GraceKennedy posts revenues of J$51.5 billion for six-month period

Regional conglomerate GraceKennedy increased revenues for the six-month period ended June 30, 2019, posting J$51.5 billion, $3.12 billion more than the figure posted for the corresponding figure of 2018.

GraceKennedy’s downtown Kingston headquarters (Photo: Don Waysome)

This increased revenue figure generated a net profit of $2.27 billion, $179.2 million less than the figure posted for the same period last year.

Earnings per stock unit for the period was $2.03

Like many listed companies operating on the Jamaican landscape, Grace was negatively impacted by the new IFRS 16 standard (as it speaks to  leases), which spelt an additional expense of $115 million. Compounding this situation was an additional expense of $189 million due to post-employment benefit expenses in accordance with IAS 19.

Grace also attributed foreign exchange volatility as negatively impacting its financial performance.

The Food Trading Division saw an increase in revenue but a decline in profits compared against the same period in 2018. Hi-Lo Food Stores continues to show improvement under the management of Catherine Kennedy and has now opened its Hi-Lo Express store in downtown Kingston.

GraceKennedy Group CEO Don Wehby

Grace Frozen Patties, Jerk Wings and Tropical Rhythms have all helped to spur growth of 11% in GraceKennedy Foods (USA) division’s sales.

But while Grace Foods (USA) has made strides, over on the other side of the Atlantic, Grace Foods ( UK) saw a decline in sales for the period under review.

The Financial Services division put in a creditable performance for the second quarter, a period which saw an uptick in both revenues and profit. First Global Bank posted positive numbers compared to the same period last year, with efforts to improve efficiency paying off.

Speaking about the Group’s six-month period performance, Grace’s CEO Don Wehby said: “ We’re proud of the improved operating performance for the Group despite the challenges presented by the new IFRS standards and the volatility in the foreign exchange market. The GraceKennedy Group expects to meet its 12-month profit target for 2019 and achieve further improved operating performance.”

GraceKennedy will pay A dividend of 40 cents per share, equivalent to $397 million on September 26.