Bryden adding value to Seprod

JAMAICAN conglomerate, the Seprod Group, has already started to see the benefits of its acquisition of a majority stake in T&T importer and distributor AS Bryden & Sons Holdings.

Seprod announced the agreement to acquire a controlling interest in Bryden on May 4, 2022, and reported that the acquisition was closed on June 6, 2022.

In its half-year results-for the period January 1, 2022, to June 30, 2022-Seprod recorded revenues of J$27.81 billion (about TT$1.2 billion), which it said was an increase of J$7.98 billion (TT$347 million) or 40 per cent over the corresponding period in 2021.

In its financial report for the period ending June 30, Seprod said the 40 per cent year-to-date growth in its revenue 'was driven by the contribution of the Bryden Group for the month of June 2022, robust export growth, improved product mix, improved production of fresh milk at the dairy farms, the launch of new snack line and price increases'.

Seprod added that its results in the second quarter and for the half year 'therefore, include the performance of the Bryden Group for the month of June 2022, which is a significant contributor to the uplift in the results relative to the comparative periods of the prior year'.

Seprod reported net profit (after tax) of J$1.57 billion for the six months ended June 30, 2022, which was 30.8 per cent more than the J$1.20 billion it reported for the same period in 2021.

'The percentage growth in net profit is less than that of the revenue growth as the company continues to absorb some of the cost increases, rather than passing through the full extent of these cost increases to consumers,' the publicly listed Jamaican company said in its interim report.

Of the cost of the acquisition of AS Bryden to Seprod, the Jamaican company's second-quarter financials state: 'Finalisation of the accounting for the acquisition is subject to the completion of valuation reports of intangible assets and other matters.'

In the May news release announcing the agreement to acquire AS Bryden, Seprod projected that the combination of the two companies would lead to revenues in excess of US$500 million (TT$3.4 billion).

Seprod also estimated that the two companies would have a combined workforce of close to 3,000 employees, and would 'serve the world's leading food, pharmaceutical, premium beverage, hardware and industrial companies, with an expanded portfolio of their own manufactured brands'.

AS Bryden, which celebrates its 100th anniversary next year, operates through three principal operating subsidiaries-AS Bryden & Sons (Trinidad); Bryden pi and FT Farfan Ltd.

AS Bryden Trinidad distributes food, hardware and housewares and premium beverages for international brands including Mondelez, Whirlpool, Rubbermaid, Truper, Reynolds, Colcafe, Bon ice cream, Cadbury, Johnnie Walker, Hennessy, Moët & Chandon, Red Bull, Black & Decker, LG, KitchenAid, Oster and Speed Queen. It also owns the Eve brand of products.

Bryden pi distributes healthcare, personal care and food and grocery products for international brands, including Kimberly Clark, Mead Johnson, Baxter, Roche, GSK (GlaxoSmithKline), L'Oreal, Novartis, Sanofi and Sandoz.

Bryden pi also manufactures a line of over-the-counter products through its wholly-owned subsidiary Genethics; and operates in Guyana through its subsidiary, BPI Guyana; and in Barbados through its joint venture, Armstrong Healthcare Inc.

FT Farfan is an industrial supply and service company that serves leading international brands, including Stihl, JCB, Castrol, Shell Marine, Cummins and Lincoln Electric. FT Farfan operates in Trinidad and in Guyana through its subsidiary, Ibis Construction Equipment Sales & Rentals Inc (ICON) Guyana.

FLASHBACK: Ian Fitzwilliam, former chairman of AS Bryden, from left, meets Trade and Industry Minister Paula Gopee-Scoon, Seprod chairman Paul Scott and CEO of Seprod and interim CEO of AS Bryden Richard Pandohie at the minister's office on Independence Square in Port of Spain on May 17, 2022.