Jamaican manufacturing and distribution conglomerate Seprod Limited has reported a near 100% jump in first-quarter net profit, a surge driven almost entirely by a one-time gain from the strategic divestment of its subsidiary International Biscuits Limited (IBL), even as slowing consumer demand across Jamaica and Trinidad & Tobago dragged down core operating results for multiple group businesses.
Completed on February 28, the IBL sale forms a core part of Seprod’s long-term strategy to cut group-level debt and streamline its asset portfolio to align with future growth priorities. According to the firm’s first-quarter cash flow disclosures, the disposal generated a net cash inflow of $1.71 billion for the company.
In its official Q1 report, Seprod framed the divestment as a deliberate strategic move, noting that offloading IBL allowed the group to refocus its resources on core priorities aligned with long-term value creation. Accounting records show the firm logged a $20.62 million loss from discontinued IBL operations for the quarter, paired with a $921.86 million gain on the disposal of the subsidiary. Based on IBL’s reported net assets of $913.96 million as of December 2024, the purchase price from the buyer worked out to roughly $784.20 million above IBL’s net asset valuation.
For the three-month period ending March 31, Seprod posted a consolidated net profit of $1.65 billion, marking a 95% increase from the $849.92 million recorded in the same period last year. However, the impressive headline growth masks underlying weakness in core operations: excluding the $921.86 million one-time disposal gain, consolidated net profit would have come in at just $730.83 million, down from the prior year’s baseline.
Overall group revenue slipped 3% year-over-year to $36.42 billion, a decline that Seprod attributes in large part to ongoing disruption to the HORECA (hotels, restaurants, cafés, and catering) channel in the wake of Hurricane Melissa. The downturn is even more pronounced at AS Bryden & Sons Holdings Limited (ASBH), Seprod’s 80% controlled subsidiary, which saw a 6% drop in consolidated revenue to US$141.19 million (equal to $22.13 billion). ASBH’s net profit plummeted from US$3.23 million in the prior-year quarter to just US$67,000 in the latest period.
Much of ASBH’s profitability decline stems from performance issues at Caribbean Producers (Jamaica) Limited (CPJ), its 79.99% owned subsidiary. CPJ’s revenue fell 28% to US$33.13 million in the quarter, swinging from a prior-year net profit of US$1.81 million to a net loss of US$1.17 million this quarter.
In its own Q1 report, ASBH outlined a mix of external and internal headwinds driving the weak results: higher alcohol duties in Trinidad & Tobago, softening consumer demand across key product categories, persistent disruptions to Jamaica’s hospitality and tourism sectors following Hurricane Melissa, and elevated overhead costs tied to the group’s ongoing regional expansion and integration projects. The soft operating performance across multiple business units comes as Seprod continues its push to streamline its portfolio, cut debt, and boost efficiency against a backdrop of broadly slowing consumer demand across the Caribbean region.
Despite the widespread operating headwinds, Seprod’s leadership struck an optimistic tone about the firm’s long-term trajectory, noting that cost containment efforts have so far kept expense growth in check. The group’s gross profit margin dipped only marginally, from 26.73% to 26.64%, even in the face of higher input costs and lower top-line revenue. Overall operating expenses rose just 1% ($90 million) in the quarter, a figure Seprod says reflects active management efforts to control unnecessary spending. Net profit attributable to Seprod shareholders jumped from $548.40 million in the prior-year quarter to $1.67 billion in the latest period.
Signed by Chairman Paul B Scott and Chief Executive Officer Richard Pandohie, the Q1 report reaffirmed the group’s core strategic priorities: “We remain focused on margin resilience, cash generation, cost optimisation, disciplined growth, and improving return on equity (ROE). These initiatives are foundational to building a more efficient, integrated, and performance-driven organisation.”
Over the quarter, Seprod’s total consolidated asset base contracted 5% to $137.44 billion, with current assets totaling $75.15 billion. The firm purchased 5.29 million ASBH 6.00 preference shares for US$5.29 million ($812.81 million) during the period, after existing shareholders Ambergate Limited and Fairchild Limited cut their positions in the subsidiary.
Total group liabilities fell 9% to $86.78 billion, driven by reductions in accounts payable and the current portion of long-term debt, with total consolidated equity coming in at $50.66 billion, $39.94 billion of which is attributable to shareholders. Seprod’s full audited 2025 financial statements are currently delayed, as ASBH has not yet completed its own audited disclosures; ASBH has indicated it expects to submit its completed financials by May 31.
As of Monday’s market close, Seprod’s share price stood at $82.43, leaving the stock down 2% year-to-date in 2026 with a total market capitalisation of $75.09 billion. The firm has also declared a $0.605 per share dividend, totaling $551.12 million, which will be paid out on June 5 to shareholders recorded on the company’s books as of May 15. While the per-share dividend matches the 2025 payout, the total payment is larger than last year’s $443.80 million, a change driven by a July 2025 share swap that increased Seprod’s stake in ASBH to 80% after the firm issued 177,398,683 new ordinary shares.