 In
2002, we commemorated our 80th Anniversary
on 14 February by giving thanks to
our founding fathers and successive
chairmen spanning eight decades –
Dr. John Grace, Mr. Fred W. Kennedy,
Mr. James Moss-Solomon Sr., Mr. Luis
Fred Kennedy, Hon. Carlton Alexander,
and Mr. Rafael Diaz. Their foresight
and unswerving commitment to excellence
have provided the present generation
with a foundation of core values on
which to continue to build a stronger
company, based on our motto “Grace
– We Care”.
The theme for 2002 was “Our
roots are Jamaican – Our outlook
global”, epitomizing the basis
of our current operations at GraceKennedy.
One of our key strategies is to
expand our products and services
both internationally and locally
as we strive to better understand
the unsatisfied desires of our customers.
The theme chosen for this year is
therefore “Satisfying the
Unmet Needs of Caribbean People
wherever they live in the world”.
The Directors are pleased to present
the results for the year ended 31
December 2002. The Group recorded
sales for the year of $18.3 billion
(2001: $15.4 billion) an increase
of $2.9 billion, or 18.6%. The Net
Profit Attributable to Stockholders
increased by 40.5 % or $408.9 million
over the corresponding period of
2001, moving from $1,010.3 million
to $1,419.2 million. This represents
Earnings per Stock Unit of $4.39
(2001: $3.13). In keeping with our
dividend policy, 11.7% of after
tax profits was paid out in 2002
as dividends.
Of the nine million shares approved
for sale to our staff at an Extraordinary
General Meeting in November 2000,
6,590,947 shares have been taken
up in keeping with our policy of
encouraging employee share ownership.
It was a very successful year for
the Food Trading Division with most
of its companies surpassing budgeted
revenue and profits in both local
and overseas markets. With the successful
development of Grace Foods &
Services Company, the decision was
taken to separate the company into
two entities to avoid any conflict
between externally owned brands
and the expanding Grace and Grace-owned
brands. The new entity, World Brands
Services Company, which will sell
externally owned brands, has done
very well in its first year of operation.
The sale of Grace-owned brands
achieved a significant milestone
when they surpassed the US$100 million
mark for the first time in 2002.
Of this amount over US$30 million
was derived from sales in the international
market. Today, Grace branded products
are available in 25 countries through
a network of over 30 distributors,
resulting in an increase in exports
from our own Jamaican factories
as well as from our Jamaican contract
manufacturers.
Grace Foods International Limited,
formerly GraceKennedy Export Trading
Limited, was awarded the top prize
for Champion Exporter for 2001 by
the Jamaica Exporters Association.
The company was also named Best
Caricom Exporter, leader of the
Champion Trader II Category and
was inducted into the JEA 21 Million
Club.
Pre-tax profits in the Food Trading
Division increased from $266.1 million
in 2001 to $358.5 million in 2002,
an increase of $92.4 million or
34.7%.
The Retail & Trading Division
experienced a year of changes. Medi-Grace
Limited underwent a major restructuring
exercise during the first quarter
and this has been reflected in exceptional
items. Indications are that this
initiative has began to show positive
results as evidenced by the company
being named Distributor of the Year
for 2002 by Pfizer Consumer Health
Care.
Rapid & Sheffield Company Limited
purchased Colour Choice Limited,
a very popular and successful hardware
store specializing in tiles, bathroom
and plumbing supplies in St. Ann’s
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