May 12, 2023
GraceKennedy Limited (GK) for the three months ended March 31, 2023:
Revenues increased 8% to $39.09 billion (2022: $36.26 billion).
Expenses increased 7% to 37.13 billion (2022: $34.71 billion)
Profit before other income increased 27% to $1.96 billion (2022: $1.55 billion).
Other income increased 2% to $920.47 million (2022: $898.96 million).
Operating profit increased 18% to $2.88 billion (2022: $2.44 billion).
Share of results of associates and joint ventures increased 23% to $399.04 million (2022: $324.35 million).
Profit before taxation increased 21% to $3.09 billion (2022: $2.56 billion).
Net profit increased 21% to $2.26 billion (2022: $1.87 billion).
Net profit attributable to owners of GK increased 22% to $2.12 billion (2022: $1.73 billion).
Earnings per share (EPS) amounted to $2.13 (2022: $1.74). The trailing twelve-month EPS amounted to $7.45. The number of shares used in the calculations is 995,177,300. GK’s stock price closed the trading period on May 11, 2023 at $77.89 with a corresponding P/E ratio of 10.45x.
Management Notes: “GK has been successful in executing strategic initiatives to address headwinds including inflation, higher interest rates, fluctuating foreign currency markets and the increased costs of inputs. We have focused on improving efficiencies, cost controls, and customer engagement, and closely managing the cost of funding and raw material sourcing, which has enhanced our operating performance. We have also seen improvements in logistics and freight rates and anticipate that this trend will continue in the coming months, to the benefit of our business.”
Balance Sheet Highlights:
Total assets as at March 31, 2023 increased 2% to $202.61 billion (2022: $198.58 billion). This movement was primarily due to a 19% increase in ‘Investment Securities’ to $45.74 billion (2022: $38.59 billion).
Shareholders’ equity as at March 31, 2023 increased 8% to $74.68 billion (2022: $69.11 billion) resulting in a book value per share of $75.04 (2022: $69.44).
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