GraceKennedy revenue rises, profit falls on hurricane costs

GraceKennedy Limited (GK) reported higher revenue but lower profit in 2025, as Hurricane Melissa’s October landfall drove one-off costs and disrupted operations.

The food and financial services conglomerate said revenue climbed 6.4 per cent to $177.8 billion, while net profit fell 18 per cent to 7.25 billion. Profit attributable to stockholders was $6.89 billion, with earnings per stock unit at $7.00, down from $8.52 in 2024.

Management linked the weaker results directly to Hurricane Melissa, which forced the temporary closure of the Grace Food Processors Meats plant in Savanna-la-Mar, Westmoreland. “Whilst GK delivered solid revenue growth in 2025, profitability was primarily impacted by Hurricane Melissa, a devastating Category 5 hurricane which made landfall in Jamaica in October,” the company said in its report to stockholders.

GraceKennedy said most facilities reopened within days, aided by satellite Internet and its GK One digital wallet, which kept remittances flowing while agents were closed. “The strength of our business continuity planning and swift and coordinated response of our GK team were instrumental in our recovery and significantly mitigated the longer-term impact of this extraordinary event,” management noted.

The group also mobilised a $200-million relief programme spanning food, cash, health and education.

Segment results showed international food operations delivering double-digit profit growth in the USA, Canada and the UK, while Jamaica-based profitability softened from logistics costs and the meats plant outage. Financial services posted stronger revenue in insurance and banking, though money services declined amid tighter margins.

GraceKennedy ended 2025 with total assets of $266.6 billion, up from $236.6 billion, and shareholders’ equity of $92.9 billion. Cash and deposits rose 45 per cent to $33.7 billion, while loans receivable increased 14 per cent to $51 billion.

Late in the year, GK agreed to acquire Fonterra’s 50 per cent stake in Dairy Industries (Jamaica) Limited, maker of Tastee Cheese, securing full ownership. The deal closed in January 2026.

Looking ahead, management said it will continue to invest in technology and disaster resilience. “Looking to the year ahead, we will continue to grow our business by driving consumer-centricity and innovation, strengthening operational excellence, building a purpose-driven organisation, and reinforcing our commitment to sustainability,” the company said.

neville.graham@gleanerjm.com