March 1, 2024
GraceKennedy Group Ltd (GK) for the year ended December 31, 2023, reported a 9% increase in Revenues totaling $155.00 billion compared to $141.61 billion in the corresponding period last year. Revenues for the fourth quarter had a 9% increase to close at $37.19 billion compared to $34.17 billion for the comparable quarter of 2022.
GK highlighted, “with this result, GK surpassed the US$1 billion revenue mark, a significant milestone on our journey to becoming a US$2.1 billion company by 2030”.
Direct and operating expenses amounted to $146.92 billion (2022: $136.87 billion), this represents an increase of 7% year over year. Consequently, profit before other income increased by 18% to $7.54 billion compared to $6.39 billion for 2022. The company booked profit before other income of $1.43 billion for the fourth quarter versus $1.10 billion reported for the similar quarter of 2022.
Other Income increased by 6% to close at $4.10 billion (2022: $3.87 billion), while Interest Income – non-financial services increased by 22% from $558.77 million in 2022 to $681.68 million in the period under review. As a result, interest expense – non-financial services for the year amounted to $1.72 billion, a 38% increase relative to $1.25 billion reported in 2022.
Share of Results of Associates & Joint Ventures for the year amounted to $774.13 million, a 15% increase relative to $673.19 million reported in 2022. Share of Results of Associates & Joint Ventures for the fourth quarter amounted to $135.72 million (2022: $133.95 million). Profit Before Taxation totalled $11.37 billion, an 11% increase from the corresponding period last year. (2022: $10.24 billion).
Taxation for the year amounted to $2.99 billion, a 14% decrease relative to $2.63 billion reported in 2022. Taxation for the fourth quarter amounted to $622.74 million (2022: $537.54 million).
Net Profit for the year had a 10% increase to reach $8.38 billion (2022: $7.62 billion). Net profit attributable to shareholders for the year amounted to $7.78 billion, a 10% increase from the $7.05 billion reported in 2022. For the fourth quarter, Net profit attributable to shareholders was $1.82 billion (2022: $1.87 billion).
Consequently, Earnings Per Share for the year amounted to $7.82 (2022: EPS: $7.08), while Earnings Per Share for the quarter totaled $1.82 (2022: EPS: $1.88). The number of shares used in these calculations was 995,177,300.
Notably, GK’s stock price closed the trading period on February 29, 2024, at a price of $74.00 with a corresponding P/E ratio of 9.46x.
Balance Sheet Highlights
The company’s assets totalled $219.48 billion (2022: $196.14 billion). The growth is mainly attributed to a 14% increase in ‘Investment Securities’ closing at $54.11 billion.
Shareholder’s equity was $79.08 billion (2022: $72.63 billion), representing a book value per share of $79.50 (2022: $73.00).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.