intention to list on the Trinidad Stock Exchange," Pandohie said to the Caribbean Business Report.
"The union of Seprod and the Bryden's Group has created a regional platform that will enable sustainable value creation for our principals, shareholders, and the people of Caricom. The amalgamated entity will see combined annual revenues exceeding US$650 million in 2023 with a robust growth trajectory for future years," he further outlined in the company's recently published annual report.
Source: Jamaica Observer
Sep 08, 2023
