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GraceKennedy 2022 Q1 Results Reflect Continued Efforts To Successfully Navigate Myriad Challenges In Various Jurisdictions

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Donald G. Wehby, Group Chief Executive Officer at GraceKennedy (GK) has released the following report on the company’s financial results for the first quarter of 2022.

For the three months ended March 31, 2022, GK achieved:

  • Revenues of J$36.26 billion, representing an increase of 15.5% or J$4.86 billion over the corresponding period in 2021.
  • Profit before other income was J$1.55 billion, a $26.6 million or 1.74% increase over prior year.
  • Profit before tax (PBT) was J$2.57 billion or $53.9 million higher than the corresponding period in 2021;
  • while net profit after tax was J$1.88 billion, representing an increase of 2.1% or J$39.4 million over prior year.
  • Net profit attributable to stockholders was J$1.74 billion, 4.9% or J$81.7 million higher than the corresponding period in 2021.
  • Earnings per stock unit for the period was J$1.75 (2021: J$1.67).

These results reflect our continued efforts to successfully navigate the myriad challenges we face in the various jurisdictions where we operate around the world, including global inflationary pressures, rising interest rates and supply chain and logistic challenges.

Our revenue remains robust and profits for three of our four business segments increased when compared to the corresponding period of the prior year.

Given the current geopolitical climate and ongoing COVID-19 pandemic, our outlook for the remainder of 2022 remains cautious; however, we are resolute in the execution of our strategic initiatives, while remaining agile in order to mitigate the impact of any headwinds on our business.

GraceKennedy Q1 Results Reflect Continued Efforts To Successfully Navigate Myriad Challenges In Various Jurisdictions Including Global Inflationary Pressures, Rising Interest Rates And Supply Chain And Logistic Challenges.

Performance of Business Segments

Foods

GK’s Foods recorded an overall growth in revenues and PBT when compared to the corresponding period of 2021. However, there were mixed results across its various divisions as the businesses continued to manage logistics issues including delays in the supply chain and port congestion, as well as margin pressures.

Our Jamaican food distribution business maintained its momentum from 2021, recording growth in both revenues and pre-tax profits. Core products, including Tropical Rhythms beverages, Grace Ketchup, Grace Coconut Milk Powder, Grace Vienna Sausages and Grace Frankfurters, demonstrated notable growth. This was coupled with the very strong performance of our Caribbean Choice brand, Spring Time laundry products, and Grace Sardines.

World Brands Services (WBS) continued to rebound, recording mid to high double-digit growth in both revenues and PBT. This was attributable to more distribution points being added by WBS throughout Jamaica, which resulted in double-digit growth in key brands.

The resumption of in person classes in Jamaican schools earlier in the year has also been a contributing factor to the improved performance of brands such as Frito-Lay, Mars, and Capri-Sun, which are distributed by WBS.

Jamaica-based Consumer Brands Limited (CBL) also reported double-digit growth in revenues and PBT. Notwithstanding this improved performance, CBL continues to experience inventory challenges for some key products, as global supply chain issues persist.

GK’s chain of Jamaican supermarkets, Hi-Lo Food Stores, recorded strong growth in revenues and PBT, as its initiatives focused on service levels and customer satisfaction continue to yield positive results.

GK’s Manufacturing Division also achieved growth in revenues and PBT, despite significant shipping delays and the rising cost of raw materials and packaging.

The demand for Grace brands remained strong during the period under review.

Our International Foods business recorded an improvement in revenue over prior year, however there was a decline in PBT primarily due to significant charges incurred arising out of shipping and port delays in the United States.

GraceKennedy Foods (USA) LLC (GK Foods USA) exceeded prior year’s revenues, however due to shipping logistics costs, profits for the period were negatively impacted. Measures have been implemented to mitigate a recurrence of this going forward. GK Foods USA has benefitted from the growth of the La Fe brand, and the Grace brand also continues to resonate with shoppers, particularly our canned fish and meats. New products such as Tropical Rhythms in the tetra pack and Grace Peanut Punch exceeded expectations.

Grace Foods UK Limited continued its positive trajectory, recording growth in both revenues and PBT. This performance was bolstered by the recovery of the food service industry as COVID-19 restrictions eased in the UK. The newly relabelled Encona sauces have recently hit shelves and we anticipate a positive reception.

Grace Foods Canada Inc. closed the quarter with revenues above prior year while PBT was affected by freight and other supply chain related cost increases. The growth in revenue came mainly from key products such as Grace Coconut Water, Grace Rice and Nutrament. Our new offering Grace Jerk Wings also performed well, in addition to meal replacement products such as Grace Peanut Punch and Vitamalt.

Financial Services

The GraceKennedy Financial Group (GKFG) delivered a positive performance for the period, recording growth in revenues and PBT when compared to the same period of 2021.

Our Banking and Investments segment yielded positive results led by GK Capital Management Limited (GK Capital), the investment and advisory arm of GKFG, who had an exceptional start to 2022.

GK Capital acted as the principal broker for two successful Initial Public Offerings (IPOs) – Spur Tree Spices Jamaica Limited and Jamaica Fibreglass Products Limited in January and March, respectively. The company also sustained its focus on expense management during the period and realised noteworthy growth in both revenues and PBT as a result.

In February, approval was received from the Financial Services Commission in Jamaica for our mutual fund offering from GK Mutual Funds Limited, which is expected to launch to the public by the third quarter of 2022.

SigniaGlobe Financial Group Inc., GK’s jointly owned merchant banking business in Barbados, reported encouraging results evidenced by double digit growth in revenue and PBT.

Our Jamaican commercial bank, First Global Bank Limited (FGB) achieved growth in both its loan and deposit portfolios during the period and continues its focus on strengthening relationships and expanding its digital offerings to its customers.

GK’s Insurance segment also recorded a positive performance.

GK General Insurance Company Limited (GKGI) outperformed its prior year revenues due to growth in its core business portfolios. The company aims to drive continued revenue growth through innovation and expanding its digital footprint through “GKGOnline” and internal system upgrades.

Key Insurance Company Limited also continues to produce positive results, recording growth in revenues and PBT.

Canopy Insurance Limited (Canopy) generated revenue growth over prior year in all business segments. The Canopy team remains focused on revenue diversification and continues to actively pursue strategic partnerships.

GKFG’s most recent acquisition, GK Life Insurance Eastern Caribbean Limited reported double-digit top-line growth and will continue implementing its strategy to maximize the performance of its portfolio while establishing itself as a major pan-Caribbean insurer.

Allied Insurance Brokers Limited remains one of the leading insurance brokers evidenced by the award of two new tenders in the first quarter. The team is focused on strengthening and growing client relationships and leveraging partnerships.

GraceKennedy Money Services Limited (GKMS) reported a decline in revenue and PBT, primarily attributed to lower remittance flows and foreign currency volatility during the first quarter of 2022. Other GKMS products, such as “Bill Express” and “FX Trader” however, saw growth in both revenues and PBT.

GKMS continued to advance its digital agenda during the period, which was reflected in the positive performance of its online offerings, such as direct-to-bank transactions and “Bill Express Online”.

Digital Transformation

The “GK ONE” App was released in the Google and Apple App stores in March with the Bill Payment feature enabled. The development of the Credit Card Application was completed in March and released early in April. This followed 2 months of pilot testing with customers of FGB and GK staff. With this feature, GK ONE customers are able to apply for a credit card from FGB, thereby, allowing the Bank to offer credit cards using a digital application. The business has also completed testing of the flagship product, “Receive Remittance”, which will facilitate the receipt of remittances directly to their GK ONE wallet and expects to launch in the near term.

Mergers & Acquisitions

GK continues to advance its Mergers & Acquisitions (M&A) strategy in 2022. In April, GK entered into an agreement with entrepreneur and information technologist Larren Peart to make a private equity investment in Bluedot. The business was founded by Peart in 2016, and is a full-service research and data intelligence consultancy, which uses data collection and analytics to inform business insights and decision making. The private equity investment sees GK becoming the majority shareholder and the remaining interest held by Larren Peart. Peart will be the Managing Director responsible for its day-to-day operations and developing and implementing its strategy.

More information CLICK HERE

See also GraceKennedy Limited Businessuite 2021 #1 Jamaica Main Market Company – US$ Revenue 

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Main Event Entertainment Records $9.4M Net Loss For April 2025 Quarter

As part of its long-term strategy to reduce revenue volatility and deepen brand equity, the company has begun investing in its proprietary events. The performance of these initiatives is expected to materialise in the upcoming quarters.

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Solomon Sharpe Chief Executive Officer For Main Event Entertainment Group Limited Has Released The Following Unaudited Results For Six Months Ended April 30, 2025

The second quarter of the financial year unfolded within a still recovering economic environment. Jamaica experienced two consecutive quarters of economic contraction prior to this period, with the latest data from the Planning Institute of Jamaica (PIOJ) indicating a return to modest growth.

As a business closely tied to consumer activity and discretionary spending, MEEG’s performance is inevitably influenced by prevailing economic conditions. In times of reduced disposable income, demand for entertainment, events, and promotional services often comes under pressure. This context has framed many of the challenges and opportunities we faced during the quarter.

The company generated revenue of $306.368 million for the second quarter ended April 30, 2025. This represents a decline of $112.207 million or 27% compared to the second quarter of 2024. For the half-year, the company earned revenue of $891.395 million, reflecting a reduction of $94.932 million or 10% relative to the corresponding period last year. This contraction in revenue is primarily attributable to continued softness in core event categories, most notably Entertainment & Promotions and M-Style Decor. Performance was impacted by a combination of lower client marketing spend, fewer large-scale productions, and the nonrecurrence of several high-value projects that contributed materially to the prior year’s second quarter. Despite the general slowdown, the period saw several new and re-engaged clients contribute positively to revenue performance.

As part of its long-term strategy to reduce revenue volatility and deepen brand equity, the company has begun investing in its proprietary events. The performance of these initiatives is expected to materialise in the upcoming quarters.

Gross profit for the quarter was $165.818 million, compared to $198.064 million in the second quarter of 2024 — a decline of $32.246 million or 16%. Gross profit for the six months amounted to $467.485 million, down $46.402 million or 9% relative to the same period last year.

The company’s gross margin remained relatively stable at 54% for the quarter, a slight improvement from the 53% reported in the prior year. This increase reflects stronger project cost control and enhancements in resource planning, even amidst a softer revenue performance.

The company recorded a net loss of $9.337 million for the quarter, compared to a net profit of $20.016 million in Q2 2024. For the six-month period, net profit stood at $64.329 million, a decrease of $55.942 million or 47% from the $120.271 million earned in the comparative period. This swing was primarily driven by the reduction in revenue and other operating income, which was not fully offset by cost reductions.

Administrative and general expenses for the quarter totalled $143.244 million, an increase of $15.757 million or 12% compared to $127.487 million in the prior year.

Selling and promotional expenses also rose to $7.177 million, up 62% year over year, driven by increased brand-building efforts.

Depreciation expense declined by approximately $6.718 million or 20% compared to the prior quarter and by $9.764 million year-over-year, reflecting the completion of previous capital cycles. Conversely, amortisation charges increased, largely due to the refinancing of existing leases and the addition of new ones. These movements are aligned with the company’s strategy to invest in equipment and assets that enhance operational capacity and service delivery.

Total operating expenses for the quarter were $186.794 million, compared to $178.886 million in Q2 2024, an increase of 4%. On a year-to-date basis, total operating expenses amounted to $405.514 million, up $20.279 million or 5% over the $385.235 million recorded in the prior year.

Finance costs were marginally higher at $2.959 million, while taxation for the quarter reflected a credit of $1.876 million, corresponding to the pre-tax loss position.

The company reported a loss per share of $0.03 for the second quarter, compared to earnings per share of $0.07 in the prior year. For the six-month period, EPS was $0.21, down from $0.40 in 2024.
As at April 30, 2025, total assets stood at $1,219.275 million, broadly in line with $1,219.929 million recorded at the end of the second quarter of 2024.

Cash and bank balances amounted to $141.700 million, with short-term deposits increasing to $252.598 million, together reflecting a stable liquidity position.

Receivables closed at $299.718 million, slightly below the $309.556 million reported in the prior year.

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The LAB Posts $20.6M Half-Year Profit, Down 58%, Impacted by Revenue Timing and Margin Compression

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Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited consolidated financial statements for the six-month period ended April 30, 2025, prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated results include the performance of subsidiary Scope Caribbean Limited (Scope), whose core business involves the scouting, placement, and management of talent, supported by the development and maintenance of a comprehensive talent database.

For the period under review, the Group’s consolidated balance sheet remained sound with a stable cash position, providing the financial flexibility to support ongoing operations and strategic initiatives.

Revenue over the 6-month period of $460.2 million, represented a 3.3% increase compared to the corresponding period in 2024. This growth was driven primarily by increased activity in the Production and Media business segments. Media contributed $240.7 million, followed by Production at $151.8 million, and Agency at $67.5 million.

Gross profit amounted to $175.4 million, reflecting a 2.7% decline year-over-year. This was due to a higher proportion of revenue being derived from Media, which typically carries lower margins relative to the Agency segment. This shift in revenue mix also resulted in a 2% decline in the company’s net profit margin.

Net profit for the six-month period stood at $20.6 million, a 58.3% decline compared to the same period in the prior year. The decrease was primarily attributable to lower gross margins and a reduction in second-quarter revenue which was largely due to seasonal variations and the timing of project deliveries.

Operating expenses, comprising administrative, selling, and distribution costs, increased by $14.4 million or 10 percent compared to the same period last year. This increase primarily reflects strategic investments in talent, particularly in areas critical to our growth agenda such as business development, content creation, and enhancing the overall customer experience. While these investments contributed to higher short-term costs, they are considered essential to scaling our operations and building long-term shareholder value.

Total assets amounted to $1.03 billion, reflecting a decrease of $11.2 million or 1.1 percent, mainly attributable to normal depreciation. Current assets increased marginally to $865.9 million, up $1.6 million from the prior year.

Cash and cash equivalents stood at $332.4 million, down $226 million year-over-year, due primarily to increased investment in the development of proprietary content assets.

Accounts receivable increased by $39.5 million, and management continues to work closely with clients to manage credit terms and reduce outstanding balances.

Shareholders’ equity grew to $659.1 million, up 1.8 percent from $647.3 million in the prior-year period.

The LAB remains focused on disciplined execution of its growth strategy, with a continued emphasis on improving operational efficiency, diversifying revenue streams, and delivering long-term value to shareholders

Outlook & Growth Strategy

Looking ahead, the Group remains focused on executing its strategic roadmap amidst continued transformation in the marketing and creative services sector. Our efforts are concentrated on expanding and diversifying revenue streams, acquiring new clients, and introducing new service lines that align with emerging market needs. At the same time, we are maintaining a strong emphasis on cost discipline and efficiency.

The integration of artificial intelligence into our operations is expected to further streamline processes and deliver cost savings where appropriate.

Continued investment in content development also remains a strategic priority.

Despite ongoing macroeconomic uncertainty, 2025 has presented key opportunities for us to advance several critical initiatives. Our revenue expansion strategy includes the rollout of our “Five-in-25” content plan, which focuses on the development of five scalable content properties, the geographic expansion of our Agency and Production services, and the monetization of existing financial and intellectual assets to enhance top-line growth.

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SEE ALSO

Meta’s AI Ad Revolution Is A Seismic Shift in the Media Landscape – Its Impact On Caribbean Agencies

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Scotiabank Trinidad And Tobago Declares Dividend Of 70 Cents Per Share For 2nd Quarter

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Scotiabank Trinidad and Tobago Limited (The Group) reported Income After Taxation of $340 million for the 6 months ended 30 April 2025. This represents an increase of $17 million or 5% compared to the 6 months ended 30 April 2024. Income after Tax for the second quarter was $174 million, an increase of $14 million or 9% over the prior quarter’s performance.

This improved profitability resulted in an increased Return on Equity (ROE) of 14.9% and a stable Return on Assets (ROA) of 2.2% over 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 2nd quarter, for a total of 140 cents for the first half of fiscal 2025. Earnings per Share (EPS) increased to 192.9c with a strong Dividend yield of 5.35%.

Gayle Pazos, the Managing Director of Scotiabank Trinidad and Tobago Limited commented, “I am pleased to report on the Group’s strong financial performance this quarter.

By leveraging digital advancements and optimizing asset allocations, the Group has set a solid foundation for future growth and resilience in an ever-evolving financial landscape.

Income After Tax increased by 5% year on year, driven by core revenue growth. We have achieved significant asset growth of $1.8 billion or 6%, testament to our robust strategies and market positioning. Loans to Customers grew $716 million or 4%, with our investment portfolio growing by $1.6 billion or 27%.

This strong asset growth underscores our commitment to optimizing market conditions and ensuring consistent value creation for our stakeholders. Customers’ Deposits also grew by $1.6 billion or 7%, with digital adoption increasing to 57%. By leveraging digital advancements and optimizing asset allocations, the Group has set a solid foundation for future growth and resilience in an ever-evolving financial landscape.

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CIBC Caribbean Delivers Another Strong Quarter Of Financial Performance

We have maintained our focus on credit quality, and this is reflected in our provision for credit losses of US$2.8 million, which is US$5.1 million lower than the prior year. The reduction was driven by improved economic conditions and our prudent risk management approach.

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CIBC Caribbean has delivered another strong quarter of financial performance with a net income of US$58.5 million for the six months ended April 30, 2025. This result reflects an increase of US$9.6 million or 20% over the prior year’s net income of US$48.9 million. Our continued growth has been driven by higher net interest income, improved credit quality, and disciplined expense management.

Total revenue for the period was US$223.3 million, up US$15.8 million or 8% from the prior year. Net interest income rose by US$10.9 million or 7%, reflecting loan growth and improved margins. Non-interest income also increased by US$4.9 million or 11%, due to higher transaction volumes and foreign exchange earnings.

We have maintained our focus on credit quality, and this is reflected in our provision for credit losses of US$2.8 million, which is US$5.1 million lower than the prior year. The reduction was driven by improved economic conditions and our prudent risk management approach.

Operating expenses increased by US$2.1 million or 2%, primarily due to investments in technology and digital transformation initiatives, in line with our strategy to enhance customer experience and drive efficiency.

Our capital and liquidity positions remain strong and comfortably above regulatory requirements, supporting future growth and resilience.

Mark St. Hill Chief Executive Officer June 12, 2025

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Scotia Group Delivers 19% Q2 Profit Growth, Net Income Hits $5B for the Quarter

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The Following is an extract from Scotia Group Jamaica Limited (SGJ) Quarterly Financial Statements Q2/2025 and Declaration of Second Interim Dividend Payment

Scotia Group reports net income of $9.2 billion for the six months ended April 30, 2025, representing an increase of $665.6 million or 7.8% over the prior year. Net income for the quarter of $5 billion reflected an increase of $797.9 million or 19% over the previous quarter. The Group’s asset base grew by $87 billion or 12.9% to $763.5 billion as at April 2025 and was underpinned by the excellent performance of our loan and investment portfolios.

In furtherance of our objective to continue to return value to our shareholders, the Board of Directors has approved a dividend of 45 cents per stock unit in respect of the second quarter, which is payable on July 17, 2025, to stockholders on record as at June 25, 2025.

Commenting on the Group’s performance, Scotia Group’s President and CEO, Audrey Tugwell Henry said “I am very pleased with our Q2 performance.

Our business continues to grow as we prioritize our clients’ needs, offering them the best financial services and solutions in the market. We are also very proud that our performance has been recognized by renowned international financial publications. Scotiabank Jamaica has been named Bank of the Year 2025 by the prestigious publication, The Banker Magazine, as well as the Best International Private Bank 2025 by Euromoney, and The Best Bank in Jamaica by Global Finance Magazine. These accolades are a testament to the effectiveness of our strategy and the excellence of our people. We are buoyed by these awards and motivated to continue to strive toward our ultimate goal of being our clients’ most trusted financial partner.

Business Performance

All business lines continue to perform well and made significant contributions to the Group. Our retail banking business boasts some of the best solutions in the market and our clients are increasingly choosing Scotia Group for their financing needs. Our flexible retail loans and mortgages offer among the lowest interest rates in the market. Our Scotia Plan loan portfolio grew 14% over the previous year and our mortgage portfolio grew by 24% over the same period.

The Corporate and Commercial Banking unit continues to provide significant support to the business sector. While the uncertainties of the geo-political environment remain a concern, Scotiabank is uniquely positioned to help our clients by leveraging insights from our global bank to support them in navigating the challenges in the market. In Q2, our commercial loan book grew by 7 % over the previous year.

Scotia Investments Jamaica Limited delivered another commendable performance with Assets Under Management increasing by 12% year over year. In March, SIJL’s corporate solutions unit was the lead arranger for a $950 Million bond raise for Fontana Pharmacy. The coordinated collaboration between our corporate banking and corporate solutions business units continue to yield strong results for the Group.

Scotia Jamaica Life Insurance Company (SJLIC) reported an increase in net insurance business revenue of 76% over the previous year driven by the performance of the portfolio. Scotia General Insurance Agency (SGIA) also made strong contributions to the quarter’s results with Gross Written Premiums increasing by 64% and policy sales increasing by 55% year over year.

GROUP FINANCIAL PERFORMANCE

TOTAL REVENUES

Total revenues excluding expected credit losses for the six months ended April 30, 2025, grew by $2.9 billion to $33.4 billion, reflecting an increase of 9.5% over the prior year period. This was primarily driven by the strong growth in our loan portfolio which led to an increase in net interest income of $1.9 billion or 8.5% as well as an increase in other revenue of 13.1%. OTHER REVENUE Other income, defined as all revenue other than interest income, increased by $1.2 billion or 13.1%.

• Net fee and commission income for the period amounted to $3.9 billion, reflecting an increase of $501.1 million or 14.6%. This growth was fueled by higher volumes of client transactions and activities.

• Net insurance revenue increased by $797.4 million or 75.6%, driven by higher contractual service margin releases coupled with lower insurance expenses in keeping with the performance of the portfolio, as well as an increase in transaction volumes stemming from further deepening of our client relationships.

• Net gains on financial assets amounted to $288 million, reflecting a year over year increase of $85.5 million or 42.2%, given improved market performance.

OPERATING EXPENSES

Operating expenses totaled $18 billion as at April 2025 and reflected an increase of $2.6 billion or 16.6% when compared to the prior period. Of note, annual asset taxes recorded during the period totaled $1.7 billion, an increase over 2024 of $140.1 million or 9%. Excluding the reduction in the net pension credit on our defined benefit plans, operating expenses increased by $2 billion or 12.3% year over year.

Additionally, higher billings associated with cash transportation services and deposit processing as well as our investments in technology also contributed to the increase noted in other operating expenses. The Group continues to expand on our digital capabilities geared towards simplifying and streamlining our processes to make it easier for our clients to do business with us.

CAPITAL

Shareholders’ equity available to common shareholders totaled $155.9 billion and reflected an increase of $29.1 billion or 22.9% when compared to April 2024. This was due primarily to the re-measurement of the defined benefit pension plan assets, higher fair value gains on the investment portfolio and higher internally generated profits partially offset by dividends paid.

We continue to exceed regulatory capital requirements in all our business lines, and our strong capital position also enables us to manage increased capital adequacy requirements in the future and take advantage of growth opportunities.

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