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The GraceKennedy headquarters in downtown KIngston.

GraceKennedy earns record JM$96 billion

The GraceKennedy headquarters in downtown KIngston.

Following its insurmountable growth during 2020 that was scathed by the pandemic, GraceKennedy (GK) Limited has generated $95.78 billion in revenue during the first nine months of 2021 (January–September), which is JM$20 billion shy of the JM$115.44 billion earned in 2020.

The company, which operates in food trading and financial services, saw its third-quarter revenue climb by 10 per cent to JM$32.42 billion. GK attributed it to the growth of its international food division including triple-digit growth of its UK operations along with the improvements in GK Foods USA and Grace Foods Canada. Its domestic food operations, including World Brands Services and Consumer Brands Limited, rebounded and registered substantial improvement in performance. Hi-Lo Food Stores saw double-digit growth in basket size with the overall food-trading segment earning JM$75.15 billion for the nine months.

GraceKennedy (GK) Group CEO, Don Wehby (centre) beams with pride after cutting the ribbon to signal the official opening of GraceKennedy USA’s new US$5-Million multi-purpose, 125,000-square-foot facility in Woodbridge, New Jersey. Joining in the celebration are: (from left) GraceKennedy Group CFO Andrew Messado, GKUS CEO Derrick Reckord, GK director Gina Phillipps Black, GK Chairman Professor Gordon Shirley, GK International Foods CEO Andrea Coy, and GK director Everton McDonald, assisted by members of an external promotional team.
(Photo: Grace Kennedy Group)

GK’s money services segment had an 11 per cent improvement, reaching JM$7.22 billion. This was driven by the growth of remittance services in its key markets of Jamaica, Trinidad and Tobago, and Guyana. Its banking and investments segment saw revenue rise by six per cent to JM$4.96 billion as GK Capital Management Limited, GK Investments and First Global Bank experienced an increase in top- and bottom-line growth. Its insurance segment saw a 20 per cent jump to JM$8.45 billion as Key Insurance and GK General contributed to greater revenue growth.

Even with lockdowns in Jamaica and price increases for the supply of goods, GK was able to push its operating profit up by 13 per cent to $3.20 billion for the third quarter. GK’s food trading segment earned $4.43 billion in profit before taxation which surpassed money services contribution of $3.05 billion. With a lower tax bill, GK’s profit attributable to owners rose by 25 per cent to $2.09 billion. The net profit attributable to owners for the nine months totalled $5.68 billion which is $541 million shy of the $6.22 billion earned in 2020. Based on these results, GK declared a $0.55 dividend totalling $545 million to be paid to shareholders on December 16.

GK’s money services segment had an 11 per cent improvement, reaching JM$7.22 billion, driven by the growth of remittance services in Jamaica, Trinidad and Tobago, and Guyana. (Photo: Georgetown Chamber of Industry and Commerce)

“Thanks to our outstanding GK team, our customers can always rely on us to supply them with goods and services they need at the highest standard. We are looking forward to celebrate our 100th anniversary with all our stakeholders next year, and are grateful for their continued support,” said Don Wehby, group chief executive officer at GraceKennedy.

— David Rose