July 28 - GraceKennedy Limited continued to perform satisfactorily for the first half of 2005 achieving revenues of $16.375 billion, compared to $14.810 billion over the same period in 2004, an increase of $1.565 billion or 10.6%. The Net profit Attributable to Equity holders of the Company increased by $72.1 million over the corresponding period of 2004, moving from $895.2 million to $967.3 million, an increase of 8.05%.

Douglas Orane, Chairman & CEO, GraceKennedy Limited reported very good results for the Food Trading and the Financial Services Divisions. Food Trading recorded substantial increases in revenues and profit. Grace-owned brands continued to grow in both the domestic and international markets. Three new variants of Grace Cup Soup (Caribbean Fish, Cock Soup, Pumpkin Beef) and the new Tropical Rhythms Island Mango have been well received by the market. The Division is on target in its implementation of the new SAP software system.

In the Financial Services Division, both First Global Bank Limited and First Global Financial Services Limited produced excellent results. Mr Orane announced the launch of four new mutual funds in Trinidad & Tobago - GK Caribbean/US Equity Fund, GK Global Fund, GK Global Industry Focused Fund and GK Caribbean Blue Chip Fund. The Group's new joint venture with Guardian Life, Medecus Health Insurance Company Limited, successfully commenced operations June 1, 2005. The Jamaican policies held by Dyoll Insurance, which were assumed by Jamaica International Insurance Company, are contributing significantly to the company's growth in the insurance industry.

The Group's Retail & Trading Division reported mixed results for the period. The heavy rains in May and June as well as excess in inventories impacted negatively on Hardware & Lumber's (H&L) performance. H&L's Renounceable Rights Issue, completed during the quarter, was heavily oversubscribed. The net $336 million raised will be used to fund capital expenditure projects and repay bank loans.

The Group's Information Services Division reported an increase in transaction volumes. Profits declined, however, due to reductions in fees charged to remittance customers in keeping with Western Union's drive to be more competitive globally. Bill Express's expansion drive has been enhanced with the signing of a Licensing agreement for St Vincent.

GraceKennedy's Jamaican Birthright Programme, a two-month professional and cultural internship is now in its second year. Eight candidates of Jamaican parentage were selected from the United States, United Kingdom and Canada. The programme is designed to give the candidates a well-rounded Jamaican experience after which they will make the transition from 'intern' to 'ambassador' and return home to promote Jamaica and GraceKennedy to the Jamaican Diaspora.

GraceKennedy's Code of Ethics & Guidelines for Business Conduct was introduced to the over 400 participants at the 2005 Mid-Year Business Conference, held on June 25, 2005 under the theme "Together we are GraceKennedy". The document is based on the company's values, traditions and philosophies and provides the guidelines for conduct for the directors, and employees throughout the Group.

The company officially changed its name to GraceKennedy Limited at the Company's annual general meeting held May 30, 2005. The majority of companies within the Group are changing their names to reflect this change.

After 35 years of service to the GraceKennedy Group, Mr. A. Rafael Diaz retired from the Board of Directors. Mr Orane noted that Mr Diaz "will continue to serve as a director on some of the Group's subsidiary boards. Mr. Diaz has given invaluable service to the GraceKennedy Group and has been integral to our growth and the preservation and promotion of our values."

Posted: July 29, 2005