Sabrina N. Gordon, Business Reporter

"We have had a good year," says Byron Thompson, managing director of the Seprod Group of companies. - File

Seprod Limited has posted record net profit in its 2007 financial year, hitting the billion-dollar mark for the first time, boosted by one-off receipts from the sale of its interest in several businesses.

The $1 billion profit or earnings per share of $1.96 posted by the manufacturing company was more than double the $460 million or $0.89 EPS, recorded in 2006.

"We have had a good year," said Bryon Thompson, group CEO and managing director.

"The only disappointment was the fall in milk production after Hurricane Dean, as the cows were not able to produce as normal, given the weather conditions."

Business segments

Seprod's business is organised into two business segments: the manufacturing and sale of oils, fat, corn milk, and other products and the merchandising of consumer goods.

Manufacturing brings in $5 billion, or two-thirds of total revenue and accounts for $497 million of operating profit.

Last year, Seprod achieved a 26.7 per cent increase in sales to $6.2 billion at the end of the year, compared to the $4.9 billion recorded for 2006.

A total of $409 million due to the sale of Seprod's 50 per cent shareholdings in Gatcombe, as well as disposal of its interest in CMB Limited and Productive Business Solutions, was offset by relatively small changes in selling and administrative expenses, bringing the company's operating profit to $933 million.

Fixed-asset gains

During the year the company also realised gains on the acquisition of fixed assets, inventory related to Kraft Foods brand in the amount of $138 million.

Another $202 million of earnings were contributed by associated companies.

The company's balance sheet also showed improvements. Net assets rose more than $800 million to $5.9 billion, while shareholder equity has similarly climbed to $5.2 billion.

sabrina.gordon@gleanerjm.com