August 2, 2023
GraceKennedy Group Ltd (GK) for the six months ended June 30, 2023 reported a 8% increase in revenues totaling $78.23 billion compared to $72.59 billion in the corresponding period last year. Revenues for the second quarter had an 8% increase to close at $39.14 billion compared to $36.33 billion for the comparable quarter of 2022.
Direct and operating expenses amounted to $73.89 billion (2022: $68.69 billion), this represents an increase of 8% year over year. Consequently, profit before other income increased by 11% to $4.20 billion compared to $3.78 billion for the six months ended June 30, 2022. The company booked profit before other income of $2.242 billion for the second quarter versus $2.236 billion reported for the similar quarter of 2022.
Other income increased by 18% to close at $1.90 billion (2022: $1.61 billion), while interest income for non-financial services increased by 23% from $255.30 million in 2022 to $313.77 million in the period under review. As a result, interest expense for non-financial services for the six months ended June 30, 2023 amounted to $799.04 million, a 24% increase relative to $643.59 million reported in 2022.
Share of results of associated companies for the six months ended June 30, 2023, amounted to $523.90 million, a 23% increase relative to $425.71 million reported in 2022. Share of results of associated companies for the second quarter amounted to $124.87 million (2022: $101.36 million).
Profit Before Taxation for the six months ended June 30, 2023, amounted to $6.14 billion, a 13% increase relative to $5.43 billion reported in 2022. Profit Before Taxation for the second quarter amounted to $3.05 billion (2022: $2.86 billion).
Taxation for the six months ended June 30, 2023 had a 13% increase to reach $1.66 billion (2022: $1.47 billion). Net profit attributable to shareholders for the six months amounted to $4.19 billion, a 14% increase from the $3.67 billion reported in 2022. For the second quarter, Net profit attributable to shareholders was $2.07 billion (2022: $1.94 billion).
Consequently, Earnings Per Share for the six months amounted to $4.21 (2022: EPS: $3.69), while Earnings Per Share for the quarter totaled $2.08 (2022: EPS: $1.95). The twelve-month trailing EPS was $7.59 and the number of shares used in these calculations was 995,177,300.
Notably, GK’s stock price closed the trading period on July 31, 2023 at a price of $77.10 with a corresponding P/E ratio of 10.16x.
Balance Sheet Highlights
The company’s assets totalled $207.87 billion (2022: $196.66 billion). The improvement resulted from growth in ‘Investment Securities’ which closed at $52.15 billion (2022: $38.03 billion).
Shareholder’s equity was $76.41 billion (2022: $69.79 billion), representing a book value per share of $76.78 (2022: $70.13).
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