May 2007 Financial News

GraceKennedy profits up 24% for first quarter

May 11, 2007

GraceKennedy Limited reported positive results in its interim report to stockholders for the quarter ended March 31, 2007. The group's revenues were $10.57 billion, an increase of $1.79 billion or 20.4 per cent over the corresponding period of 2006. Additionally, the net profit attributable to equity holders moved from $476.8 million to $594.6 million, an increase of 24.7 per cent over the same period in 2006. This represents earnings per stock unit of $1.83 (2006: $1.46).

Commenting on the results, GraceKennedy's Chairman & CEO, Douglas Orane said the upward trend in revenues and profits across GraceKennedy indicated that the group was beginning to reap the benefits of the recent reorganisation and other measures implemented over the past year to position the company internationally.

On March 20, 2007, the board of directors approved an interim dividend payment to be made on May 28, 2007 of $147 million, which represents 45 cents per stock unit based on the existing 326 million issued shares.

Strong results

For the first quarter, GK Foods, the group's food arm, generated strong results both in terms of revenues and profit all companies in the division generated positive results, the domestic companies performed particularly well. The sale of new products for the first quarter represented 14 per cent of total sales, in keeping with projections.

Mr. Orane said the newest product, Grace Instant Porridge, had performed "way above expectations" and would shortly be launched overseas. Grace Instant Porridge is produced by National Processors Ltd., a GraceKennedy-owned factory, located in Temple Hall, St. Andrew.

GK Investments recorded good results for the first quarter of 2007 with the most dramatic improvement in performance recorded by Hardware & Lumber Ltd. The company's financial results showed net profit of $24.6 million compared to net profit of $3.1 million for the comparative period in 2006. Sales increased by 26 per cent, moving from $1,269 million in 2006 to $1,599 million in 2007.

The GKRS Group also performed well for the first quarter, with profit before tax exceeding the prior year by 43 per cent.


Source:
The Jamaica Gleaner
Friday 11th May, 2007

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