Jamaica's Seprod sells Butterkist and Snackables

Jamaican manufacturing and distribution conglomerate Seprod Limited completed the sale of its International Biscuits Limited (IBL) subsidiary on February 28, 2026 — offloading the maker of household-name brands Butterkist and Snackables as part of a deliberate push to reduce debt and sharpen its regional focus.

Seprod's Q1 2026 cash flow statement recorded a J$1.71-billion net cash inflow from the disposal. The group booked a $921.86-million gain on the sale — implying the buyer paid at least J$784.20 million above IBL's net asset value, which stood at $913.96 million as of December 2024. A J$20.62-million loss from IBL's discontinued operations was also recognised in the same quarter.

The one-time windfall drove Seprod's consolidated net profit for the three months ending March 31, 2026 to J$1.65 billion — a 95% jump year-on-year from the prior period's J$849.92 million. Strip out the IBL gain, however, and the picture changes: underlying net profit would have been approximately J$730.83 million, trailing last year's comparative figure.

Consolidated group revenue slipped three per cent to J$36.42 billion, partly weighed down by Hurricane Melissa's disruption to the HORECA (Hotels, Restaurants and Cafés) channel. Seprod's 80%-owned subsidiary A.S. Bryden & Sons Holdings Ltd reported a 6% revenue decline to US$141.19 million, with net profit collapsing from US$3.23 million to just US$67,000.

Under the terms of the deal, Seprod retains exclusive distribution rights for IBL's Jamaica portfolio and existing export partnerships for five years. IBL staff were told their terms and conditions remain unchanged.

• IBL sale completed February 28, 2026 to an undisclosed private buyer • J$1.71 billion net cash inflow recorded from the disposal • J$921.86 million one-time gain on disposal recognised in Q1 2026 • IBL net assets stood at J$913.96 million as of December 2024 • Q1 2026 consolidated net profit reached J$1.65 billion — up 95% year-on-year • Underlying net profit excluding the IBL gain: approximately J$730.83 million — below prior-year $849.92 million • Consolidated revenue fell 3% to J$36.42 billion • ASBH revenue down 6% to US$141.19 million; net profit fell to US$67,000 from US$3.23 million • Seprod retains exclusive IBL distribution rights for five years • No staff redundancies planned

The IBL divestment is a defining moment in Seprod's post-expansion reset. The J$921.86-million one-off disposal gain inflated Q1 profits sharply, but the underlying business generated only around $730.83 million in net profit — below the prior-year figure — signalling that core operational pressures remain real. 

For the broader Caribbean, the deal illustrates how regional conglomerates are being forced to make hard portfolio choices as debt servicing costs rise and consumer demand softens across multiple markets.

"Excluding the J$921.86-million one-off gain on IBL's disposal, Seprod's Q1 2026 underlying net profit would have been approximately J$730.83 million — below the prior-year comparative of J$849.92 million."

— Seprod Q1 2026 Financial Report, Jamaica Stock Exchange

Viewpoint: CEO Richard Pandohie has been candid about the logic: Seprod operates a flour mill while IBL bakes, putting the group in direct competition with its own bakery customers. "We have multiple businesses, competing with the customer. So that was a reason," Pandohie told the Financial Gleaner. He added that Seprod had been seeking a buyer for several years, framing the divestment as long-overdue portfolio discipline following the debt-heavy acquisition of A.S. Bryden & Sons — now an 80%-owned subsidiary.

Viewpoint: Butterkist and Snackables are genuine Caribbean pantry staples. Selling them while Q1 profits are being propped up by a J$921.86-million one-time gain — with underlying earnings of roughly J$730.83 million actually trailing last year's J$849.92 million — invites hard questions about the health of Seprod's core operations beneath the headline numbers.

Viewpoint: Seprod has moved to reassure stakeholders beyond the stock exchange. IBL staff were personally briefed, with Pandohie confirming "all their terms and conditions remain the same." A five-year exclusive distribution agreement ensures Seprod keeps commercial relevance across IBL's Jamaica portfolio and existing regional export partnerships — preserving relationships built over decades.