Seprod to expand dairy footprint, establishes new distribution hub in Guyana

 

Seprod Limited indicates that investment made in the company’s dairy segment is expected to result in a greater ability to scale production and increase distribution.

Chairman PB Scott stated in the company’s new annual report the  Dairy pillar which consists of a dairy processing plant and  farms in St. Thomas, Jamaica are currently  leaders in the region in production of milk, flavoured milk drinks, condensed milk, evaporated milk, ice cream mixes and juices.

The processing facility in Bog Walk received major investment in the form of new lines to facilitate increased production of milk and juices, and new packaging formats.

The Chairman said, “At time of writing, this project is being completed and we expect increased production in the second half of 2025 as a result of these initiatives.”

Seprod  further extended its distribution platform in 2024, which is its greatest source of revenue. During the year, the group acquired 80 per cent of Caribbean Producers Jamaica Limited (CPJ) in Jamaica through A.S. Brydens, and Stansfeld Scott in Barbados.

Chairman P.B. Scott stated. “These developments, combined with the launch of ASB Guyana, gave us the capability to distribute premium beverages in Barbados, St. Lucia, Guyana, and Jamaica. We expect to build on this foundation during the coming years as we grow that business regionally.

“ With the purchase of CPJ, we also gained a strong market position in the supply of products to the hotel trade in Jamaica and St. Lucia. This has traditionally been an area of our business in which we have not had scale despite the tremendous growth over the years.”

Seprod Limited (SEP) reported a 19 per cent increase in revenue, totaling $133.08 billion for the twelve months ended December 31, 2024, compared to $112.15 billion in the corresponding period last year. Revenue for the fourth quarter increased by 29 per cent, closing at $39.65 billion compared to $30.84 billion for the comparable quarter of 2023.

 

Seprod has three pillars: Ingredients, Dairy and Distribution. The chairman stated, “Our intent is to build scale by growing across our region in each of these areas. Our objective in doing so is to eliminate the inefficiencies that exist among the many small fragmented markets that is the Caribbean.

The ingredients pillar consists of an oils and fats business, producing margarine, shortening and vegetable oil, as well as a flour and corn mill, essentially the original business of Seprod.

During the year, both businesses performed to expectation and we expect that this will continue in the new year as we invest in energy solutions and other efficiency initiatives to improve competitiveness and drive volumes.

Scott noted, “Significant challenges facing us that clearly are not within our control. Our export business may be affected by the new wave of tariffs. The availability of US$ in some of our markets is also a concern. Trinidad had hoped that flows from the Dragon Field would have alleviated this situation in a few years. The future of that project at this time is unknown (at least to your management). We will have to be agile and laser focused to ensure that any fall out is mitigated.”

Source: Jamaica Stock Exchange.

Photo: Seprod Chairman PB Scott.

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