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GraceKennedy Group profit up 17% for third quarter

The GraceKennedy Group is reporting profits of J$277 million before tax for its third quarter ended September 30.

Grace products on a shelf in the US. (Photo: Grace Foods)

The results reflect improved performance of 17 per cent over the corresponding period of 2018.

What’s more, the Group recorded profit before other income of J$2.88 billion, or 30.2 per cent more, for the nine-month period under review up to the September cut-off when compared to the same period of the previous year. That’s a J$668.1 million increase indicating improved operating margin, a release from the company said.

“We are committed to our goal of making GraceKennedy a Global Consumer Group…”

GraceKennedy Group CEO, Don Wehby

Overall revenues of the Group was J$77.03 billion, J$3.2 billion better than 2018. Net profit stood at J$3.71 billion, a marginal increase of 0.1 per cent over the previous year. That said, the profit attributable to stockholders after tax is $J3.27 billion or J$54.2 more than 2018.

“We’re proud to report these results to our stockholders, and we expect that we will meet our financial targets for 2019, while achieving improved operating performance,” said Group CEO, Don Wehby. “We remain focused, and are working on several new and ongoing improvement initiatives across the Group, with a view to producing positive results and improving stockholder value.”

Several of the products in the Grace line (Photo: Grace Foods)

Grace said its Food Trading Division recorded improved revenue and profitability thanks to its performance in its Jamaica and USA Food businesses.

The GraceKennedy Foods (USA) brand experienced double digit growth spurred by improved sales of its Grace Frozen Patties, Grace Corned Beef, Grace Sardines and Grace Mackerel.

Its Financial Group Division also reported revenue growth and pre-tax profit for the nine-month review period over the previous year. The subsidiary First Global Bank opened four Money Link bank agents in the third quarter, for a total of eight in Jamaica.

The recently opened GraceKennedy office in New Jersey, USA (Photo: Grace Foods)

“The Insurance segment continues to perform well, with existing operations achieving growth and various new initiatives forming a base for future growth,” the release said. “GK General Insurance Company Limited continues to play a major role in the insurance sector, providing insurance products for many of the large infrastructure projects across Jamaica.”

However, Money Services reported a marginal decline in both revenue and pre-tax profit compared to prior year.

Recently, Grace announced a new payment option for customers using e-commerce site Amazon.com which allows them to pay for purchases in their local currency through Western Union.

“We are committed to our goal of making GraceKennedy a Global Consumer Group, and our results demonstrate that we are steadily making progress on that goal,” Wehby said.