Orane
GRACE, KENNEDY & Company's unaudited figures show that all but one of the group's divisions, the food trading arm, saw profits rise in the six month period to the end of June 2000.
Group revenues were slightly higher at $7 billion, while net profit rose from $280 million to $337 million. This represents earnings per stock unit of $1.87(1999-$1.55), an increase of 20.6 per cent.
The food trading division showed mixed results, according to a release from the company late yesterday. The Grace merchandise arm will look to cut expenses and improve efficiencies in the second half of the year. The Grace brand saw international sales rise from US$9 million to US$9.8 million.
Major food trading arm client Unilever has said it will sever its distribution deal with Grace as of January 1, 2001. Grace said the termination of the relationship, which began in 1978 would not affect this year's operating results.
Mr. Orane said recently that he expected the departure of Unilever to cost the Group about $460 million in annual sales and $70 million in profit.
Yesterday's statement said the revenue contribution for the first half of the year from the distribution of Unilever products was $228 million, with profit contribution coming in at approximately $30 million, some 6 per cent of the Group's half year pre-tax profit of $495 million.
As a result of losing Unilever's business Grace will now have "significant spare capacity to sell a broad range of other products". Plans are well underway to replace the lost revenues the company said.
The financial services division performed well, continuing to demonstrate significant growth in profits compared with the first half of 1999. George & Branday, the Group's merchant banking arm is showing steady growth in assets under management.
