Reading Time: 3 minutes

GraceKennedy Limited (GK) reported higher revenues for the six months ended June 30, 2025, but a slight dip in net profits for the period.

The food and financial services conglomerate saw improvements in both revenues and profits across all its food business lines, but its financial services segment had mixed results. For the half-year, GK Limited posted revenues of $89.02 billion for the half year, which increased by $4.63 billion or 5.5 per cent over the corresponding period in 2024.

In the meantime, the group earned profit before tax (PBT) of $6.11 billion, compared to $6.46 billion in 2024. Net profit attributable to stockholders was $4.25 billion, a decrease of 4.2 per cent.

Earnings per stock unit for the six-month period were $4.30 versus $4.48 in 2024.

Overview of food business

In its food business, GK posted growth in both revenue and profitability, despite a challenging operating environment. Strong performances across all key product categories in the food distribution business resulted in revenue increases. However, higher warehousing and logistics costs impacted profitability.

“…The business strategically built inventory to meet ongoing consumer demand in the face of global supply chain uncertainties,” the company explained in a press release attached to results.

Both Hi-Lo Food Stores, GK’s Jamaican supermarket chain, and GK’s manufacturing segment recorded growth in both revenue and profit.

“GK’s international food business delivered solid results, achieving strong revenue growth and double-digit gains in profitability. GraceKennedy Foods USA reported growth in both the Grace and La Fe brands, while Grace Foods UK delivered increases in revenue and profitability. GK remains focused on mitigating risks posed by the global trade environment through improved operational efficiency, sourcing optimisation, and strengthened supplier partnerships,” the release outlined.

Mixed results in financial services

On the GraceKennedy Financial Group side, there were mixed results, as strong growth in the GK Insurance segment was offset by a decline in the performance of its Money Services segment.

The group attributed this fall-off in GK Money Services to various factors, including digital disruptions in the global remittance space, adding that the performance “weighed on overall profitability”.

“GK Money Services (GKMS) continued to gain market share while navigating a challenging operating environment in several key remittance markets, amid ongoing shifts in the global remittance landscape. The remittance industry is undergoing significant transformation, driven by the accelerated move toward digital solutions, changing transaction flows, and evolving regulatory requirements,” GK Limited stated.

“As GK repositions GKMS to compete more effectively in this environment, its digital transformation strategy is gaining momentum, with strong growth in digital remittances being reported. While short-term performance has been impacted by this investment, GK anticipates returns to increase as it scales up its digital remittance business,” GK Limited continued in its statement.

Presently, the GK One app continues to be the leading digital remittance platform in Jamaica. It is on track for expansion into the Cayman Islands, Guyana, and Trinidad & Tobago by year-end.

In the GK Insurance segment, GK General Insurance delivered growth in revenue and profit, with Canopy Insurance and Key Insurance also reporting improved performance. At the same time. The banking and investments segment, First Global Bank, outperformed the corresponding period in 2024 in revenue and profits, supported by strong loan portfolio growth.

After releasing the results, GK Limited declared an interim dividend of $0.55 per stock unit, payable on September 22, 2025. Totalling approximately J$543 million, this payment marks the third interim dividend GK has declared for 2025, bringing its year-to-date dividend payout to approximately $1.6 billion.