Mar 2015 Financial News

GraceKennedy Limited -GKC Reports J$10.7 Billion Increase in Revenue for Year Ending 2014

Mar 03, 2015

Kingston, Jamaica, March 2 - The GraceKennedy Group has recorded revenues for 2014 of J$77.97 billion, representing a J$10.71 billion or 15.9% increase over the prior year.

Group CEO Don Wehby expressed satisfaction with the Group’s results, noting that 2014 was a year in which the company achieved significant strategic investments, in keeping with its goal of becoming a Global Consumer Group. He also noted that despite the continued depreciation of the Jamaican currency, as well as changes in consumer demand due to decreased purchasing power, the Group was able to grow its revenues in the local market.

This revenue performance was accompanied by a net profit of J$3.8 billion. The earnings per share increased from J$9.66 in 2013 to J$9.90 in 2014.

Group CFO Frank James advised of an increase in dividends paid in 2014. “The Company paid dividends totalling J$2.33 per share in 2014 compared to J$2.18 in 2013, an increase of 6.9%,” he said. At the end of 2014, the GraceKennedy stock price closed at J$61.03, a 10.8% increase over the prior year, despite there being a 5.3% decline of the Jamaica Stock Exchange Market Index over the same period.

In 2014, the Group’s main areas of focus were the strengthening of its Jamaican businesses; extending its reach in international markets – more so in Western Africa, continental Europe, and the USA’s East and West Coasts; improved capital management, cost containment and continued focus and commitment to customers and employees. The Group also maintained a sustained focus on its commitment to good corporate citizenship, carrying out its contribution to nation building through the work of its Foundations, as well as through its subsidiaries.

With regard to the divisions, GK Foods saw significant progress being made in achieving its strategic goal, with the acquisition of the business and assets of La Fe Foods Inc. (renamed GraceKennedy Foods (USA) LLC). The Group CEO said, “This acquisition is significant and will be a ‘game changer’ for the Group with increased revenue and profits for the future.” The Group’s Foods business in the United Kingdom recorded good growth in revenue and profits over the prior year, while Ghana West Africa, saw the establishment of the distribution arm for Grace and Grace owned brands. The Group invested in the renovation of the Hi-Lo supermarket chain, beginning with the Manor Park store, to overwhelmingly positive customer reviews. Grace Agro Processors (GAP) showed a significant increase in its pepper mash production, in sufficient quantities to supply local demand as well as for export.

GraceKennedy Financial Group performed creditably with good growth in profits, largely as a result of the strong performance of the Money Services and Insurance segments. The Insurance segment reported growth in both revenue and profit, attributable mainly to the improved underwriting performance of Jamaica International Insurance Company Limited. The segment was strengthened by the acquisition of an additional 50% of the shares in the St. Lucia-based EC Global Insurance Company Limited, bringing the Group’s shareholding to 80%. The division experienced slower growth in revenue due primarily to the divestment of First Global Financial Services Limited on May 30. Following this divestment, a new subsidiary, GK Capital Management, an investment and advisory business, became operational on June 2, 2014. Its activities will focus on equities and other investment vehicles.

Mr Wehby noted the passing on July 27, 2014 of GK Board Director, G. Raymond Chang who the Group CEO recognised for his significant and longstanding contribution to the growth and development of the Company. Mr Wehby also noted the passing of former GK Director and retired GraceKennedy Executive, Francis ‘Paco’ Kennedy CD, whose legacy, he said, would live on at GraceKennedy.

The company was specially recognized for its commitment to excellence when it received two prestigious awards from the Gleaner Company - Honouree of the Year Award and the Gleaner Honour Award for Business. The Company also received the Best Practice Award for Corporate Disclosure and Investors Relations from the Jamaica Stock Exchange.

Contact: Dionne Rhoden
GraceKennedy Limited
73 Harbour Street, Kingston
Jamaica
Tel: (876)922-3440

Source:
The Trinidad and Tobago Stock Exchange Limited
Tuesday March 3, 2015