Seprod profit rises 16%, group trims debt

Seprod Limited reported net profit of $688 million for the second quarter ended June 30, 2026, a 16 per cent increase over the year-earlier levels, as disciplined expense management compensated for a three per cent decline in revenue caused by lingering disruptions to Jamaica’s tourism sector from Hurricane Melissa.

The board said the revenue shortfall “primarily reflected lower demand from the Jamaica tourism sector, as several hotels continued to experience reduced room availability or delayed reopening following the passage of Hurricane Melissa”.

Quarterly revenue fell $970 million to $36.5 billion, while gross profit narrowed to $9.75 billion from $10.1 billion as the softer top line was compounded by elevated energy prices driven by geopolitical developments and rising raw material costs. Operating profit nonetheless edged up six per cent to $2.35 billion as other operating expenses were cut by six per cent, to $7.7 billion.

During the quarter, Seprod paid $812.8 million to retire preference shares which eliminated a dividend obligation to non-controlling holders; that cost now falls largely away.

Capital expenditure for the half-year collapsed 77 per cent to $371 million from $1.62 billion a year earlier — a pullback from last year’s manufacturing plant and distribution buildout. The spending reduction, however, freed up cash that the group directed towards balance sheet repair.

“Group cash flow remains robust, and this has allowed us to reduce our debt by over $3 billion and to declare dividends of $551 million during the period,” the board said. Long-term loans were cut by $3.09 billion, while cash provided by operating activities nearly tripled to $4.19 billion from $1.58 billion a year earlier — driven in part by a swing in receivables collection.

For the six months ended June 30, net profit increased 62 per cent to $2.34 billion from $1.44 billion. However, stripping out the IBL disposal gain, underlying half-year profit was broadly flat year-over-year.

Half-year revenue declined three per cent to $72.93 billion. Export sales contributed $2.86 billion, partially offsetting softer domestic demand. The distribution segment accounted for 91 per cent of external revenue at $66.5 billion, while manufacturing contributed $6.45 billion.

Capital stood at $50.5 billion, up from $49.71 billion at December 2025. Total assets were broadly flat year-over-year at $137.8 billion.

business@gleanerjm.com