The strong performance experienced by GraceKennedy Limited in the first quarter of 2007 has continued into the second quarter resulting in double digit increases in revenues and profits for the half year.
For the half year ended June 30, 2007, the Group's revenues were $22,939.9 million, an increase of $5,746.4 million or 33.4 % over the corresponding period of 2006. Additionally, the Net Profit Attributable to Equityholders increased by $208.3 million over the corresponding period of 2006, moving from $898.6 million to $1,106.9 million, an increase of 23.2 % over the same period in 2006. This represents earnings per stock unit of $3.40 (2006: $2.76).
 For the year to date, all companies in GK Foods, including the Hi-Lo supermarkets, continued to show positive results. Of note is the outstanding performance of Grace Foods & Services, the company charged with the development and promotion of the Grace brand in Jamaica.
The company’s major investment in the UK-based WT Foods continues to meet expectations. WT Foods now offers the widest range of Caribbean ethnic products in the UK and this is of particular attraction to its major supermarket chain customers, such as Tesco, ASDA and Sainsburys. Currently, Encona sauces, one of the brands carried by WT Foods, is the number one selling hot pepper sauce in the United Kingdom with over 85% of volumes going to mainstream consumers.
GK Investments also reported very good results for the period under review. This entity comprises all of GraceKennedy’s non-food entities including the First Global group, the GraceKennedy Remittance (GKRS) group, and the Hardware & Lumber group.
The GKRS group performed well for the first half of the year with profit before tax exceeding the same period of the prior year by 55%. This was due to reduced expenses flowing from the reorganization done in late 2006, as well as increased volumes in the money transfer business.
Developments at First Global Bank Limited included the opening of a new branch in Mandeville on June 26, with another branch scheduled to open in Liguanea in September. The bank has also launched the “Global Direct” service, which allows its customers to make payments to their suppliers and receive credits to their accounts electronically.
In the insurance arena, JIIC (Jamaica International Insurance Company Limited) continues to be the insurer of choice. In February 2007, the company began offering enhanced roadside assistance services. The new REACT road rescue programme continues to receive positive feedback from its customers. In June 2007, Allied Insurance Brokers Limited received the Exporters’ Support Services Award in the insurance category.
On July 19, GraceKennedy acquired 90% of ONE1 Financial Limited, a financial services company in Trinidad & Tobago. The newly acquired company will become part of the First Global Group, which currently includes First Global Bank and First Global Financial Services Ltd. ONE1 Financial will expand the range of services it offers to Caribbean businesses and investors.
GraceKennedy’s Chairman & CEO Douglas Orane, said the company had received positive feedback from investors and the wider public on having taken the tough decisions required to increase its competitiveness. He acknowledged the contribution of GraceKennedy people in Jamaica and overseas, signaling that the employee development would continue to be a major focus of the company.
Posted: July 27, 2007 |
