March 2, 2023
GraceKennedy Limited (GK) recorded revenue of $142.93 billion for the period (2021: $129.31 billion), a year-over-year increase of 11%. Revenue is broken down into Revenue from products and services and interest revenue which amounted to $138.18 billion (2021: $124.69 billion) and $4.75 billion (2021: $4.62 billion), respectively.
Revenue for the quarter of 2021 improved by 6% to $35.50 billion (2020: $33.53 billion).
Direct and operating expenses amounted to $136.09 billion relative to $121.57 billion booked in 2021, indicating a 12% growth compared to twelve months earlier. Direct and operating expenses for the quarter amounted to $34.20 billion, up from $32.07billion for the same quarter in 2021. Net impairment losses on financial assets for the year amounted to $347.20 million, a 21% decline from $441.64 million booked twelve months earlier.
As such, profit before other income for the year end amounted to $6.49 billion relative to $7.30 billion booked for the comparative period of 2021. Profit before other income for the quarter closed at $1.16 billion compared to $1.41 billion reported for the quarter of 2021. Other income for the year closed at $3.75 billion (2021: $4.61 billion).
Operating profit amounted to $10.24 billion relative to $11.90 billion for the year ended December 31, 2021, whilst for the fourth quarter ended December 31, 2021, operating profit totalled $2.55 billion relative to $3.31 billion in 2021.
Interest expense closed the year at $1.25 billion, up 2% from the $1.23 billion reported at the end of 2021. Interest income for the year fell 5% to 558.77 million (2021: $586.29 million).
Share of results of associated companies totalled $674.19 million, compared to $414.91 million reported for December 2021.
Pretax profits decreased by 12% to approximately $10.22 billion compared to pre-tax profit of $11.68 billion documented for the year ended December 2021. Additionally, GK incurred taxation expenses amounting to $2.63 billion compared to $2.74 billion in the prior corresponding period.
Consequently, net profit decreased by 15% to $7.60 billion from $8.94 billion booked for the corresponding period of 2021. For the quarter, net profit closed at $1.95 billion (2021: $2.71 billion).
Net Profits attributable to shareholders amounted to $7.03 billion compared to $8.19 billion in the previous year’s corresponding period. Net profit attributable to shareholders for the quarter amounted to $1.81 billion, up from $2.51 billion booked for the same quarter of 2021.
Total comprehensive income for the year amounted to $6.87 billion (2021: $10.38 billion).
Earnings per share for the period amounted to $7.06 (2021: $8.23), while for the quarter, GK booked an EPS of $1.82 (2021: $2.53). The number of shares used in our calculations is 995,128,505 units. GK’s stock price closed the trading period on March 1, 2022 at $79.21 corresponding to a P/E of 11.22 times.
Balance Sheet Highlights:
As at December 31, 2021, the company’s assets totalled $201.00 billion, 1% more than the $199.80 billion booked a year ago. The improvement resulted from growth in ‘Investment Securities’ and ‘Receivables’ which closed at $47.50 billion (2021: $40.48 billion) and $24.00 billion (2021: $20.18 billion), respectively.
Total Shareholders’ equity amounted to $72.00 billion which compares to equity of $67.61 billion as at December 2021. As a result, book value per share amounted to $72.3 (2020: $67.9)
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