Gracekennedy 2016 First Quarter Profits Up 127% Over Prior Year

2026-08-15 06:32:05 Business

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GraceKennedy Group has reported revenues of $22.1 billion, a $2.8 billion or 14.3% increase over the corresponding period of 2015.

KINGSTON, JAMAICA, May - In releasing unaudited results for the period ended March 31, 2016, GraceKennedy Group is reporting revenues of $22.1 billion, a $2.8 billion or 14.3% increase over the corresponding period of 2015. Net profit was 127% higher than that of the corresponding period last year, due in part to a non-recurring gain realised on the dissolution of some non-operating subsidiaries during the quarter. Without this gain, net profit would have increased by 67% reflecting the strong performance of GraceKennedy?s Food Trading and Money Services businesses in particular. Year to date profit from continuing operations increased by J$958.1 million or 150.4% compared with the corresponding period of 2015, moving from J$637.1 million to J$1.6 billion.

According to GraceKennedy Group CEO, Don Wehby, ?Our Foods Business has performed well due to the steady implementation and execution of our strategy.? He disclosed that GK Foods has recorded growth both in the Jamaican and overseas markets. GraceKennedy Foods (USA) LLC has made progress with the integration of the La Fe business, which has resulted in profits for the period, and both the Grace and La Fe brands have shown double digit growth, led by strong performance in the North East USA. Grace Foods? Aloe, Tropical Rhythms and Coconut Water have delivered growth in the USA market?s beverages portfolio. Grace Coconut Water has maintained its number one position in the Canadian market.

The Foods Business in Jamaica performed well, assisted in part by the strong performance of the Hi-Lo Food Stores Chain and World Brands. There was also improved performance in GK?s manufacturing and distribution businesses.

With regard to the financial segment, the Group CEO revealed that while the Banking and Investments segment recorded increased revenue, it also experienced a reduction in profit. Although FGB experienced strong growth in both its loan and deposit portfolios, profitability was impacted by restructuring costs and increased expenses related to the new Ocho Rios branch, and new technology solutions for customers. The Insurance segment reported growth in both revenue and profit. Allied Insurance Brokers Limited scored a major win, being selected as the broker for group life and group personal accident plans for the Government of Jamaica?s newly launched ?Jamaica Athletes Insurance Plan? for registered athletes from Jamaica?s national sports? associations.

The Money Services segment reported higher revenue and profit, largely due to increased transaction volumes in the remittance business and improved operational efficiency. In February, GKMS launched its remittance business in the Turks and Caicos Islands, making it the eleventh territory in which it operates in the region. The pilot for the new Mobile Wallet product is underway, with expectations of an official launch later this year.

Mr Wehby thanked all stakeholders for their contribution to GraceKennedy?s growth. ?As always, we are grateful to our customers for their loyalty and trust and to our shareholders and acknowledge their support and encouragement. We thank our team for their continued, dedicated efforts, as we transform GraceKennedy into a Global Consumer Group, grounded in and guided by our core values of Honesty, Integrity and Trust,? he said.

Contact:
Simone Clarke-Cooper, Group Chief Communication Manager
Tel: 932-3174 (office)
809-1121 (cell)

More information on GraceKennedy Products, Services & Value reward Programme:
Phone: 1-888-429-5458
Email: gkvaluerewards@gkco.com

Website:
http://gracekennedy.com/rewards/
https://www.gkvaluerewards.com/