Jul 2012 Financial News

GRACEKENNEDY REVENUES UP $1.6 BILLION FOR FIRST HALF OF THE

Jul 30, 2012

In releasing its Stockholders’ Report for the period ended June 30, 2012, GraceKennedy Group CEO, Don Wehby, is reporting that the first half of 2012 has provided both challenges and opportunities. The Group achieved revenues for the period of $30,577 million, a $1.6 billion increase over the corresponding period for 2011. Net profit attributable to owners of the Company declined by $67 million or 5.5% compared to the corresponding 2011 period, moving from $1,217 million to $1,150 million.

The Board at its meeting on July 26, 2012, approved the payment of an interim dividend of 70 cents per stock unit, payable on September 26, 2012, to stockholders on record at the close of business on September 7, 2012. This is up from the 60 cents per stock unit paid to stockholders on May 28, 2012. The increased payout is being achieved through improved cash management.

The Group CEO revealed that GraceKennedy Foods’ revenue continued to grow, although profits remained relatively flat for the first six months of 2012. This he attributed to a tighter domestic market and supply issues with some key products. He also disclosed that two of GraceKennedy’s factories successfully passed Stage 1 of the newly established and internationally accredited FSSC 22000 food safety standard.

With regard to GraceKennedy’s international operations, it was reported that Grace Foods UK experienced positive sales growth over last year in the large supermarket chains. There was also the addition of 900 new distribution points for the company’s Encona range of sauces. GK Foods is also reporting growth in the key export markets of Europe and Africa.

Mr. Wehby disclosed that GraceKennedy’s Financial Group had mixed results in its Banking and Investment segment. While First Global Bank continued to experience improved profitability due to strong growth in loans and deposits, First Global Financial Services experienced a decrease in profitability due to reduced interest income and trading gains. GraceKennedy Money Services continues to perform well, with both revenues and pre-tax profits growing over prior year. The Group CEO described the performance of all areas of money services as
“creditable”, with the cambio line securing more commercial business.

The Group also won a number of awards during the first quarter. First Global received the “Best Banking Group – Jamaica” Award from leading UK financial magazine, World Finance. Grace Foods International (GFI) received the Governor General’s Award for being Champion Exporter at the JEA’s 2012 Awards Banquet, while Grace Foods and Services (GFS) received the prestigious Jamaica Observer Lifetime Achievement Award at the 2012 edition of their Food
Awards event.

In speaking to the company’s performance this quarter, Mr. Wehby said, “We have grasped the opportunities and withstood the challenges”. He alluded to the fact that for the rest of the year, the company’s focus will be in the areas of cost and operational efficiencies, improved margin management and working capital management. “We believe we have the right strategies in place to ensure consistent growth of the company”, Mr. Wehby stated.

Mr. Wehby expressed gratitude to GraceKennedy’s dedicated employees, directors, customers and shareholders for their efforts and confidence in the company. The Group CEO reiterated the company’s guiding principles in the pursuit of its goals. “As we celebrate our 90th Anniversary and celebrate with Jamaica its 50th anniversary of Independence, we look eagerly to the future,
committed to all our stakeholders, holding steadfast to our core values of Honesty, Integrity and Trust,” he said.

Contact: Simone Clarke-Cooper

Tel: 932-3174 (office) 809-1121 (cell)

Email: simone.clarke-cooper@gkco.com

July 26, 2012


Source:
The Trinidad and Tobago Stock Exchange Limited
Monday July 30, 2012