Connect with us

Businessuite Markets

BARGAINS ON HARBOUR STREET Companies going cheap

Published

16 years ago

on

“Those people who step up to the plate with confidence will come out of this crisis very well,”

Michael Lee Chin, Chairman NCB Group.

 

Hit hard by declining earnings, rapid depreciation of the Jamaican dollar, higher than projected interest rates and resulting tightened liquidity, 2008 proved to be the worst in the past six years for the many of the stocks listed on the Jamaica Stock Exchange. Overtaken by developments in the international and local markets, the three JSE indices failed to hold the position held in the early part of the year. Many of the Exchange’s blue chips traded at their lowest levels in 52 weeks as investors sold out and moved away from stocks to money market investments.

The report filed on the Jamaica Stock Exchange website for the end of December indicated that the year’s trading session reflected the following movement of the JSE Indices: –

* The JSE Market Index declined by 27,816.03 points (34.70%) to close at 80,152.03.

* The JSE Select Index declined by 944.23 points (47.57%) to close at 1,984.74.

* The JSE All Jamaican Composite declined by 32,787.93 points (44.31%) to close at 73,994.93.

Overall Market activity resulted from trading in 55 stocks of which 16 advanced, 35 declined and

4 traded firm. Market volume amounted to 2,295,666,264 units valued at over $24,066,168,185.51.

And the trend continues, with more companies trading even lower than the December 2009 closing figures. According to Steven Jackson writing recently in the Caribbean Business Report “The last time the market declined this much was in May 1996 at 12,936 points down 29 per cent year on year. But it is still better than in 1993 when the market lost 65 per cent of its value. It dipped from 32,421 points in January to 11,221 points by January 1994, losing over 90 per cent of its market capitalisation from J$1.45 billion to J$129.8 million according to Bank of Jamaica data.”

According to a leading brokerage firm in a published outlook on the economy for 2009, many of the quoted equity prices appear attractively priced relative to historical values. They also suggest that equity prices may well fall further before a rebound is seen, suggesting that even better bargains are on the horizon.

An interesting point raised by one analyst contact for this article was that “You don’t have to sell a lot of stock to impact price one way or the other.” Suggesting that small stock trades can and have impacted a company’s stock price, which is a concern for many and also implying an opportunity for manipulation. So the big question to be addressed by the Jamaica Stock Exchange is, should small trades be allowed to impact market prices. Businessuite understands that this concern has been raised by some companies. Donette Johnson, Senior Equities Trader at Jamaica Money Market Brokers, in responding to this point indicated that, “As a matter of fact, the JSE has attempted to address the perception of ‘manipulation’ on the market by introducing the average price being used as the closing price for the day. So no longer can brokers use 100 units at 11:59 to close stock prices at higher levels when indeed the market is trading at lower prices (this would give a misconception to investors and cause widespread disharmony among the investing public and even in some instances deter persons from even considering entering the market due to this perception and continued practice by brokers).”

But 2008 was a year when many of the companies listed on the Exchange saw the listed value of their stocks make drastic declines. Volumes traded was also on the high side, where in December for example Cable and Wireless Jamaica Ltd. was the volume leader with 503,461,572.00 units (21.93%) followed by Supreme Ventures Limited with 403,006,606 units (17.56%) and Jamaica Broilers Ltd. with 226,205,373 units (9.85%).

BOJ Impacts Market

According to financial analyst Fayval Williams, one of the contributing factors to the movement away from the stock market was the reversal in the local interest rate trend. Bank of Jamaica began raising interest rates in January, 2008.  Interest rates were adjusted upwards by 1% across all tenors of BOJ instruments and have been rising since then making money market instruments more attractive versus stocks. Donette Johnson Senior Equities Trader Jamaica Money Market Brokers Limited, however saw it differently. “I beg to differ on this point, as interest rates started trending up as soon as the credit crunch hit in September ’08 and financial houses were converting left, right and center in order to meet margin calls being made by overseas brokers. As a result of this pressure to convert to US$ this put added pressure on the J$. So the BOJ responded to stabilise that currency market by increasing local interest rates.”

Another factor argued by Fayval Williams was the weakening economy going forward as investors realized that the US recessions would spill over into Jamaica via remittance, tourism and bauxite sectors. This spelt a more uncertain economic environment and weaker profits for companies, not a good backdrop for stocks.

Other investors have also argued supporting Williams’s view that the high interest rate, initiated by the BOJ impacted the stock market last year as a result investors not able to realise the comparable 25% return on stock investments shifted by selling stocks and putting the money in high BOJ induced interest rates. It was even argued by some that the actions by investors looking forward were pre-emptive as they opted to move funds now rather than wait in an uncertain environment.

With the prevailing tight liquidity conditions on the international markets, the Government of Jamaica has increasingly turned to the local market to meet funding requirements.  This creates added impetus for further increases in interest rates locally and movement away from stocks. (Note: interest rates started to trend downwards sometime in March).

Marlene Street-Forrest General Manager of the Jamaica Stock Exchange was recently quoted as saying “Hardly any analyst would be able to say to you specifically when you are going to see a recovery. We are hoping it will rebound by next year but I have not applied any scientific basis.” (Did you ask Mrs. Street-Forrest for a guesstimate on the performance of the indices this calendar year end 2009?).

Street-Forrest blamed the ongoing decline in market performance on the global meltdown, high interest rates and its crippling spill over effect on company earnings in 2008.

“We have seen share prices at one of the lowest in recent times. This can be accounted for by the general bear market that we have seen that has continued over the last two years and has been coupled by the global financial crisis. Also, some of the companies financial returns posted lower than projected,” she said adding that now is the time to buy stocks.

The economic environment will affect the speed of recovery she stated, adding that the 2009/10 budgetary measures are being analysed to determine its effect on business.

The role of interest rates

“Interest rate reduction will play a factor in the demand for stocks. Next we are looking at the situation in the global arena and the recovery in overseas equity markets. Markets are based on confidence and the extent that investors feel there is more risk in the equities market then they will tend to shy away from it,” she argued.

As one high profile trader indicated “Stocks go up when companies are reporting rising profits but companies were reporting negative company profits going forward as people were buying and consuming less so this was also a contributing factor in my shifting funds away from stocks last year.”

Consumer Confidence Falls

The recently published Jamaica Chamber of Commerce (JCC) consumer confidence report said consumers judged the current state of the economy more negatively than the third quarter of 2008, these downbeat assessments did not cause pessimism about future economic prospects, It was reported that one third of all consumers at the close of 2008 felt that the economy had worsened, up from one in four at the start of the year. At the same time the proportion of consumers that anticipated better conditions remained largely unchanged, the report added.

However, Professor Richard Curtin, head of survey research unit at the University of Michigan, sees the optimism as somewhat surprising given the global economic slowdown and Jamaica’s dependence on tourism and remittances. “Consumers do not expect the kind of slowdown in the economy that I think is going to happen,”

Companies respond

As early as mid 2008 it was quietly reported that companies had already started to respond to the reduction in their income and profitability by laying off staff, seeking increased efficiencies in operation and purchases coupled with the overall use of assets. Going forward into 2009 and early 2010 financial institutions will see a further slowing down of their earnings as loan portfolios are not expected to grow at previous pace due to all the aforementioned factors. Manufacturing companies it is argued should benefit from moderation in prices, but will be adversely affected as consumers cut back on consumption due to lower disposable incomes.

Pessimistic Outlook Hides Value

“Wealth is created by owning businesses”.

Michael Lee Chin, NCB Group Chairman in a recently published article in the Caribbean Business Report recalls that about 10 years ago many Jamaican assets were snapped up by our Caribbean ‘brethren’ but with stock prices down all over the world he believes Jamaican companies now have an opportunity to buy back those companies and continue to make them profitable.

“If you are a foreign investor who bought a Jamaican asset 10 years ago, even though the asset as measured in Jamaican dollars has done well, by foreign currencies and hard assets that’s a different matter.

If you look at stock prices of the likes of Caribbean Cement, NCB, Grace, Guardian, they are now low. The question though is: who has money to acquire these assets? Who is liquid? Well, our pension funds are liquid. Our pension funds have gotten into the habit of investing in repos and government paper. Now that is not investing.

The pension managers are not optimising the wealth creation portion of their portfolios. Over the long haul, equities have always proven to be the best asset class, so now is a great time to be buying them because they are historically cheap.”

Where are they?

But where exactly are the bargain buys? Michelle Hirst, Research Manager at Stocks & Securities Ltd (SSL) thinks the following stocks are at bargain BUYS, plus just as important, strong business models, strong barriers to entry, strong management and above average long-term growth rates with a proven track record:

o   Pan-Jamaican Investment Trust

o   GraceKennedy

o   Salada Foods Jamaica Ltd

o   Jamaica Producers

o   Jamaica Broilers Group

o   Scotia Group Jamaica

o   Desnoes & Geddes

However, she continues “ we do think that local equity prices still have an inherent short-term (one year or less) downside risk of 20-30% from current price levels, dependent on how worse the credit crisis gets, recession, etc, where the DOW heads to, which we anticipate to be 6,600 points or less.

Therefore, although SSL does not advise clients to try and time the market, we recommend to cautiously BUY the above levels/positions and if we see for example Pan-Jam trade down to 18-20, we would recommend more aggressive purchasing here.

Also note another negative that always affects our market in the short-term is high interest rates as investors’ put funds to work in fixed income v. local equities. For the long-term YES the above equities show strong value at current prices meaning an investor to hold for 3 years or longer from “t”.”

According to one leading brokerage firm, unless there are clear signs of recovery in corporate profits, stability in the foreign exchange markets and lower interest rates, causing stock prices to move back up, investors will not go back to the equities market. They also suggest that if the local dollar continues to depreciate at its current pace, the possibility still exist that interest rates could go higher.

So with corporate profits expected to weaken in 2009 as further softening in consumer spending take place the projection is for flat market conditions in 2009.

For many this downward movement in stock prices was a direct response to the local and global economic crisis, the upward shift in interest rates and the continued fallout from the failed alternative investment schemes. But for the calculated few with cash, this is an opportunity to make a move on some bargain buys on Harbour Street. The expectation is that the present financial crisis will be over before the end of 2010 if not before, so buying these companies now and holding the stock until they move rapidly back up will give cash hoarding investor’s significant return on their investments. The big question now is other than institutional investors, who has that kind of cash? BM

Additional Source; Compiled from various published and internet sources

Related Topics:
Continue Reading
Click to comment
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Businessuite Markets

R.A. Williams Distributors Experienced 8% Decline In GP Margin Due To Lower Margins On Government Sales

Published

4 days ago

on

March 16, 2025

By

Audley Reid CEO R.A. Williams Distributors Limited has released the following unaudited financial results for the third quarter ended January 31, 2025, prepared in accordance with IFRS Accounting Standards.

FINANCIAL PERFORMANCE

Revenues for the quarter totalled $438.9 million, up from $380.8 million in the same period last year, demonstrating sustained strong demand for our products. However, the Company experienced an 8% decline in gross profit margin, which stood at 46% for the quarter, primarily due to lower margins on government sales. The net profit margin after tax was 3%, compared to 16% in the prior year, demonstrating our ability to maintain profitability despite market challenges.

Operating expenses as a percentage of revenue increased to 40%, up from 33% in the previous year, mainly due to increased costs related to the right-of-use for our New Brunswick Village location, depreciation on acquired assets, and higher staffing and distribution expenses. Additionally, total assets grew by 56% year-over-year, signalling a positive trajectory and reflecting the ongoing progress of our strategic initiatives as we continue to execute them over the medium to long term.

PRODUCT LAUNCHES AND MARKET EXPANSION

This quarter marked a significant milestone with the official launch of Iracet (Levetiracetam 500 mg), a key addition to our product portfolio. As the first generic of its kind on the Jamaican market, this antiepileptic drug has received a positive response from the medical community. By the end of the quarter, Iracet was also made available at National Health Fund’s Drug-Serv Pharmacies, greatly expanding access for patients. This marks a major achievement in our mission to improve patient outcomes through affordable and accessible medications. In addition to Iracet, we introduced several products under our partnership with Fourrts. These include Cofex, an over-the-counter cough and cold remedy, as well as Sucrafil and Sucrafil-O, prescription medications used in the treatment of stomach ulcers and hyperacidity. These additions further strengthen our diverse product offering and position us to meet the growing needs of the healthcare market.

Furthermore, our Ryvis product line, launched in May 2024, continues to gain momentum. We are excited to announce the upcoming addition of 21 prescription drugs, spanning areas such as pain management, gastrointestinal health, cardiovascular care, and antibacterial treatments. This expansion enhances our market position and supports our strategy to provide comprehensive healthcare solutions for patients and healthcare providers.

OUTLOOK

As we continue to expand our product portfolio and strengthen our market presence, we remain focused on delivering value to our stakeholders. We are confident in our ability to navigate the evolving healthcare landscape, leveraging our diverse offerings and strong industry partnerships. We look forward to building on our successes in the coming quarters and achieving sustained growth.

Audley Reid CEO R.A. Williams Distributors Limited

For More Information CLICK HERE

Continue Reading

Businessuite Markets

Lumber Depot Associate, Atlantic Plumbing And Hardware To Offer 20% Of Its Share Capital To Raise JA$500 Million In Planned IPO.

Atlantic is engaged in the supply of plumbing and hardware items to retail hardware establishments across Jamaica. Atlantic has a well-established position in this important market segment and will continue to focus directly on this business. Atlantic has performed generally in line with expectations and contributed $12.2 million to the year-to-date profit of the business.

Published

4 days ago

on

March 16, 2025

By

Jeffrey Hall Chairman Lumber Depot Limited has released the following results of the operations for the nine-month period ended January 31, 2025.

Lumber Depot generated net profits of $118.85 million on revenues of $1,134.95 billion. Our annual return on equity continues to be strong and exceeds 15%.

Although our business remains strong and highly competitive, the prevailing economic circumstances have led to some softening in sales (down 2.07% relative to the prior year) coupled with necessary increases in selling, general and administrative costs. As a result of these factors, profit before tax was down 3.94% relative to the prior year profit before tax of $126.15 million.

Lumber Depot operates a full-service hardware store in Papine that serves the needs of large and small scale building contractors, as well as homeowners doing construction projects, renovations and repairs. The Lumber Depot business has been in operation for over 20 years and during this time has established a market leading position in the communities we directly serve and a strong reputation for excellent service and good value across the wider corporate area.

We consider our location in Papine to be an important part of our success. The facility in Papine is now owned by the company. Papine is a vibrant and fast-growing university community that also serves as a main access point to the St. Andrew hills. Our location is immediately within the most trafficked part of the community, is purpose-built and well established. Over the course of this year, we improved the facility in Papine through investments in our buildings and yard space.

Notwithstanding the strong market position of our Papine location, Lumber Depot has concluded that its long-term profit growth will benefit from investment in selective, other opportunities within the hardware industry, but outside of the core Papine location. This focus on growth opportunities led to the acquisition by Lumber Depot of a 35% interest in Atlantic Plumbing and Hardware Limited (“Atlantic”). Atlantic is now an associated company of Lumber Depot and representatives of Lumber Depot have been appointed to its board.

Atlantic is engaged in the supply of plumbing and hardware items to retail hardware establishments across Jamaica. Atlantic has a well-established position in this important market segment and will continue to focus directly on this business. Atlantic has performed generally in line with expectations and contributed $12.2 million to the year-to-date profit of the business. Subsequent to the acquisition of our interest, Atlantic has relocated to a new and improved sales and warehousing facility on Marcus Garvey Drive and overhauled its information technology systems to strengthen its inventory control and service levels.

During the Lumber Depot fourth quarter, Atlantic intends to offer new shares amounting to 20% of its share capital on the Junior Market of the Jamaica Stock Exchange and in so doing, raise $500 million. The proceeds of this initial public offer will be used to reduce the debt and debt service costs of Atlantic and to support the overall growth of the business. The initiative will also reduce the income tax charge on the company and generally improve its business prospects. Lumber Depot intends to participate in the offering.

We are pleased that despite the current challenges Lumber Depot continues to trade positively and to deliver strong results and, importantly, to maintain excellent service levels and customer endorsements. Our strategy is to consistently offer competitive prices on our products and to maintain our service standards and inventory availability.

We will continue to judiciously manage our cash with a view to paying solid dividends and improving shareholder returns. Our board and management is also committed to maintaining the financial capacity to boldly seize and execute on the expansion and acquisition opportunities that we expect to arise once construction growth resumes.

For More Information CLICK HERE

Continue Reading

Businessuite Markets

Single Tax Rate on Dividends to Attract Investors To Jamaica

“When you hear non-resident companies and non-resident individuals, don’t immediately think foreign companies or foreign individuals. These may also be companies registered abroad that are owned by Jamaicans. There are also Jamaican individuals who live abroad in countries that have lower dividend rates that receive dividends from Jamaican companies,” she explained.

Published

4 days ago

on

March 16, 2025

By

The Government of Jamaica will be applying a single tax rate of 15 per cent to dividends for resident and non-resident companies and individuals, which is expected to make Jamaica more attractive to both local and foreign investors.

Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure when she opened the 2025/26 Budget Debate in the House of Representatives on March 11.

Mrs. Williams said Jamaica has had a difference in the tax rate on dividends for resident companies and individuals, which is 15 per cent, and for non-resident companies and non-resident individuals, it is 33 1/3 per cent and 25 per cent, respectively.

“When you hear non-resident companies and non-resident individuals, don’t immediately think foreign companies or foreign individuals. These may also be companies registered abroad that are owned by Jamaicans. There are also Jamaican individuals who live abroad in countries that have lower dividend rates that receive dividends from Jamaican companies,” she explained.

The Minister said that reducing tax on dividends and establishing one rate for resident and non-resident companies and individuals of 15 per cent will encourage investments in Jamaica.

“This benefit is one way to say to those Jamaicans who have companies abroad in jurisdictions with lower dividend tax rate than what currently prevails, we are saying to them, we are lowering the rate for you. Bring your capital back to Jamaica,” the Minister said.

By: Rochelle Williams, JIS

Photo: Adrian Walker

Continue Reading

Businessuite Markets

GraceKennedy Delivers Strong Financial Performance in 2024

On the heels of the strong results, GK Group CFO Andrew Messado has announced GK’s first dividend payment for 2025, with J$0.55 per stock unit declared, payable on April 7 and totaling approximately J$543 million. In 2024 GK made a total dividend payout of approximately J$2.35 billion.

Published

4 days ago

on

March 16, 2025

By

For the period, GK realized revenue of J$167.0 billion, an increase of 7.8% over 2023, while profit before tax (PBT) for 2024 rose to over J$12.3 billion, an increase of 8.6% when compared to prior year.

In 2024 profit before other income increased to i$8.0 billion, representing a 6.0% increase, and profit after tax totalled J$8.9 billion, compared to J$8.4 billion in 2023, an increase of J$485 million or 5.8%. Net profit attributable to stockholders was i$8.4 billion, 8.1% or J$633 million higher than the corresponding period of 2023. Earnings per stock unit for the period was J$8.52 (2023: J$7.86).

In 2024 GK’s total dividend pay-out was approximately J$2.35 billion. Building on our strong 2024 performance and consistent with our Company’s commitment to deliver value to our shareholders, we are pleased to announce GK’s first dividend payment for 2025. A dividend ofJ$0.55 per stock unit has been declared, totalling approximately J$543 million, payable on April 7, 2025.

Performance of Business Segments

Food

Our food division achieved growth in 2024, delivering increased revenue and profit compared to 2023.

Our Jamaican food distribution business delivered a robust performance, with Grace Foods & Services achieving growth across key product lines while enhancing operational efficiency, which positively impacted its bottom line. The expansion of distribution points, coupled with targeted promotions and improved customer engagement, drove strong results for both World Brands Services and Consumer Brands Limited.

Our manufacturing business also delivered improved results compared to prior year, led by a strong performance from Dairy Industries Jamaica Limited (DIJL) and Grace Foods Processors (NALCAN). In 2024, DIJLs products outperformed expectations in both the food service and retail sectors, while NALCAN achieved notable gains in efficiency and throughput. Our most recent acquisition, Unibev Limited, also performed well, surpassing its targets. While Grace Agro-Processors’ performance was negatively impacted by the passage of Hurricane Beryl and multiple periods of drought and intense rainfall affecting Jamaica in 2024, it demonstrated remarkable resilience, adapting effectively to maintain operations.

Our Jamaican supermarket chain, Hi-Lo Food Stores, delivered a commendable performance while pursuing expansion opportunities. Committed to enhancing the shopping experience for its customers, Hi-Lo has been renovating its stores, with recent upgrades completed at its University of the West Indies (UWI) Mona campus and Manor Park locations. Renovations are also underway at its Spanish Town, St. Catherine, and Church Street, Montego Bay locations, further elevating Hi-Lo’s commitment to being the leading Jamaican supermarket for customer experience.

Our international food businesses delivered strong results in 2024, led by impressive revenue growth from Grace Foods UK Limited, driven by the outstanding performance of key product lines in the British market, including Nurishment. In the US, revenue saw an uptick compared to 2023, with growth in the La Fe and Grace brands. Grace Foods Canada produced impressive results compared to prior year, delivering significant growth in both its top and bottom line.

Financial Services

The GraceKennedy Financial Group continued to grow in 2024, delivering increased revenue and profit compared to prior year.

This improved performance was driven by strong results from our banking and investment segment. First Global Bank Limited, our Jamaican commercial bank, surpassed its 2023 revenue and PBT, primarily attributable to notable growth in its loan portfolio, increased investment income, and effective cost management.

GK Capital Management our investment and advisory arm in Jamaica, also achieved higher revenue and profit when compared to prior year, benefiting from a significant improvement in its equity trading portfolio.

Our insurance segment also delivered positive results, with GK General Insurance Company Limited (GKGI) and Canopy Insurance Limited both exceeding revenue and PBT over prior year. GKGI remained committed to driving revenue growth through strategic partnerships, with its collaboration with Scotia General Insurance Agency Limited as the underwriter for ScotiaProtect, resulting in a notable increase in written premiums in 2024.

GraceKennedy Money Services (GKMS) experienced a decline in revenue and PBT compared to 2023, largely due to reduced transaction activity and lower remittance flows in key markets, particularly Guyana.

With margins tightening across major territories, we remain focused on transforming the GKMS business model by investing in cost-effective digital solutions. In May, GraceKennedy Remittance Services launched its first ‘digital sub agent’ in partnership with Lynk Jamaica, which has since seen steady growth in usage.

Our GK One app also solidified its status as Jamaica’s leading digital wallet for remittances in 2024, with strong growth in its number of users and a strong repea usage rate. We continue to innovate, improving the app’s features and functionality to better serve our customers. In October, through GKGI, we launched the third-party insurance product in the GK One app, allowing access to policies and the ability to make changes through the app, a first in the Jamaican insurance industry. In December, we introduced direct-to-wallet functionality to the app, enabling remittance senders to transfer funds directly to a GK One user’s mobile wallet.

Share Buy Back

Our share buyback programme, which began in November 2023, concluded in November 2024. During the period, GK repurchased J$6.4 million of our Company’s outstanding shares. The repurchase of shares was conducted on the open market through our stockbrokers in Jamaica and Trinidad & Tobago, using cash reserves.

We Care

In the final quarter of 2024, we launched several key initiatives through our Environmental, Social and Governance (ESG) programme, reinforcing our commitment to GK’s We Care ethos.

In October, our GK Foundation (GKF) ESG in Action forum showcased how the work of our GK-funded UWI Professorial Chairs in Management and Environmental Management, aligns with our ESG agenda. In November, we donated J$10 million to strengthen agricultural resilience in St. Elizabeth, one of the regions in Jamaica hardest hit by Hurricane Beryl. This included a contribution for a new generator at the Hounslow water pumping station, benefiting 360 farmers, and donation of agricultural supplies. GKF also awarded over J$27 million in scholarships to 78 Jamaican tertiary students and supported the Kingston Harbour Cleanup Project’s Great Mangrove Trash Tournament, removing over 18,000 pounds of waste from the Harbour.

In November, our Grace & Staff Community Development Foundation (Grace & Staff) celebrated the 10th anniversary of its STEM Centre in Downtown Kingston at an Open Day during which students and teachers were engaged in hands-on STEM activities. In December, Grace & Staff’s Christmas outreach delivered care packages to 1,000 senior citizens in Kingston and St. Catherine, with the support of over 100 GK volunteers.

Recognition and Awards

We continued to demonstrate excellence in corporate governance, earning multiple recognitions at the Jamaica Stock Exchange (JSE) Best Practices Awards in December. In the PSOJ/JSE Corporate Governance category for companies listed on the JSE Main Market, GraceKennedy Limited was named first runner-up and our subsidiary, Key Insurance Company Limited was second runner-up. GraceKennedy Limited was also second runner-up in both the Annual Report and Best Website categories.

Leadership Changes

On February 14, 2025, the Honourable Don Wehby, CD, OJ, retired from his role as Group CEO and stepped down from the Board of Directors of GraceKennedy after an exemplary and distinguished tenure. We again extend our heartfelt thanks to Don for his leadership and unwavering dedication to the Company for over three decades. GraceKennedy Limited. Frank James was appointed the new Group CEO of GraceKennedy Limited and to our Board of Directors. Frank has served as the CEO of GK Foods — Domestic, Group CFO, and in several other senior roles in both our food and financial services divisions since joining GK in 2005.  Also, on February 14, Andrea Coy, CEO of GK Foods — International, was appointed CEO of GraceKennedy Foods, unifying the domestic and international segments of our food division under her leadership. Later this year, Grace Burnett will retire as CEO of GKFG, effective August 14, 2025, after an outstanding and dedicated 25-year career at GK. Upon her retirement, Steven Whittingham, the current Deputy CEO of GKFG, will assume the role of CEO of GKFG. The Board of Directors of GraceKennedy Limited is confident that GraceKennedy will achieve even greater success in the years ahead under their leadership.

For More Information CLICK HERE

 

Businessuite Top 100 Caribbean Companies and CEO – 2024 Digital Edition

Continue Reading

Businessuite Markets

Scotiabank Trinidad And Tobago Balanced Mix Of Assets Successfully Generates Additional $48 Million.

“The Group has embarked on the 2025 financial year with a commendable performance, reflecting the robustness of our strategy in a highly competitive market. We continue to strategically optimize our balance sheet. Our balanced mix of assets has successfully generated an additional $48 million, a notable 13% increase in Interest Income compared to the first quarter of 2024.

Published

4 days ago

on

March 16, 2025

By

Scotiabank Trinidad and Tobago Limited (The Group) reported Income After Taxation of $167 million for the quarter ended 31 January 2025, an increase of $2 million or 1% compared to the performance for the 3 months ended 31 January 2024. Return on Equity (ROE) of 14.5% and a Return on Assets (ROA) of 2.2% were unchanged from the prior year. Based on these financial results, Scotiabank Trinidad and Tobago Limited is pleased to declare a dividend of 70 cents per share for the 1st quarter. Earnings per Share (EPS) increased to 94.4c with a solid Dividend yield of 4.98%, rewarding our shareholders for their continued trust in our organisation and strategy.

Gayle Pazos, the Managing Director of Scotiabank Trinidad and Tobago Limited, in commenting on the solid performance, remarked “The Group has embarked on the 2025 financial year with a commendable performance, reflecting the robustness of our strategy in a highly competitive market. We continue to strategically optimize our balance sheet. Our balanced mix of assets has successfully generated an additional $48 million, a notable 13% increase in Interest Income compared to the first quarter of 2024. Loans to Customers surpassed $20.9 billion, an impressive growth of $1.7 billion or 9% over the same period in 2024. We continue to be recognized by International Financial organizations and our Bank proudly earned another Bank of the Year title from The Banker Magazine, following recognitions from Global Finance and Euromoney in 2024. This award highlights not only our robust financial performance, but also our innovative approach to banking and our focus on delivering exceptional value to our clients. Looking ahead for the rest of 2025, the outlook looks positive although there are challenges. Despite the projection for continued economic growth, potential challenges exist with heightened geopolitical tensions and a shift in global political dynamics. With our continued focus on leveraging our digital banking capabilities and growing our core operating segments, the Bank is well positioned for sustained growth and I am confident that we will continue to positively respond to the changing economic conditions that impact Trinidad and Tobago.”

 

Revenue

Total Revenue, comprising of Net Interest Income and Other Income, was $494 million for the period ended 31 January 2025, an increase of $13 million or 3% over the prior year. Net Interest Income for the period was $382 million, an increase of $36 million or 10% compared to the corresponding period last year. The main driver was interest from Loans to Customers, increasing by $29 million or 9% based on loan growth, with Customer Deposit Interest costs also increasing by $7 million over the comparable period last year. Investment Securities Interest increased by $20 million or 36%, as our team continued to manage liquidity while securing higher earning investment opportunities to generate additional interest income. As of 31 January 2025, Other Income of $111 million decreased by $23 million primarily due to lower trading revenues, in line with industry challenges and prevailing market conditions. This was partially offset through increased Insurance and Wealth revenue streams.

Balance Sheet

Total Assets were $31.2 billion as at 31 January 2025, an increase of $1.1 billion or 4% compared to the prior year. Loans to Customers, the Bank’s largest interest earning asset, was $20.9 billion as at 31 January 2024, an increase of $1.7 billion or 9%. Our Investment portfolio (Securities and Treasury Bills) stood at $6.5 billion as at 31 January 2025, an increase of $451 million or 7%. Our portfolio return has improved over prior year, as we continue to seek opportunities both locally and internationally, to optimize current market conditions and invest in higher earning assets. Total Liabilities increased to $26.5 billion, $232 million or 1% over the same comparable period in 2024 with Deposits from Customers increasing by $932 million or 4%. Our Deposit portfolio has grown in both the retail and commercial segments and is key to providing stable funding for our credit expansion.

Dividends and Share Price

The Group continues to provide a healthy return to our shareholders. A dividend of 70c was declared for the 1st quarter, consistent with the last 3 quarters. This resulted in a payout ratio of 74% and an improved dividend yield of 4.98%, an increase of 63 bps.

Return on Equity and Return on Assets

Return on Equity of 14.48% and Return on Assets of 2.16% remain in line with the average return over the last 5 years.

Gayle Pazos Managing Director of Scotiabank Trinidad and Tobago Limited

For More Information CLICK HERE

 

Businessuite 2024 Top 100 Caribbean Companies – US$  Revenue   

 

Businessuite 2024 Top 100 Caribbean Companies – Profit after Tax        

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x