Written by imanuel on February 27, 2023

Seprod earnings boosted by AS Bryden acquisition

The acquisition of Trinidadian company AS Bryden and Sons has started to reflect positively on the bottom line of manufacturing and distribution conglomerate Seprod Limited, which, at the end of December 2022, significantly increased quarterly earnings to $1.2 billion — 314 per cent above the previous year's period.

Out-turns in earnings for the full year also jumped 93 per cent above that of 2021 to total $3.8 billion. This while consolidated revenues for the fourth quarter grew to $28 billion, up 122 per cent or $15.5 billion.

For the 12 months revenues was approximately $80 billion or $35.8 billion more than in 2021.

"The Q4 2022 results for the Seprod Group include Seprod's share of the Bryden Group's results, where no such results would have been in the comparative periods of 2021. The increase in revenue was driven by the acquisition of the Bryden Group, 25 per cent increase in export sales, and the addition of new product lines," an interim report to shareholders signed by Chairman PB Scott and Seprod Group Chief Executive officer (CEO) Richard Pandohie stated.

"For the full year, there was also the effect of pandemic-induced price increases, which the company has begun to reverse as lower price commodities, shipping cost, etc, begin to work their way into our inventory replacement cost," the report also stated.

An unwinding of extraordinary warehousing and logistics cost from the use of third-party warehouses owing to the destruction of its main logistics centre by a fire in 2021 has also added to the increased earnings for the company especially now as it transitions to the new distribution campus at Marcus Garvey Drive.

AS Bryden is an internationally recognised distributor of premium beverages, food and grocery as well as hardware and household supplies. At the time of Seprod's acquisition, which was completed in June 2022, an estimation of the combined revenues of both companies totalled over US$500 million, or just about $76 billion.

Now merged into one, both companies have secured a large footprint in several mainland countries and in recent times, has also moved to build out an even stronger presence across Caricom. Plans are currently underway to list AS Bryden on both the Jamaica and Trinidad and Tobago stock exchanges.

Source: Jamaica Observer

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