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Seprod Limited delivered another quarter of robust revenue growth, buoyed by its regional acquisitions and expanded distribution footprint.
However, the gains at the top line have not translated into commensurate improvements in profitability, as financing costs and spending on business integration continue to weigh heavily on the group’s bottom line.
Whereas revenue has surged by double digits over nine months ended September 2025, vaulting 21 per cent from $93 billion to $113 billion, group profit in the same period has barely moved the needle, rising from $2.97 billion to $3.06 billion, a three per cent gain.
The newest additions to Seprod’s portfolio include increased shareholding in A.S. Bryden Group, from 50 per cent to 80 per cent, as well as Caribbean Producers Jamaica, CPJ, and other distributors in Barbados all held indirectly through Bryden.
The acquisitions have broadened Seprod’s reach across the Caribbean, but comes with “significant financing costs”, Pandohie acknowledged. Year to date, those costs were up 25 per cent to $3.7 billion.
“Our top line has been growing primarily through acquisition-related moves … now the idea is to translate that scaling up of revenue to the bottom line,” he said, noting that management will be held accountable if improvements are not visible from 2026 onwards.
Bryden’s latest interim results for the third quarter underscore the challenge. Revenue surged 36 per cent over none months to September — reflecting strong distribution and brand performance — but net profit remained flat. The company itself noted that its low net margins don’t align with targeted returns on equity.
Seprod’s Chief Financial Officer Damion Dodd said that while acquisitions boosted revenue, cost ratios have yet to normalise.
“We’ve done acquisitions; now we need to do the synergies to reduce the cost ratios,” he said.
Pandohie added that ERP implementation issues at CPJ, to roll it into A.S. Bryden and Seprod, compounded the pressure on the group’s third-quarter results. An ERP system, or enterprise resource planning, refers to a shared database that unifies operations within a group of companies.
Caribbean Producers descended into losses in the third quarter, even while reporting big gains in revenue, but remained in the black over the nine-month period ending September.
Post-quarter, however, CPJ was hit with new problems – operational disruptions from Hurricane Melissa, which inflicted severe damage on its facilities in Montego Bay. It resulted in inventory losses estimated at US$14 million – which were insured – and a reduction in manufacturing to around 60 to 70 per cent of capacity, Seprod said.
Distribution has since recovered, but the hospitality segment, a key revenue driver and the main market in which CPJ plays, faces headwinds. Pandohie forecasts a 50 per cent reduction in tourism-related business for the winter season, as major hotels delay reopening.
The financial impact will start showing up in CPJ’s results in the December quarter, but the company and its ultimate parent, both based in Jamaica, are already implementing measures to offset the fallout.
“We’re pivoting aggressively into retail,” Pandohie said, outlining a strategy to offset the downturn.
Another Seprod subsidiary, Facey Commodity, also suffered from Melissa, with inventory losses near US$1 million, but its operations have largely stabilised. The group’s diversified portfolio offers some cushion, yet the storm’s timing – just ahead of peak tourist season – dampens CPJ’s short-term outlook, according to Pandohie.
Looking ahead, Seprod is banking on synergies within the group, such as shared services to eliminate duplication across back-office functions, and cross-leveraging distribution networks. For instance, Pandohie expects CPJ’s retail footprint to expand from 800 to 6,000 customers by tapping into Facey’s network, while Facey, in turn, will gain access to CPJ’s hospitality expertise.
“We’re simplifying structures, improving route-to-market, and using our scale to negotiate better partnerships,” Pandohie said, citing recent wins such as the appointment to represent drinks giant Diageo in Guyana.
Management insists that 2026 will mark a decisive shift.
“We feel very confident that with the right focus and execution, we’re going to deliver really good shareholder value,” Pandohie said.
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