May 2006 Financial News

GraceKennedy Limited Releases First Quarter Results

May 11, 2006

GraceKennedy Limited reported Earnings Per Share of $1.46 for the first quarter ended March 31, 2006. This was 14 per cent less than 2005’s earnings of $1.69. Revenue was up 8 per cent with the Food Trading Division being the major contributor and showing 5 per cent growth. Operating profit however was down 9 per cent due to drops in Operating Income and increases in Direct Costs. Profit After Tax was ultimately down by 15 per cent.

At the current running earnings per share of TT$0.58 this share is trading at a price/earnings ratio of 10.36. Given that GraceKennedy recently downgraded its end of year forecast to between -5 to 5 per cent, we currently recommend a HOLD on this share.

Jason Gokool
Sreshtha Tewari
WISE Research Team