Seprod Unaudited Interim Statement for 12 Months Ended 31 December 2021

• Seprod reported a net profit from continuing operations of $2.14Bn for its 12 months ending December 31, 2021, which represents a $713.66Mn (or 25.1%) reduction relative to the corresponding period in 2020. However, the 2020 financial performance includes a one-off gain of J$762.27Mn from the sale of a property. Therefore, after stripping out this one-off gain, the unaudited full-year profit for 2021 is estimated to have grown by 2.0% year over year. 
• Seprod achieved revenues of $42.91Bn, an increase of $5.17Bn or 13.7% over the corresponding period in 2020.  However, its gross margin decreased by 2 percentage points owing to higher commodity prices which influenced a 17.0% increase in direct costs. Management noted that the company absorbed some of these higher costs which resulted in lower margins. However, the increase in direct cost would have contributed to the decline in the company’s bottom-line. 
• The company’s topline performance was commendable given the fire at Facey Merchandise’s distribution centre (Facey Commodity Company Limited is a subsidiary of the Seprod Group) on October 9, 2021, that wiped out over 86% of the finished goods inventory, which also included the Christmas stocks. This would have adversely affected the company's topline line. Though revenue grew, the fire at Facey would have resulted in lower revenue growth than expected.   
• Seprod’s stock price has declined by 4.45% since the start of the calendar year. The stock closed Wednesday’s trading session at $61.88 and currently trades at a P/E of 21.3x earnings which is below the Main Market Distribution & Manufacturing Average of 23.2x.

(Source: Company Financials)