FOLLOWING rising expenses and declines in both its manufacturing and distribution segments, Seprod Limited posted a 27 per cent decline in net profit for the three months ended September 2010 when compared to the corresponding period of 2009.

The Group, which comprises Caribbean Products Company Limited, International Biscuits Limited, Serge Island Dairies and Industrial Sales Limited, among other subsidiaries, posted third-quarter net profit of J$218.5 million, $80 million less than that recorded in the corresponding quarter of 2009.

The performance was informed by an increase in costs and a reduction in revenue and earnings from its business segments. At the end of September 2010, overall revenue declined three per cent to J$2.1 billion, while direct expenses jumped 14 per cent to J$1.8 billion.

Selling and administrative expenses also increased 22 and nine per cent, respectively, while finance costs grew to J$7 million, up 23 per cent over the similar quarter of 2009.

However, a 58 per cent spike in foreign exchange gains, which returned $57.7 million for the quarter, reduced the strain brought about by the growing expenses to bring operating profit to within 17 per cent of prior year’s quarter.

The performance of the business segments was no less tenuous. While the manufacturing segment, traditionally the star of the group, recorded 16.5 per cent more overall revenues for the 2010 quarter, its results fell 33 per cent lower than in the corresponding quarter of 2009.

Manufacturing returned just $881 million for the period under review, compared to the $1.3 billion it recorded in 2009. Distribution saw a 23 per cent drop in results, down 47 million at the 2010 period from the 200 million recorded at the similar period in 2009.

Seprod employs a direct labour force of over 370 persons, with varying levels of support labour. The Group manufactures and distributes edible oils and fats, such as cooking oil, margarine and shortening, corn products and other household consumer products.