Richard Pandohie Group Chief Executive Officer of the Seprod Group is crediting a number of key strategic initiatives as contributing to the groups improved performance for 2016 including:

1. Reduced losses at the sugar operations and benefits reaped as a result of restructuring conducted in 2015. This was supported by improvement in weather conditions positively impacting the agriculture business in the latter part of the year, The company spent over $700 million in 2016 to upgrade its factories and invest in an irrigation system at the dairy farms bringing the total capital expenditure over the last two (2) years to over $1.4 billion. These investments have set a solid platform to drive productivity, improve capability to deliver exciting new products.

2. Excellent returns on their investment portfolio.

Paul. B. Scott in his Chairman’s report indicated that the earnings per share growth is sustainable and is expected to continue in 2017.  “The dividend payout however, should be taken into context. Seprod has increased its dividend annually for 10 years and, on a normalized basis, we expect this to continue in line with the growth in earnings per share. Last year we had a one-off gain from the sale of our equities portfolio. We decided to return this capital from the gain to the shareholders, resulting in an additional $2.28 in dividends, in excess of the $0.97 we had planned for the year. We expect that we will work hard to grow our ordinary dividends from the base of the $0.97, on the back of increased earnings, going forward.”

3. A quantum leap in the size of the export business. In 2016, the Seprod Group exported the first shipment of sugar to the international market from its Golden Grove Sugar operations in St. Thomas, Jamaica. This shipment comprised 2,500 bags or 125,000kg of Golden Grove branded sugar. Today, Seprod’s Golden Grove packaged sugar is the most widely exported brand of local sugar.

4. A raft of product innovations capitalizing on the strength of their brands including the introduction of Heavy Cream, Evaporated Milk, Condensed Milk, Lactose Free Milk and Consumer Packaged Sugar.

Commenting on the performance of the company in their just released 2016 annual report, Mr. Pandohie reported that for 2016, the company realised a $2 billion or 15% rise in revenue to $15.7 billion, an operating profit of $1.6 billion, representing an increase of 76% over 2015 and Net profit after taxation increasing by 51% to $875 million.

Shareholders benefited from improved earnings per share (EPS) of $2.11 up from $1.68 in 2015 an increase of $0.43 or 25.6%. Dividend per share was $3.23, was also up from $0.95, an increase of $2.28 or 240%.

A dividend of Sixty cents ($0.60) per ordinary stock unit to stockholders on record as at 21st June, 2016 was paid on 8th July, 2016. A further dividend of Two Dollars and Sixty-three cents ($2.63) per ordinary stock unit to stockholders on record as at 18th November, 2016 was paid on 28th November, 2016. The Directors are not recommending any further payment of dividends for 2016.

Looking forward into 2017 and beyond Mr. Pandohie indicated that he along with his Management will deliver revenue and operating profit growth in 2017 by:

1. Continuing to innovate at pace and scale by deepening the connection with our consumers thus generating meaningful insights that will be used to build on our innovation platform.
2. Partnering with dairy farmers to increase milk production.
3. Achieving break-even in the sugar operations.
4. Looking for acquisition opportunities and partnerships.
5. Driving export growth as expectation are to grow exports in excess of 50% each year.
6. Attracting and investing in talented people – people endowed with the right skills, as well as the agility and passion to perform.
7. Increasing our distribution footprint across the country and across all channels to expand our consumer base.
8. Creating a foundation of operational excellence to drive productivity in every facet of the operation.
9. Engaging in contract manufacturing opportunities.
10. Giving back to the communities via the SEPROD Foundation

Seprod Groups 78th AGM is now set for July 10, 2017 at the Jamaica Pegasus Hotel, Knutsford Boulevard, Kingston 5 at 11:00 a.m.
To view full report click HERE.