Share buy-back approved by the company’s board of directors

GraceKennedy (GK) has released its annual financial results for the year ended December 31, 2022.

During the period GK recorded strong top-line growth, realising revenue of J$142.9 billion, an increase of 10.5 per cent or J$13.6 billion over the corresponding period in 2021.

Operating profit across the business segments was mixed, however, with overall profit before other income of J$6.5 billion, a J$0.8 billion or 11.0 per cent decline compared to prior year. 

BUSINESS NAVIGATING HEADWINDS

Profit before tax (PBT) was J$10.2 billion, 12.5 per cent or J$1.5 billion lower than the corresponding period of 2021, while net profit after tax was J$7.6 billion, a decline of J$1.3 billion or 15.1 per cent when compared to prior year. Net profit attributable to stockholders was J$7.0 billion, 14.2 per cent or J$1.2 billion lower than the corresponding period of 2021.

Excluding non-recurring gains of J$895 million in 2021 and J$170.5 million in 2022, the decline in net profit for 2022 compared to 2021 would have been 7.7 per cent. Earnings per stock unit for the period was J$7.09 compared to J$8.27 in 2021.

GK Group CEO Don Wehby commented: “GK’s team is working assiduously to effectively navigate the headwinds our business has been facing in recent months. Rising inflation, an inconsistent supply chain, increasing interest rates and distribution costs, and geopolitical tensions and conflicts were compounded by the movement of currencies in our main operating markets in 2022, and these factors negatively impacted our business’ performance. We are optimistic however, that the strategic approach we are taking to managing these challenges will produce positive results and improved stockholder value in 2023. Over 100 years GK has laid a solid foundation for our company to become a global consumer group and our team is committed to our 2030 vision.”

GK’s food business recorded strong overall growth in revenues and an increase in PBT when compared to the corresponding period of 2021. The GraceKennedy Financial Group delivered a mixed performance, recording top-line growth year over year but a decline in PBT when compared with prior year.

In tandem with the release of its 2022 financial results, GK also announced that it will launch a share buy-back this year, subject to the approval of its regulators.

Wehby explained: “We are confident in our long-term strategy and believe that investing in our own company is the best use of capital and a good investment for long term returns. The proposed share buy-back is being implemented because the company’s share price is considered to be below its true value and is an opportunity to enhance shareholder value by helping to raise earnings per share.”

GK’s first dividend payment of 2023 was also announced by GK Group CFO Andrew Messado, and will be 50 cents per stock unit, payable on April 6, 2023, totalling approximately J$495 million. This represents an increase of four per cent compared to the first dividend payment of 2022.