GraceKennedy Group - GraceKennedy Ltd reports strong results for Q3, profits up by 56.9%
Friday, 10 November 2017 22:35

GraceKennedy Ltd reports strong results for Q3, profits up by 56.9%

GraceKennedy Ltd’s third quarter financial report was released on Thursday, November 9. The results showed positive performance in revenues, net profit and advances in three of the four business segments. For the nine month period ending September 30, the Group achieved revenues of $69.3 billion, up by $2.6 billion over the same period in 2016. An increase of $51.4 million resulted in net profit of $3.75 billion while shareholder equity moved to $44.4 billion from $42 billion in 2016.

For the three months under review, net profit went up by $567.85 million or 56.9% to $1.56 billion. Don Wehby, Group CEO, attributes focus and discipline in executing the Company’s strategy to this quarter’s results and said he anticipates a strong finish for 2017.

“We have been steadily executing our strategy and are seeing the results. We are pleased with the performance of the Group and expect to finish 2017 on a strong note. With our customers at the focus of our entire operation, innovation, convenience and new technology are shaping our view of the future and how we deliver our goods and services,” he said.

The Group had several new initiatives during the quarter including the acquisition of Consumer Brands Ltd. “We are quite optimistic about Consumer Brands and its capacity to add value to our shareholders.

We have made, at the outset, a non-recurring gain of $418.5 million on the acquisition. We expect the business to continue to do well, given its knowledgeable and competent team and the Proctor and Gamble portfolio of products,” Mr Wehby said.

Frank James, Group Chief Financial Officer, explained the impact of non-recurring gains on the net profit.

“In 2016 a non-recurring gain was attributable to the liquidation of non-operating subsidiaries. In 2017, we recorded $455 million in non-recurring gains due to liquidation of non-operating subsidiaries and an acquisition. Without these gains, net profit would have been higher than the corresponding period of 2016 by 0.7%. For Q3 2017, without the one-off gains, net profit for the three months ended September 2017 would have increased by 14.6% over prior year,” Mr James said.

He added that: “Shareholders will receive a dividend of .45 cents per stock unit, bringing dividends year-to-date to $1.13, an 11% increase over the corresponding period.”