GraceKennedy Group CEO, Don Wehby, says the company is on track to meet its financial targets this year.
For the three-month period ending September 30, the company achieved revenues of J$29.59 billion and net profit of J$1.88 billion.
This compares to J$25.54 billion in revenue and J$1.44 billion in net profit in 2019.
Revenue for the nine-month period ended September 30, was at J$86.1 billion, an increase of 11.8 per cent or J$9.09 billion over the corresponding period in 2019.
Earnings per stock unit over the nine-month period was J$4.47, and stockholders’ equity increased by J$4.17 billion to J$56.5 billion.
Group CFO, Andrew Messado has announced a dividend payment of 55 cents per stock unit, payable on December 15, totalling approximately J$545 million.
Wehby, in remarks attached to the results said the company is performing “extremely well in the face of market uncertainty caused by COVID-19. We have undertaken several risk management initiatives and have significantly improved our operating efficiency. We are also offering several new delivery channels for our products and services.”
The company reports that both GraceKennedy’s local and international food businesses recorded strong performances when compared to the corresponding period in 2019, with notable improvements in revenue, operating margins and pre-tax profits, driven by higher sales in core products, elevated demand and expanded distribution channels.
Locally, GK’s chain of supermarkets, Hi-Lo Food Stores recorded increases in revenue and year-to-date profitability.
GK has announced it will continue upgrades to its Hi-Lo locations in 2021 and will relocate to a new location in Negril.
The Group’s manufacturing segment also recorded strong performance with Wehby noting the company continues to improve efficiencies through innovation and fostering strategic partnerships.
The Group CEO says GK has also increased its purchase of local produce, bolstering its support of Jamaican farmers who are experiencing reduced demand due to the pandemic.
In the international market, he said GraceKennedy Foods (USA) LLC recorded particularly strong growth, exceeding revenue and profit before tax targets for the third quarter of 2020; and as lockdown measures temporarily eased across the Atlantic, Grace Foods UK’s performance also reflected encouraging revenue growth, with the Nourishment brand continuing to show recovery.
Wehby indicated that the GraceKennedy Financial Group (GKFG) also recorded significant growth in both revenue and profits over the comparable period last year, attributable to the strong performance of its insurance and money services businesses.
In the third quarter of 2020 GK established two new business units – Digital Transformation and Mergers & Acquisitions – as part of its strategic growth initiatives.