Seprod Reports Solid Performance For Year Ended December 2020

• Efforts made in prior years to strengthen business fundamentals, including consolidating its dairy factories, increasing exports, and expanding its distribution footprint through the acquisition of the Facey Consumer business, supported Seprod’s robust earnings performance in 2020.
• Consequently, the company was able to increase revenues by 16.4% (or $5.37Bn) to $38.07Bn in FY2020, which more than compensated for the 6.1% (or $1.45Bn) and 24.3% (or $1.78Bn) rise in direct and indirect expenses, respectively. This influenced an 85.7% or $1.46Bn year over year growth in net profit from continuing operations to $3.17Bn (EPS: $4.32).
• Seprod realized a reduction in the demand for goods and services from the tourism sector (which accounts for a maximum of ~10% of direct revenues). However, this fall-off was more than offset by the sale of pharmaceutical products and basic food items such as flour, cornmeal, cooking oil, and margarines during the pandemic.
• After rising 27.3% in 2020, Seprod’s stock price has further increased by 4.2% since the start of 2021 and closed Tuesday’s trading session at $67.61 per share. At this price, the stock trades at a P/E of 15.7x, which is below the Main Market Distribution & Manufacturing sector average of 27.5x.

(Source: Seprod Financials)