GraceKennedy Limited (GK) maintained its profitability in the first quarter of 2025, as the retail, distribution and financial services conglomerate saw growth across most of its segments.

In its financial results for the first quarter (Q1) ended March 31, 2025, GK reported revenue of $44.22 billion, representing an increase of 4.4 per cent or J$1.87 billion over the corresponding period in 2024.

Despite a dip in operating profit, the group generated profit before tax of $3.16 billion, which was J$12.70 million higher than the corresponding quarter in 2023. Net profit attributable to stockholders was $2.22 billion, up 3 per cent or $64.18 million compared to Q1 last year. Earnings per stock unit for the period were J$2.25, compared to J$2.18 in 2024.

Commenting on the results, GK Group CEO Frank James stated, “We remain focused on delivering sustainable growth, and our 2025 performance to date reflects the strength of our diversified Group and the resilience and agility of our team. Notwithstanding global economic headwinds, we continue to build momentum across both our food and financial divisions and remain committed to creating lasting value for all our stakeholders while we advance our vision of becoming the number one Caribbean brand in the world.”

Segment performance

Reporting on the performance of its business segments, the group noted that GraceKennedy Foods (GK Foods) realised a strong first-quarter growth in both revenue and PBT in 2025 compared to the same period of 2024, despite a challenging global trade environment. This was achieved through cost-saving and market management initiatives.

Responding to tariff threats, the directors stated, “We also continue to proactively manage the evolving global tariff landscape by implementing a range of measures to enhance resilience and protect our customers, including optimising our sourcing strategies and reinforcing inventory and cost management.”

They continued, “We continue to make steady progress in expanding our presence in the food service channel and are working to enhance supply chain efficiency and service delivery across our food business.”

Meanwhile, GraceKennedy Financial Group (GKFG) also recorded revenue growth in the first quarter of 2025 compared to Q1 2024, driven by strong performances in both the insurance and banking and investments segments. There was growth in the motor and property insurance, as well as the expansion of First Global Bank’s loan portfolio.

The group’s GK Money Services division, however, experienced a dip in profits mainly due to the reduction in remittance flows and transaction values in Guyana and Trinidad & Tobago. Though the shortfalls were offset by GK Money’s increase in market share in Jamaica.

While there has been notable short-term pressure on overall earnings in this segment, we expect long-term benefits from our digital remittance platform—the GK One app—as it scales up and operational efficiencies improve,” the directors informed shareholders.

GK remains optimistic about this segment, bolstered by the continued growth of its digital remittance platform, the GK One app, which is slated for launch in the Cayman Islands, Guyana, and Trinidad & Tobago later this year.

Acquisitions and improvements

Looking ahead, GK Limited anticipates improved performances as it acquired an additional 27 per cent stake in Key Insurance Company, deepening its presence in the general insurance market, and 30 per cent interest in Catherine’s Peal Bottling Company to increase its market share in the Jamaica spring water segment.  

GK Group CFO Andrew Messado has announced the declaration of the company’s second dividend payment for 2025.

“In keeping with our commitment to deliver consistent returns to our shareholders, we are pleased to declare a dividend of $0.52 per stock unit, payable to shareholders on June 20, 2025, totalling approximately $516 million,” Messado said.