GraceKennedy (GK) targets $100 billion-mark in revenues for 2019

Date: March 12, 2019

Highlights of GK’s recent financials for the year ended December 31, 2018 and plans for the upcoming financial year were provided at its’ Investor briefing by Group’s Chief Executive Officer (CEO), Mr. Don Wehby and Group’s Chief Financial Officer, Mr. Frank James. The Group showcased the following highlights for 2018:

 Applied a successful acquisition strategy in which GraceKennedy:

  • Acquired Globe Finance Inc, by associated company in Barbados, CSGK Finance Holdings Limited, through its subsidiary Signia Financial Group Inc.
  • Merger of the Group’s manufacturing plant, Majesty Foods, in the United States which has grown 200%
  • Acquisition of a 35% share and commencement of the distribution of Catherine’s Peak spring water in July 2018

Non-recurring gains from the acquisition of Consumer Brands Limited, the liquidation of a non-operating subsidiary as well as from the successful acquisition of Globe Finance Inc.

Growth in sales of key products such as Corned Beef, Vienna Sausages and Tropical Rhythms beverages

Positive feedback from the new products, Grace Patties and Grace Jerk wings, in the United States.

Growth in the Procter & Gamble portfolio

Mr. Webhy highlighted the following plans for 2019:

Reach the $100 billion-mark in revenue for 2019

The GraceKennedy Group plans to develop a new logistics centre in New Jersey, USA.

With respect to GraceKennedy’s new corporate headquarters, there will be a retail centre within the building that is a Hi-Lo Express as well as GKONE and a Western Union on site.

The distribution division is expected to be expanded to support the growth in the food trading segment

The GraceKennedy Board has approved to pay out dividends four times a year instead of three times

Notably, a delivery service is expected to be established for groceries to be delivered to customers’ homes from Hi-Lo supermarkets that are being affected such as the Barbican location.

Revisiting the business model and strategy for Africa, specifically Ghana in which the Group has found a third party distributor who will be appointed and an agreement established to distribute goods in that location moving forward.

 

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2019-03-12T21:42:18+00:00