Written by Megan Defreitas on October 3, 2023

Seprod eyes US$1 billion in sales by next three years

Focused on its target to double exports in the next two years, manufacturing and distribution conglomerate Seprod Limited said it is also pushing to reach US$1 billion in sales.

Describing the move as ambitious, CEO Richard Pandohie said he believes it is very achievable and well within reach if the company continues on its current growth trajectory.

"A few years ago Seprod was doing revenues of US$250 million. This year we had said that we would have been up to about US$550 million, but it seems more likely that we are going to end closer to US$650 million. Within the next three years, I would, however, want for us to hit US$1 billion," he told the Jamaica Observer following the company's 84th annual general meeting held at the Terra Nova Hotel in Kingston on Wednesday.

At the targeted US$1-billion mark, sales when converted to local currency would amount to over $150 billion annually, almost 50 per cent more than the company's current sales which totalled $78 billion in 2022. Following the full integration of AS Bryden, which it acquired last year, group revenues at the end of its six-month period corresponding to June 2023 stood at $54.5 billion - 96 per cent above that of the similar period of the prior year.

Shareholders in attendance at Seprod's 84th AGM held at the Terra Nova Hotel on September 27, 2023.

The company, which continues to focus on exports as a key strategic pillar, said it remains bullish on plans to export at least 30 per cent of all goods that it manufactures, including its own products and third-party brands, by 2025. With exports now up by more than 50 per cent this year, and that as a portion of manufacturing currently tracking at 20 per cent, Pandohie said he is optimistic that this will further increase with the AS Bryden integration.

"AS Bryden will begin to impact our export numbers by about October of this year and we expect it to make a significant difference," he said, noting the reopening of markets, increased co-manufacturing opportunities and entry into new markets among key drivers responsible for the company's current export growth.

"For us to grow we have to have a very focused export business and building that regional platform helps us to accelerate and makes it easier in doing that," Chairman PB Scott further said.

The Trinidad-based AS Bryden company, which is ranked in similar value to Seprod, has its core business in the food, beverage and pharmaceutical divisions with other operations in the household and industrial supplies and servicing market. Statements from the last annual report indicated that the company was purchased by Seprod for over TT$312 million or just about $7.1 billion.

CEO for the Seprod Group Richard Pandohie delivers his report at the company's AGM on Wednesday

Looking to carve out further value from the large subsidiary and to increase shareholder value, the company's directors had indicated that plans are in train to have it listed on the Jamaica Stock Exchange later this year and sometime shortly after in the Trinidad market.

Securing shareholder approval in passing a resolution to increase the company's share capital from 780 million to one billion, Scott said the intention is to make ready all options geared towards strengthening the base of the company, positioning it to take advantage of future growth opportunities, including new acquisitions.

"What we want to do is to look at the options with regards to our capital structure and have our options open. We can either raise money if we choose to do so among a number of other things. We have a number of plans for the next 12 months, so we value having this level of optionality," Scott said.

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