November 10, 2023
GraceKennedy Group Ltd (GK) for the nine months ended September 30, 2023 reported a 10% increase in Revenues totaling $117.81 billion compared to $107.44 billion in the corresponding period last year. Revenues for the third quarter had a 14% increase to close at $39.58 billion compared to $34.85 billion for the comparable quarter of 2022.
• GK’s Food Trading segment reported revenues of $92.37 billion (2022: $85.66 billion), delivering a strong performance year over year.
• The insurance segment reported revenues of $13.04 billion, a 26% growth over last year’s $10.34 billion. According to Management, “the segment sustained growth thoughout the perod. GK General Insurance Company (GKGI) and Key Insurance, surpassed their results from the previous year.
• Money Services and Banking & Investments produced revenues of $6.58 billion (2022: $6.65 billion) and $6.94 billion (2022: $5.91 billion) respectively.
Direct and operating expenses amounted to $111.47 billion (2022: $101.93 billion), this represents a increase of 9% year over year. Consequently, profit before other income increased by 15% to $6.11 billion compared to $5.29 billion for the nine months ended September 30, 2022. The Company booked profit before other income of $1.91 billion for the third quarter versus $1.51 billion reported for the similar quarter of 2022.
Other Income increase by 17% to close at $2.76 billion (2022: $2.36 billion), while Interest income – non-financial services increase by 12% from $423.93 million in 2022 to $474.87 million in the period under review. Interest expense – non-financial services for the period ended September 30, 2023 amounted to $1.21 billion, a 32% increase relative to $919.27 million reported in 2022.
Share of results of associates & joint ventures for the nine months ended September 30, 2023, amounted to $638.41 million, a 18% increase relative to $539.24 million reported in 2022. Share of Results of Associates & Joint Ventures for the third quarter amounted to 114.51 million (2022: $113.54 million).
Profit Before Taxation for the nine months ended September 30, 2023, amounted to $8.77 billion, a 14% increase relative to $7.69 billion reported in 2022. Profit Before Taxation for the third quarter amounted to 2.62 billion (2022: $2.27 billion).
Taxation for the nine months ended September 30, 2023 had a 13% increase to reach $2.37 billion (2022: $2.09 billion) . Net profit attributable to shareholders for the nine months amounted to $6.40 billion, a 14% increase from the $5.60 billion reported in 2022. For the third quarter, Net profit attributable to shareholders was $1.91 billion (2022: $1.65 billion).
Consequently, Earnings Per Share for the nine months amounted to $6.43 (2022: EPS: $5.24), while Earnings Per Share for the quarter totaled $1.78 (2022: EPS: $1.51). The twelve month trailing EPS was $7.81 and the number of shares used in these calculations was 995,177,300.
Notably, GK’s stock price closed the trading period on November 09, 2023 at a price of $70.68 with a corresponding P/E ratio of 9.00x.
Gk noted “ In September GKFG opened its twentieth GK One store at the University of the west indies (UWI) mona campus in Kingston,Jamaica. The stroe has been well-received and is easily accessible to students, staff and residents of the surrounding communities.”
GK noted “ The acquisition of Unibev limited was completed in October, advances our position in the growing spring water market in Jamaica, fortifying our supply chain and building on our recent investments in this space, including our acquisition of 876 spring water and our increased stake in Catherines Peak. Our other 2023 acquisition , Scotia Insurance Caribbean, which has been rebranded as GK life, is also performing very well. GK Life is now operating 13 market across the Caribbean, as we continue to grow our insurance business in the region.”
Balance Sheet Highlights
The company’s assets totalled $218.54 billion (2022: $196.62 billion). The improvement resulted from growth in ‘Investment Securities’ which closed at $51.57 billion (2022: $36.96 billion). Loans receivables also increased year over year to $40.12 billion (2022: $36.80 billion).
Shareholder’s equity was $82.13 billion (2022: $73.52 billion), representing a book value per share of $78.16 (2022: $72.93).
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