SEPROD Limited’s first-quarter profit nearly doubled after the sale of International Biscuits Limited generated a major one-time gain, even as weaker consumer demand in Jamaica and Trinidad & Tobago weighed on several of the group’s operating businesses.

The manufacturing and distribution conglomerate sold the business on February 28 as it focuses on de-leveraging or reducing the debt in its group structure. According to Seprod’s cash flow statement, it recorded a $1.71-billion net cash inflow on the disposal of IBL.

“During the period, the group divested one of its subsidiaries, International Biscuits Limited (IBL). This transaction represented a deliberate and strategic step in aligning the portfolio with our long-term growth priorities,” Seprod’s first-quarter report (Q1) stated.

Seprod recognised a $20.62-million loss from discontinued operations related to IBL in Q1 2026. Based on the $921.86-million gain on disposal, the buyers appear to have paid at least $784.20 million above the net asset value of IBL. The company had $913.96 million in net assets as of December 2024.

The conglomerate reported a consolidated net profit of $1.65 billion for the period ending March 31 — a 95 per cent improvement over the $849.92 million in the prior period. However, the improved earnings were not necessarily attributable to increased demand for its products but rather, a one-time $921.86-million gain on the disposal of IBL. Without the one-time gain Seprod’s consolidated net profit would have been $730.83 million.

Seprod’s consolidated revenue was down three per cent to $36.42 billion in Q1 due to the continued impact of Hurricane Melissa on the HORECA (Hotels, Restaurants, and Cafés or Catering) channel of business. Its 80 per cent-controlled subsidiary A.S. Bryden & Sons Holdings Limited (ASBH) reported a six per cent decline in consolidated revenue to US$141.19 million ($22.13 billion), with consolidated net profit moving from US$3.23 million to US$67,000.

One of the reasons for the drop in ASBH’s profitability is also related to its 79.99 per cent-controlled subsidiary Caribbean Producers (Jamaica) Limited (CPJ). CPJ saw its consolidated revenue drop 28 per cent to US$33.13 million, and swung from a consolidated net profit of US$1.81 million to a consolidated net loss of US$1.17 million during the period.

“These results were impacted by a combination of external and internal factors, including the continued effect of increased alcohol duties in Trinidad & Tobago, softer consumer demand in selected categories, disruptions within Jamaica’s hospitality and tourism channels following Hurricane Melissa, and the elevated cost structure associated with supporting the group’s regional expansion and integration initiatives,” ASBH stated in its Q1 report. The weaker operating performance across parts of the group comes as Seprod continues trying to streamline its portfolio, reduce debt, and improve efficiency amid softer regional consumer demand.

Despite weaker operating conditions across parts of the group, Seprod said it remains optimistic about improving efficiency and overall group performance. It highlighted that its gross profit margin declined from 26.73 per cent to 26.64 per cent, despite increased input costs and lower revenue. The company also pointed to operating expenses rising by one per cent, or $90 million, as a reflection of management’s efforts to contain costs. Seprod’s net profit attributable to shareholders moved from $548.40 million to $1.67 billion.

“We remain focused on margin resilience, cash generation, cost optimisation, disciplined growth, and improving return on equity (ROE). These initiatives are foundational to building a more efficient, integrated, and performance-driven organisation,” stated Seprod’s Q1 report signed by Chairman Paul B Scott and Chief Executive Officer Richard Pandohie.

Seprod’s consolidated asset base declined five per cent during the quarter to $137.44 billion, with its current asset base at $75.15 billion. Seprod purchased 5.29 million ASBH6.00 preference shares during the quarter for US$5.29 million ($812.81 million), as Ambergate Limited and Fairchild Limited reduced their positions.

Total liabilities declined nine per cent to $86.78 billion as payables and the current portion of long-term liabilities declined. Seprod’s consolidated equity was $50.66 billion, with $39.94 billion attributable to shareholders. Seprod’s audited financials are currently delayed due to ASBH’s audited financials not being complete. ASBH indicated that it expects to submit its financials by May 31.

Seprod’s stock price closed Monday at $82.43, which leaves the stock down two per cent in 2026 with a market capitalisation of $75.09 billion. Seprod declared a $0.605 dividend, totalling $551.12 million, to be paid on June 5 to shareholders on record as of May 15. Although this is the same dividend per share as last year, the payment is larger than the $443.80 million paid in 2025. Seprod executed a share swap in July 2025 which saw its stake in ASBH rise to 80 per cent after issuing 177,398,683 new ordinary shares.