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The GraceKennedy headquarters in downtown KIngston.

GraceKennedy profits up 35 per cent in best ever performance

The GraceKennedy headquarters in downtown KIngston.

The GraceKennedy Group reported net profit of J$6.9 billion for the year ended December 31, 2020, an increase of J$1.8 billion or 34.5 per cent over 2019.

The GraceKennedy headquarters in downtown KIngston.

The Group realised revenues totalling J$115.4 billion, an increase of J$12.3 billion or 12 per cent over 2019. 

The top performing segment was GraceKennedy Money Services which increased its Western Union digital transactions by over 400 per cent. 

Net profit attributable to the shareholders of the Company was J$6.2 billion, a $1.7 billion increase over 2019, while earnings per share increased by 38.9 per cent, to J$6.28 in 2020.

The company describes the results as its best financial performance in its 99-year history. 

“At the centre of GK’s strategy in 2020 was securing a reliable global supply chain, improving efficiency to better manage costs…”

Group CEO Don Wehby

Revenues totalling J$115.4 billion were realised by the Group in 2020, reflecting an increase of J$12.3 billion or 12 per cent over 2019. 

Profit before other income increased by 82 per cent over prior year, from J$3.7 billion to J$6.8 billion. 

There was a notable increase of 58.5 per cent in profit before tax for 2020, totalling J$9.7 billion.

Management noted that GK’s 2020 financial results do not reflect any one-off gains.

Group CEO Don Wehby attributed the performance to the Company’s “improved agility and the successful execution of its strategic initiatives, notwithstanding the challenges presented by the COVID-19 pandemic.”

Group CEO Don Wehby

He said “At the centre of GK’s strategy in 2020 was securing a reliable global supply chain, improving efficiency to better manage costs, as well as providing new delivery channels and innovative solutions for its customers.”

All business segments within the Group recorded increased revenue for 2020 compared to 2019. 

GK’s Food Trading segment saw improved revenue and profitability primarily due to the outstanding performance of its international food businesses. 

Wehby said GraceKennedy Foods (USA) LLC showed a triple digit increase in gross profit and marked growth in revenue, with the Grace and La Fe brands recording growth and improved margins; and GK’s Jamaican food distribution business recorded strong growth in both revenue and pre-tax profit, coupled with improved operating margins. 

The GraceKennedy Financial Group also reported substantial growth in revenues and pre-tax profit in 2020.

Dividends totalling J$1.58 billion or J$1.60 per share were paid out to GK’s shareholders in 2020.