Business
JM | May 12, 2022

GraceKennedy delivers good performance in first quarter of 2022

/ Our Today

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Revenues up J$4.9 billion over prior year; profits up J$53.9 million

GraceKennedy headquarters in downtown Kingston.

GraceKennedy (GK) Group has released its unaudited financial results for the three-month period ended March 31.

The company maintained a stable performance for the first quarter of the year, achieving robust revenues of J$36.26 billion, an increase of 15.5 per cent or J$4.86 billion over the corresponding period of 2021.  

GK’s profit before other income for the period was J$1.55 billion, a J$26.6 million or 1.74 per cent increase over prior year, and profit before tax was J$2.57 billion, representing a J$53.9 million increase over the same period in 2021.

Net profit after tax was J$1.88 billion, representing an increase of 2.1 per cent or J$39.4 million over prior year. Net profit attributable to stockholders was J$1.74 billion, 4.9 per cent or J$81.7 million higher than the corresponding period of the previous year. Earnings per stock unit for the period was J$1.75 compared to J$1.67 in 2021. 

Andrew Messado, GraceKennedy Group CFO.

Group CFO Andrew Messado has announced a dividend payment of 48 cents per stock unit, payable on June 16, 2022, totaling $476 million.

Commenting on GK’s first quarter results, GK Group CEO Don Wehby explained that, since late 2021, the GK team has been navigating inflationary pressures, rising interest rates, and supply chain disruptions in many of the markets where it operates around the world.

“The COVID-19 pandemic has taught us how critical it is to remain agile in the face of challenges, and the GK team continues to operate with this in mind, as we work together to mitigate the impact of headwinds on our businesses,” said Wehby.

GK’s Foods business recorded an overall growth in revenues and PBT when compared to the corresponding period of 2021; however, there were mixed results across its divisions, as logistics issues and margin pressures continued to impact its operations globally.

(Photo: GraceKennedy Group)

In the meantime, GraceKennedy Financial Group’s (GKFG) Banking and Investments and Insurance segments recorded positive performances for the period, while its Money Services segment reported a decline in revenue and PBT, primarily attributed to low remittance flows and foreign currency volatility during the quarter. Overall, however, GKFG continued to record growth in revenues and PBT during the period.

“The geopolitical developments of the last few months, coupled with the ongoing challenges related to the pandemic, have resulted in our outlook being cautious for the rest of 2022, but this does not daunt us in any way, and the GK team continues to execute our strategic initiatives with determination – we are always up for any challenge. That’s part of the reason that GK is able to celebrate our 100th anniversary this year! Our M&A strategy is well-advanced, and we are particularly excited about our latest investment in Bluedot, which feeds into our digital transformation strategy and deep focus on customer-centricity,” said Wehby.  

PRIVATE INVESTMENT IN BLUEDOT

In April, GK announced that it would be making a private equity investment in the research and data intelligence business consultancy firm, Bluedot, which uses data collection and analytics to inform business insights and decision-making.

GK also recently released its new GK ONE mobile app on Google Play and in the Apple App Store. Using the GK ONE app users can currently pay bills or apply for a First Global Bank credit card. The app’s Receive Remittance feature, which will allow users to deposit their remittances directly into their GK ONE wallet is expected to launch in the coming months.

In February, GK announced that its GKFG investment and advisory firm, GK Capital received approval from the Financial Services Commission (FSC) to offer mutual fund products through GK Mutual Funds Limited (GK Mutual Funds), a newly incorporated entity which is expected to launch by the third quarter of 2022.

Don Wehby, GraceKennedy Group CEO.

Wehby has indicated that more details of these and other initiatives will be covered during his presentation at GK’s 2022 Annual General Meeting, which is scheduled to take place in hybrid format on May 25.

“It’s an exciting time for GraceKennedy. There are several important strategic initiatives underway in our businesses which are helping to shape a bright future for our Company; we really have so much to be thankful for – our amazing GK team, business partners, loyal customers and all our supporters,” said Wehby.

He continued: “We have been so humbled and honoured by the well wishes and words of encouragement we have received since the start of the year in recognition of GK100. Our anniversary is a yearlong event, and we look forward to continuing our celebrations throughout 2022.”

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