ALTHOUGH Seprod saw a 26 per cent uplift in consolidated revenue to $37.48 billion from its recent acquisitions, the ongoing integration expenses from those acquisitions pushed its consolidated net profit down 37 per cent from $941.48 million to $591.52 million for its second quarter.

The manufacturing and distribution conglomerate acquired a majority stake in Caribbean Producers (Jamaica) Limited (CPJ) in July 2024 and Stansfield Scott (Barbados) Limited in March 2024, through its Trinidadian subsidiary A.S. Bryden & Sons Holdings Limited (ASBH). These acquisitions allowed for Seprod’s revenue to improve year on year as it consolidated both businesses during the period.

However, the group’s other operating expenses grew 53 per cent, from $5.31 billion to $8.16 billion during Q2 (April to June), which was largely attributed to the CPJ acquisition. CPJ’s expenses increased during the period due to brand development activities, higher staff costs to support ongoing projects, and its ongoing manufacturing plant upgrade.

These higher expenses resulted in Seprod’s operating profit declining four per cent to $2.21 billion. The ongoing acquisitions meant to support the buildout of its regional platform were partially funded by debt, which pushed financing costs up 29 per cent to $1.03 billion. Even with lower taxes, Seprod’s net profit attributable to shareholders decreased 52 per cent to $382.76 million.

For the overall six months, Seprod’s consolidated revenue increased 29 per cent to $75.18 billion, which puts it on track to achieve its US$1-billion revenue target by 2026. Seprod’s segment report revealed that whilst manufacturing revenue remained flat at $17.17 billion, distribution revenue grew by a third from $51.53 billion to $68.79 billion, which is largely attributed to its recent acquisitions through ASBH.

Despite the continued uplift in revenue the consolidation and expansion activities for its new subsidiaries resulted in its operating profit decreasing by two per cent to $4.60 billion. Higher finance costs and taxes pushed Seprod’s consolidated net profit down 33 per cent to $1.44 billion, with $931.17 million attributed to shareholders.

Seprod’s consolidated asset base improved to $137.08 billion with $61.42 billion of non-current assets and current assets of $75.65 billion, with $33.82 billion in inventories and $34.39 billion in receivables. Total liabilities and equity attributable to shareholders were $89.61 billion and $30.55 billion, respectively.

Seprod’s stock price closed Friday at $82.08, which leaves the stock down six per cent in 2025 with a market capitalisation of $74.77 billion. Seprod recently issued 177,398,683 new ordinary shares as consideration for its recent takeover bid of ASBH. For every 1,000 shares of ASBH which were tendered, that shareholder received 396.43 new ordinary shares in Seprod. Seprod acquired 447,491,012 ordinary shares of ASBH to bring its interest to 1,199,151,028 ordinary shares or 79.98 per cent. The new Seprod shares were issued by July 7 on the JSE.

The ASBH prospectus also revealed the interests of different executives and directors changed after the takeover bid. Seprod CEO Richard Pandohie’s interest changed by 63,281,815 ordinary shares, which translates to 25,086,810 new Seprod shares. Director Nicholas Scott and Seprod executive Damion Dodd also saw their ASBH interests change by 18,487,978 ordinary shares and 4,687,542 ordinary shares, respectively. Michael Conyers, executive deputy chairman of ASBH, saw his interest remain unchanged at 90,103,014 ordinary shares or six per cent.

ASBH listed by introduction on the TTSE on August 29, with its ordinary shares listing at TT$1.15 while its preference shares listed at US$0.97. The listing price was equivalent to ASBH’s closing price on the JSE on August 27. ASBH listed by introduction on the JSE in November 2023, when its ordinary shares were listed at $22.50 while its preference shares were listed at US$1.00.

“The Seprod Group anticipates that the strategic decisions taken during the quarter — particularly those focused on cost management, operational efficiency, and deepening integration across our regional operations to unlock synergies — will position the company to deliver improved margins and a sustained recovery in profitability in the second half of the year and beyond,” stated the report signed by Chairman Paul B Scott and CEO Pandohie.