First Look

Gracekennedy third quarter results show group revenues up $7.7 billion over prior year



GraceKennedy Limited | 2014-11-06 00:00:00

Company Delivers 20.5% growth in net profit 

GraceKennedy is reporting that unaudited results for the Group for the nine months ending September 30, 2014, show revenues for the period of $57.4 billion, an increase of 15.5% or $7.7 billion over the corresponding period of 2013.  Net profit attributable to owners of the Company increased by $406.3 million or 20.5% compared to the same period last year.    

“It has been a challenging period, but we are really proud of what we have achieved,”   remarked GraceKennedy Group CEO, Don Wehby. He pointed to the company’s acquisition of the business and assets of La Fe Foods Inc., - which has its operations in New Jersey, Florida and North Carolina - in July, as well as the acquisition of an additional 50% of the shares in EC Global Insurance Company Limited, a St. Lucian company (making GK majority shareholders) in September, as two outstanding highlights. “The La Fe acquisition has the potential to significantly expand our North American business with our own distribution, manufacturing and brand building capabilities in that market.  As majority shareholder of EC Global, we are excited about the prospects that this business provides for our continued expansion in the region,” he said.  Mr Wehby was quick to emphasize that even with those significant developments, the company remains extremely focused on the ‘fortress’ of GK – its domestic business.

GraceKennedy Foods (GK Foods) recorded 21% growth in revenue over the corresponding period last year, a performance boosted by the La Fe acquisition as well as the continued strong performance of business in Europe and the United Kingdom. While revenue performance improved, profits were impacted by the depreciation of the Jamaican dollar, resulting in lower margins. Several new products were developed and launched in Jamaica and Canada specifically, and the domestic segment continues to focus on several projects to enhance efficiency, capability and profitability. 

Of special note also, is Grace Agro Processors’ (GAP) increased pepper mash production.  The GraceKennedy processing plant located in Hounslow, St Elizabeth, now produces twice its normal output of pepper mash and provides supply not only to the local market, but for export to markets in the United Kingdom, Switzerland and St Lucia.

 

Strong performance in the remittance business (particularly in Jamaica and Guyana) coupled with an improved performance in the insurance underwriting business (mainly at JIIC) were the chief contributing factors behind higher revenue and pre-tax profit for the GraceKennedy Financial Group (GKFG) over the corresponding period last year. In August 2014, GraceKennedy Money Services (GKMS) piloted CoinXchange, a hassle-free service for exchanging coins for notes. Another noteworthy development this quarter is GraceKennedy Payment Services Limited’s approval from the Bank of Jamaica to proceed with a pilot introduction of the new, innovative mobile money service, with exciting prospects and benefits to come from this initiative.   

While First Global Bank recorded good growth in deposits and loans resulting in increased net income, the banking and investments segment reported a decline in profits due to a decline in gain on sales of securities as well as increased operating expenses. During the quarter, GK Capital Management Limited received a Securities Dealer Licence from the Financial Services Commission and received approval from the Jamaica Stock Exchange to begin trading.

Group CFO Frank James disclosed that the company declared an interim dividend of $0.85 per stock unit on November 6, 2014, bringing the total dividend since the start of the year to $2.33 per stock unit up from $2.18 per stock unit in the prior year. “We are happy to advise that our shareholders’ equity and earnings per share has increased over the nine month period, and we are working hard to ensure that this trend continues,” said Mr James.

“We are encouraged by our third quarter results, and are motivated to keep working to achieve our goals,” said the Group CEO.   He added, “We thank our shareholders, our staff, customers and other stakeholders for your continued support as we continue to transition towards becoming a Global Consumer Group with focus on foods internationally and financial services in the region.”

 


 




Posted By :Simone Clarke-Cooper

Company Name : GraceKennedy Limited

Website :

Company Address : 73 Harbour Street, Kingston, Jamaica.


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