GraceKennedy records growth in revenues

The GraceKennedy Group has recorded revenues of J$67.2 billion for 2013, a J$5.9 billion or 9.6 per cent increase over the previous year, the conglomerate has revealed.



All business segments further reported increases in revenue with GraceKennedy's profit from operations increasing by J$857.8 million or 20.4 per cent, Group CEO Don Wehby said.



GraceKennedy saw a profit before tax of J$5.075 billion, marking the first in the company’s history that pretax profits surpassed $5 billion, said Wehby at an investors' briefing in Kingston earlier today.



“That was an increase of J$972 million or 24 per cent increase in pre-tax profits,” he said.



Net profits were, however, flat when compared to 2012 despite the increase in pre-tax profits, due to a one-off change in the company’s deferred income tax in 2012.



Despite the growth in revenues, the Group saw a one-time loss of J$293 million in income as a result of the debt swap programmes. The company saw a 15 per cent revenue growth in international markets from the three continents in which it operates, Wehby said, noting that acquisitions will form a key component of its growth strategy going forward.



GraceKennedy intends to generate half it profits outside Jamaica, he said.



The food segment was the largest contributor to revenue growth, recording J$4.4 billion of the J$5.9 billion, reflecting expansion in both domestic and international markets.



The company also saw growth in its money services and retailing and trading segments.

“Our operating profit margin improved from 6.8 per cent to 7.5 per cent resulting in a 20 per cent increase in profit from operations. This increase in margins is despite the impact of the debt exchanges which negatively impacted our profit from operations,” the company said.



The food trading segment recorded increased profits of over 40 per cent. Money services saw improved profits of over 16 per cent with banking and investment recording increased profits of 6.5 per cent, GraceKennedy said.



tameka.gordon@gleanerjm.com