Manufacturing and distribution conglomerate Seprod Limited at the end of its six-month period ended June recovered earnings following some downturns experienced during the similar period of last year.
At the end of the half-year period, revenues grew by 40 per cent to total almost $28 billion while profits increased to $1.6 billion â€” 31 per cent above the prior year's period. The bulk of these earnings were achieved during the April to June period or second-quarter performance which saw revenues accounting for approximately $16 billion of the total accompanied by profits of $984 million.
"The percentage growth in net profit is less than that of the revenue growth as the company continues to absorb some of the cost increases, rather than passing through the full extent of these cost increases to consumers," the company's director indicated in notes affixed to the latest financials.
The company credited the sharp rise in revenues to the performance of its AS Bryden & Sons subsidiary, in which it acquired a majority stake during the year. The company at the onset of buying into the Trinidad-based company had said that it was hoping to double its sales pending completion of the acquisition. At present Seprod's revenue averages about US$290 million per annum while AS Bryden's revenues total US$240 million.
"Robust export growth, improved product mix, improved production of fresh milk at the dairy farms, launch of new snack line and price increases," were also cited by the directors as other drivers of revenues during the half-year period.
The company said that despite the continued challenges in the global environment, it believes that a peak in the price of some key raw materials could create the potential for a retreat in cost by the end of the last quarter.
Richard Pandohie, chief executive officer (CEO) of the Seprod Group, recently speaking with the Jamaica Observer had said that in light of falling prices on the global market, customers should demand to see a reduction in the price of goods by next month.
"The same way we all reacted and move prices up, we should also react with the same level of urgency to move prices down and we want to do that because consumers are struggling," he said in cautioning fellow producers.