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Seprod profits down marginally

Published:Monday | March 26, 2012 | 12:00 AM

Despite posting an increase in revenues, upward movement in expenses resulted in a decline in net profits recorded by manufacturer and distributor Seprod Limited at the end of its financial year December 2011.

Net profits at the end of the reporting period was J$767 million, representing a 7.6 per cent drop from the J$830 million it recorded for the corresponding period in 2010.

However, revenues grew by 22 per cent to J$12 billion, but were not enough to curtail increased expenses, which resulted in a decrease in the companys bottom-line.

For the year, selling expenses increase to J$339 million from 4294 million, administrative costs grew to J$1.2 billion from J$1.1 billion, while finance costs rose to J$62 million compared to J$35.9 million the previous year.

Manufacturing contributed J$10.9 million to the group's revenue, while distribution accounted for J$4.4 million.

Both segments reflected an improvement over earnings for 2010.

Seprods re-investment in the Facey Group amounts to US$14 million. The alliance, Seprod said, will help to position the company to increase its export earnings.

Facey is a distributor of Seprod products, primarily in Jamaica.

Seprod manufactures and distributes edible oils and fats, corn products and other household consumer products.

Facey Group Limited is a diversified distribution conglomerate incorporated in Barbados with subsidiaries in more than 30 countries throughout the Caribbean, including Jamaica, as well as Central America, Europe and the Pacific.

It was not immediately known what percentage of Seprods revenues is attributed to exports.

Seprod's over 516 million ordinary shares is currently valued atJ$9.8 billion. It last traded on the Jamaica Stock Exchange at J$19.03.