GraceKennedy’s half-year revenues up $9.2 billion Loop Jamaica

The content originally appeared on: Jamaica News Loop News

GraceKennedy Limited is reporting that it achieved revenues of $72.59 billion for the six months ended June 2022, representing an increase of 14.6 per cent or $9.24 billion over the corresponding period in 2021.

Net profit attributable to stockholders for the period was $3.7 billion, which is $111.6 million higher than the corresponding period last year and earnings per stock unit totalled $3.73, compared to $3.62 in 2021.

Commenting on the company’s half-year performance, GK Group CEO Don Wehby remained cautiously optimistic, pointing out that despite the difficult economic climate being experienced locally and globally, GK’s half-year revenue and profit are ahead of target.

He attributed the good performance to the GK team, who he said remains unwavering in their commitment and keenly focused on executing the company’s strategic initiatives.

“Like many other businesses around the world GK has been tackling significant headwinds since the beginning of the year – high inflation, sustained supply chain issues, increasing interest rates. The foreign exchange rate volatility in our local market has also been a factor. To address this, we have been implementing mitigative measures across our businesses, and as a result, GK continues to deliver good results, despite these challenges.”

Wehby said GraceKennedy’s mergers and acquisitions strategy remains on target.

Meanwhile, GK’s food business recorded overall growth in revenues for the six months ending June 30, 2022, when compared to the corresponding period of 2021. Profit before tax recorded an increase, with the majority of companies recording an improved performance.

The company noted that its Jamaican food distribution business continued to perform well, recording healthy growth in revenues and pre-tax profits. GK’s international food business also recorded an improvement in revenues over the prior year; however, record inflation and elevated distribution costs resulted in mixed performance results.

Also during the period, GraceKennedy Financial Group (GKFG) reported a positive performance for the period, with improved results recorded by its banking and investments and insurance segments. GraceKennedy Money Services (GKMS) reported a decline in revenues and profit before tax for the period, attributed to lower remittance flows as reported by the Bank of Jamaica, and the volatility of the Jamaican dollar against the US dollar.

GK has also announced the appointment of Vanessa Rizzioli to the company’s board of directors, effective July 28, 2022.

Rizzoli is a Jamaican residing in the United Kingdom. She is a corporate finance lawyer who has extensive international experience in Public-Private Partnerships (PPPs), energy and infrastructure, project financing and corporate governance.

Commenting on Rizzoli’s appointment Wehby explained, “As we pursue our 2030 vision for GK, Vanessa’s expertise will be a significant asset to our leadership team, and she also brings the valuable perspective of the Diaspora to the role.”