March 3, 2022
GraceKennedy Limited (GK) recorded revenue of $129.31 billion for the period (2020: $115.44 billion), a year over year increase of 12%. Revenue is broken down into Revenue from products and services and interest revenue which amounted to $124.69 billion (2020: $111.06 billion) and $4.62 billion (2020: $4.37 billion), respectively.
Revenue for the quarter of 2021 improved by 14% to $33.53 billion (2020: $29.31 billion).
Direct and operating expenses amounted to $121.57 billion relative to $108.11 billion booked in 2020, indicating a 12% growth compared to twelve months earlier. Direct and operating expenses for the quarter amounted to $32.07 billion, up from $27.73 billion for the same quarter in 2020. Net impairment losses on financial assets amounted to $441.64 million, 16% decline from $523.49 million booked twelve months earlier.
As such, profit before other income for the year end amounted to $7.30 billion relative to $6.80 billion booked for the comparative period of 2020. Profit before other income for the quarter closed at $1.41 billion compared to $1.68 billion reported for the quarter of 2020.
Other income for the year-end period rose by 52% to total $4.61 billion (2020: $3.02 billion). While for the quarter, other income closed at $1.89 billion relative to $755.55 million in the prior corresponding period.
Operating profit amounted to $11.90 billion relative to $9.83 billion for the year ended December 31, 2020. Whilst for the fourth quarter ended December 31, 2021, operating profit totalled $3.31 billion relative to $2.44 billion in 2020.
Interest income from non-financial services rose 25% to total $586.29 million compared to $467.87 million reported in the prior year’s corresponding period. Interest expenses from non-financial services amounted to $1.23 billion versus $1.13 billion a year earlier, an 8% increase.
Share of results of associated companies totalled $414.91 million, compared to $543.53 million reported for December 2020.
Pretax profits increased by 20% to approximately $11.68 billion compared to pre-tax profit of $9.71 billion documented for the year ended December 2020. Additionally, GK incurred taxation expenses amounting to $2.74 billion compared to $2.85 billion in the prior corresponding period.
Consequently, net profit increased by 30% to $8.94 billion from $6.86 billion booked for the corresponding period of 2020. For the quarter, net profit closed at $2.71 billion (2020: $1.92 billion).
Net Profits attributable to shareholders amounted to $8.19 billion compared to $6.22 billion in the previous year’s corresponding period. Net profit attributable to shareholders for the quarter amounted to $2.51 billion, up from $1.79 billion booked for the same quarter of 2020.
Total comprehensive income for the year amounted to $10.38 billion (2020: $9.94 billion).
Earnings per share for the period amounted to $8.23 (2020: $6.25), while for the quarter, GK booked an EPS of $2.53 (2020: $1.80). The number of shares used in our calculations is 995,004,356 units. GK’s stock price closed the trading period on March 1, 2022 at $103.01 corresponding to a P/E of 12.51 times.
Balance Sheet Highlights:
As at December 31, 2021, the company’s assets totalled $199.80 billion, 16% more than the $171.70 billion booked a year ago. The improvement resulted from growth in ‘Investment Securities’ and ‘Cash and Deposit’ which closed at $40.48 billion (2020: $33.51 billion) and $30.04 billion (2020: $24.33 billion), respectively.
Total Shareholders’ equity amounted to $67.61 billion which compares to equity of $59.91 billion as at December 2020. As a result, book value per share amounted to $67.94 (2020: $60.21)
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