GK reports 5% increase in year end net profit

Grace Kennedy Limited (GK), for the year ended December 31, 2017, recorded revenue of $92.48 billion for  2017 (2016: $88.27 billion), a year over year increase of 5%. For the quarter, the company increased revenue by 7% to total $23.18 billion (2016: $21.62 billion). The biggest contributor to the group’s overall revenue for the year was income from the ‘Food Trading’ segment which contributed a total of $72.79 billion (2016: $69.07 billion), an increase of 5% relative to the prior year’s corresponding period.

Among the other segments contributing to revenue, ‘Banking & Investments’ increased 8% to total $6.05 billion.

Revenue from ‘Insurance’ amounted to $6.43 billion, an increase of 1%, while ‘Money Services’ brought in $7.855 billion (2016: $7.849 billion), a slight decline year over year by $131.90 million.

Total Expenses amounted to $88.94 billion relative to $84.68 billion booked for the comparable period in 2016, a 5% growth.  Other Income declined 12% to total $2.09 billion (2016: $2.38 billion). As such, ‘Profit from Operations’ amounted to $5.62 billion, a 6% decline year over year from $5.97 billion booked in as at December 2017.

Interest income from non-financial services rose 2% to total $378.21 million compared to $372.28 million reported a year earlier. Interest expenses from non-financial services amounted to $662.86 million versus $676.86 million booked for the corresponding period in 2016, a 2% reduction.

Share of results of associated companies increased by 10% amounting to $484.97 million, compared to $441.15 million reported for the prior year.

Pre-tax profits decreased 5% to approximately $5.82 billion, compared to pre-tax profit of $6.10 billion documented for the previous financial year. GK incurred taxation expenses amounting to approximately $1.05 billion compared to $1.57 billion in 2016. Consequently, net profit increased by 5% to $4.77 billion from $4.53 billion booked in 2016. Net profit for the quarter increased 22% to total $1.02 billion relative to $835.37 million reported in 2016.

Net Profits attributable to shareholders amounted to $4.12 billion compared to $4 billion a year earlier, reflecting a 3% increase.  Net profit attributable to shareholders for the quarter amounted to $801.12 million compared to $697.56 million in 2016. Earnings per share (EPS) for year amounted to $4.14 (2016: $4.03), while for the EPS for quarter was $0.81 (2016: $0.70). The number of shares used in our calculations is 994,886,892 units. Notably, GK’s stock price closed the trading period on March 1, 2018 at $44.01

Total Comprehensive Income for the year amounted to $4.88 billion compared to $5.70 billion in 2016. This was due to a Gain of Remeasurements of post-employment benefit obligations of $58.93 million relative to $664.46 million in 2016.


Balance Sheet Highlights:

 As at December 31, 2017, the company’s assets totalled $129.99 billion, 3% or $3.51 billion more than its value a year ago.  The improvement resulted in part from a growth in ‘Investment Securities’ by $7.98 billion to $31.85 billion (2016: $23.87 billion). Loans Receivables increased $1.62 billion to close at $27.55 billion relative to the $25.93 billion reported in 2016. Receivables also increase of the twelve months to close at $15.85 billion compared to $13.69 billion in 2016.

Shareholders’ equity amounted to $47.01 billion which compares to equity of $43.54 billion as at December 31, 2016.  As a result, book value per share amounted to $47.25 (2016: $43.76).



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