CPJ impacts Seprod as results consolidated, PB Scott bets on Christmas and Carnival for year-end flourish

 


Board Chairman P.B Scott outlines that for the nine months ended September 2023, Seprod Group Limited reported net profit of $2.97 billion, a decrease of $551 million or 16 per cent versus the corresponding period in 2023.


-P.B Scott. GENAC Photograph.

Scott attributed the less than stellar performance to "a slowness in the economy post the Beryl hurricane in July plus the USA travel advisory to Jamaica that led to a material reduction in the hotels’ occupancy rates."

Effective June 1, 2021, Seprod acquired 60 per cent of the shareholding of AS Bryden which in turn holds a stake in CPJ, whose results were consolidated in the financials for Q3. CPJ primarily services the hotel sector.

Effective 9 July 2024, A.S. Bryden & Sons Holdings Limited (ASBH) acquired 44 .8 per cent of the share capital of Caribbean Producers (Jamaica) Limited (CPJ), a leading food and beverage distributor for major global brands with a focus on serving hotels and resorts in Jamaica and St. Lucia.

Richard Pandohie, chairman of Caribbean Producers Jamaica Limited, CPJ, is touting regional expansion of the business. The company also intends to increase its stake in CPJ, CPJ was founded by partners Mark Hart and Tom Tyler, who were its co-chairmen prior to the sale.

For the three months ended 30 September 2024 (Q3), Chairman PB Scott outlined that Seprod Group achieved revenues of $35.10 billion, an increase of $7.35 billion (27 per cent ) over the corresponding period in 2023. Gross profit closed at $9.80 billion, an increase of $1.76 billion ( per cent ) above the corresponding period in 2023.

The net profit was $828 million, a decrease of $154 million (16 per cent ) versus the corresponding period in 2023 when profits were boosted due to a non-recurring gain of $363 million on net profit and $442 million on other comprehensive income in respect of the restructuring of A.S. Bryden’s post-employment medical plan.

For the nine months ended 30 September 2024 (Q3 year-to-date), the Group achieved revenues of $93.43 billion, an increase of $11.23 billion (14 per cent) over the corresponding period in 2023. Gross profit closed at $24.72 billion, an increase of $3.86 billion (19 per cent ) above the corresponding period in 2023.

Regardless of the dip in net profit, Scott stated that the Group, however, anticipates a strong last quarter performance from ASBH as the company enters the Christmas season and Carnival band launches.”

AS Bryden, a Trinidad company, was acquired by CPJ in 2022 which company disclosed that the purchased on a going concern basis from owners who were principally concerned with succession planning.

AS Bryden earlier reported rising revenues.

CPJ provided no profit uplift from CPJ in Seprod’s third quarter. Scott commented, “this will turn around in Q4 as the winter tourist season gets going in Jamaica, with the hotels already reporting stronger booking than last quarter experience.”

He asserted that Seprod’s export is at 20 up so far in 2024 “and that will close the year even higher. Seprod’s Jamaica business is banking on overcoming the sluggishness in the retail space, coupled with reducing cost and improving productivity.”

Scott said, “ As we look to the last quarter of the year, we remain optimistic that we will produce a strong performance that will enable us to partially close the YTD gaps.

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