Business

GK earns $1.1 billion in Q1 2017

Wednesday, May 17, 2017

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The GraceKennedy Group is reporting an increase in revenue of $1.6 billion to $23.7 billion in first quarter results with growth in both the food trading and financial segments.The company indicates that Grace Foods UK negotiated a new contract with Transgourmet, Europe's second-largest cash and carry and wholesale supplies store which will expand distribution of Grace Foods products on the continent.

Additionally, for the first time, a shipment of Grace Instant Porridges and Sauces was sent to Guatemala, and a trial shipment of Grace Mackerel was sent to Haiti from Grace Foods' Latin America and Caribbean office, it was also noted in a release on the results.

For the period ended March 31, 2017, net profit for the period was $1.1 billion decreasing by $452.2 million or 28.3 per cent over Q1 2016. The fall was primarily due to a non-recurring gain of $423.5 million which was realised on the liquidation of some non-operating subsidiaries for the corresponding period of 2016.

Without this gain, net profit for the current period would have been marginally lower than the corresponding period of 2016 by 2.4 per cent, the company indicated.

The group said the depreciation of the pound sterling negatively affected Grace Foods UK's performance in Jamaican dollars.

Group CEO Don Wehby, in a release on the quarter's results, touted new developments in both the food and financial segments.

He noted that revenue grew for the food trading segment over Q1 2016 driven by higher sales from the Jamaican foods distribution, Hi-Lo Food Stores and the food businesses from Canada and the USA.

“In Foods, we are piloting Tropical Rhythms in the Pollo Tropical Fast Food restaurants in 47 stores along the East Coast of the USA, and expanding our listings of Grace and LaFe products in Walmart, Winn Dixie and Publix outlets across the USA,” said Wehby.

He said that the Financial Group showed increases in both revenue and pre-tax profit over the corresponding period of 2016 due to the performance of the Banking and Investments and Money Services segments.

“First Global Bank (FGB) saw growth in both its loan portfolio and non-interest income, while GraceKennedy Money Services (GKMS) saw increased transaction volumes in the remittance business. The Insurance segment experienced an increase in revenue and a decline in pre-tax profit compared to the corresponding period of 2016,” it was noted.

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