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GRACEKENNEDY Continues To Deliver Outstanding Results In 2021

The global consumer group which operates in the areas of food and financial services realized J$129.3 billion in revenues in 2021, an increase of J$13.9 billion or 12% over 2020. Profit before tax (PBT) for 2021 was J$11.7 billion, a notable increase of 20.3% compared to the prior year.

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2021 revenues up J$13.9 billion or 12% over prior year; profit after tax up 30.4%

GraceKennedy (GK) has released its annual financial results for the period ended December 31, 2021.  In a year which continued to be characterised by the COVID-19 pandemic, GK defied the odds and delivered outstanding results in 2021, building on its record-breaking 2020 performance. The global consumer group which operates in the areas of food and financial services realized J$129.3 billion in revenues in 2021, an increase of J$13.9 billion or 12% over 2020. Profit before tax (PBT) for 2021 was J$11.7 billion, a notable increase of 20.3% compared to the prior year. Profit after tax totalled J$8.9 billion, representing an increase of J$2.1 billion or 30.4%. GK’s total assets grew by 16.4% or J$28.1 billion in 2021, up from J$171.7 billion in 2020 to J$199.8 billion.  

Net profit attributable to the stockholders of the Company was J$8.2 billion in 2021, a J$2 billion increase over 2020.  Earnings per share was J$8.27 in 2021, compared to J$6.28 in 2020, representing a 31.7% increase. Last year, GK’s share price on the Jamaica Stock Exchange (JSE) increased by 59.6%, from J$62.68 on December 31, 2020, to J$100.02 on December 31, 2021. Dividends totalling J$1.9 billion or J$1.93 per share were paid out by GK in 2021, an increase of 21% over the $1.6 billion paid out in 2020. GK’s 2021 dividend pay-out has broken the previous year’s record as being largest in the Company’s history.

GK Group CFO, Andrew Messado has also announced GK’s first dividend payment for 2022 of 48 cents per stock unit, payable on April 8, 2022, totalling approximately $476 million.

Commenting on the 2021 results, GK Group CEO, Don Wehby stated “In the face of the pandemic our GK team remained Stronger Together, consistently going above and beyond to provide our customers with the highest standard of products and services, whilst working to achieve our strategic goals. These results are testament to the hard work of our team and the loyalty of our customers around the world, who continue to support our businesses year after year. Of course, this year is a very special one for us and all our stakeholders, as GK celebrates our 100th anniversary in 2022. It’s a monumental milestone for our Company and for Jamaicans around the world, who are very much a part of our GK story. Also, to consistently be delivering such a strong performance after a century in operation is truly an extraordinary accomplishment.”

GK’s Foods business performed extremely well in 2021, despite the challenges associated with high inflation and supply chain delays. Both GK Foods – Domestic and GK Foods – International recorded double-digit growth in revenue and profitability over the previous year, with GK Foods (USA) LLC notably reporting an improved performance over the exceptional returns it recorded in 2020. The GraceKennedy Financial Group (GKFG) also reported growth in revenue and PBT in 2021 when compared to 2020. Notwithstanding the increasingly competitive remittance environment globally, GK’s Money Services segment ended the year with revenue and pre-tax profit exceeding 2020. GK’s Banking, Investments and Insurance segments also performed well in 2021.

GK continued executing its M&A strategy in 2021, adding Scotia Insurance Eastern Caribbean Limited (SIECL) to its portfolio. The regional entity was subsequently renamed GK Life Insurance Eastern Caribbean Limited (GK Life) and continues to offer credit protection in the Eastern Caribbean. The 876 Spring Water brand was also acquired by GK in 2021, further strengthening its position in the spring water market.

GK also advanced its digital transformation agenda in 2021 with the launch of its Digital Factory early in the year. A new e-commerce platform from GK’s Hi-Lo Food Stores supermarket chain, Hi-Lo Online, was also launched, and the development of GKFG’s much-anticipated GK ONE mobile app was completed.

“We will continue to execute GK’s strategy going forward, including our focus on M&A and digital transformation. Our new GK ONE app is slated for launch before the end of March, and we have several transactions in the pipeline as we advance our M&A strategy. Supply chain management, inventory management, and providing new delivery channels and innovative solutions also continue to be key areas of focus for our businesses. And of course, above all we remain firmly committed to our we care mantra, by supporting the well-being of the communities we serve around the world and by making the health and safety of our team and other stakeholders our top priority,” said Wehby. 

In 2021 through its Grace & Staff Community Development Foundation, GK provided scholarships for over 1,000 Jamaican students, and continued to operate homework centres, distribute care packages, and deliver counselling sessions for residents in underserved Jamaican communities. In 2021 the GK Foundation began a pioneering pilot project with the Dutch non-profit environmental organisation The Ocean Cleanup to install Interceptor Barriers at the mouths of three Kingston gullies to prevent solid waste from entering the Kingston Harbour. Last year GK companies also donated over J$13 million towards the purchase and shipping of supplies to residents of St Vincent following several massive eruptions of the island’s La Soufrière volcano in April.

 “I’m filled with immense pride and eternally grateful to be leading this amazing GK team at such an important time in our history. After 100 years, GraceKennedy continues to demonstrate the strength of our team, the strength of our strategy, and the strength of our spirit. Thank you to all GK’s supporters around the world, especially our longstanding customers, business partners and shareholders. In the coming months I will be sharing the details of GK’s 2030 vision. The best is yet to come for our business, and I know I speak for the entire GK team when I say how much we look forward to continuing to work with all our stakeholders to shape a better future for the communities we serve around the world,” concluded Wehby.

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ANSA McAL Group Announces Formation Of Joint Venture Company, Globus ANSA Private Limited, With Globus Spirits Limited In India.

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A. Norman Sabga Executive Chairman of the ANSA McAL Group of Companies has announced the formation of the joint venture company, Globus ANSA Private Limited, with Globus Spirits Limited in India.

In a release posted on the Trinidad and Tobago Stock Exchange ANSA McAL confirmed that with effect from 4th April 2024, ANSA McAL Limited (“ANSA McAL”) entered into a joint venture agreement with Globus Spirits Limited (“GSL”) to establish Globus ANSA Private Limited (“GAPL”).

Each party will hold fifty percent (50%) of the issued and allotted ordinary share capital of GAPL.

“This collaboration signifies a new era in the Indian alcoholic beverages industry, driving innovation and growth, ‘

“Globus ANSA Private Limited will specialise in manufacturing and distributing alcoholic beverages across the Indian subcontinent, leveraging the strength of both ANSA McAL and Globus Spirits Limited,” said Mr. Shekhar Swarup, Managing Director for Globus Spirits Limited. “This collaboration signifies a new era in the Indian alcoholic beverages industry, driving innovation and growth, ‘he stated

 

 

 

Globus Spirits Ltd is one of the leading players in the Alcohol industry in North India distributing brands in the Consumer Segment including:
• GR8 Times.
• Rajputana.
• Globus Spirits Dry Gin.
• White. Lace.
• Governors’ Reserve Red.
• Governors’ Reserve Blue.
• Oakton.
• Laffaire. Napoleon.

Trinidad and Tobago conglomerate ANSA McAL Group has over 142 years of rich history representing many world-renowned brands, including some of their own home-grown successes. The partnership marks a significant milestone in ANSA McAL Group’s journey, merging cultures and expertise to revolutionise the beer industry in India, with their icon Carib brand and leading the charge.

Norman Sabga Executive Chairman of the ANSA McAL Group of Companies, highlighted the immense opportunities in India and their commitment to delivering unparalleled value through this partnership.

“We are confident that our collaboration will allow us to seize the growing demand for high quality beverages by captivating palates with our distinctive products” he said

ANSA McAL is now poised to be an equal Shareholder of GAPL, an Indian company which
would produce, market, sell, distribute and retail beer and other beverages.

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Jamaica Broilers Group Reporting Strong Top and Bottom Line Performance for January 2024 Quarter

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Christopher E. Levy Group President & CEO of Jamaica Broilers Group Limited now release the following unaudited financial results for the quarter ended January 27, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS).

The Group produced a net profit attributable to shareholders of $1.3 billion, for the quarter ended January 27, 2024. The operations of the Group continue to be strong, and our gross margins are consistent with expectations.

Quarterly Group revenues amounted to $23.6 billion, a 4% increase above the $22.7 billion achieved in the corresponding quarter.

Our gross profit for the quarter was $5.9 billion, a 7% increase above the $5.5 billion achieved in the corresponding quarter in the prior year.

Jamaica Operations reported a segment result of $5.9 billion which was $448 million or 8% above last year’s segment result. Total revenue for our Jamaica Operations showed an increase of 2% over the prior year nine-month period. This increase was primarily driven by the growth in the sale and export of poultry and implementation of cost containment efforts.

Our US Operations reported a segment result of $3 billion which was $226 million or 8% above last year’s segment result. This increase was driven by increased volumes of poultry meat and eggs, as well as the implementation of cost management initiatives.
Total revenue for the US Operations increased by 3% over the prior year nine-month period.

We have begun to realise additional volumes through the US operations, which has resulted in increased financing requirements primarily around working capital.

For More Information CLICK HERE

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Main Event Reporting Net Profit Of JA$100M For Quarter Ended January 2024

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Solomon Sharpe Chief Executive Officer of Main Event Entertainment Group Limited has released the following unaudited financial statements for the quarter ended January 31, 2024 (Q1).

The company continues to have solid results in an increasingly competitive and largely difficult environment. The company’s performance was anchored by diversifying our client base through strategic targeting and efficient management of our operations.

The company reported net profit of $100.254M for the quarter ended January 31, 2024, representing a decline of 15% or $17.695M relative to the corresponding period of 2023. Consequently, earnings per share decreased by 15% to $0.33 per share.

Total revenues for the quarter ended January 31, 2024 declined by $59.235M to $567.752M, reflecting a decrease of 9% over the corresponding period. This was mainly due to a one-off event for one of our major clients which is not likely to reoccur in subsequent periods.

The company was strategic in its efforts to protect the margins and the gross profit for the quarter was $315.822M compared to the $312.611M earned in 2023. This demonstrates the company’s ability to be alert and responsive to market conditions. Gross margins improved to 56%, up from 50% in the corresponding period.

The company continues to generate revenues from activities requiring reduced external support.

For more information CLICK HERE

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The LAB Reporting Higher Net Profits Based On Strong Focus On Agency Segment

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Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited financial statements for the three months ended January 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated results include the subsidiary Scope Caribbean Limited (Scope) whose principal business is the scouting, placement and management of talent while expanding and maintaining a database of quality talent.

The LAB achieved higher net profits when compared to the corresponding period last year. This was based on the strong focus on the Agency Segment of the business for this quarter, as the company continued to build brands. The Agency Segment provides the highest profit margin and as such bolstered the results for the period. The company also implemented cost containment measures, which resulted in a 19.2% reduction in administrative expenses when compared to prior period. We continue to maintain a strong balance sheet and our cash position grew stronger over the period. Our asset base increased, as we reinvested in the business through further upgrading film studio facilities.

Revenue for the three months ended January 31, 2023, was $219.4 million, down 11.4% relative to the prior period. This decline was primarily attributable to a reduction in production during the period due to its cyclical nature. Notwithstanding this, the Agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: Media totalling $118.3 million, followed by Production with $29.3 million and Agency with $71.6 million.

The company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.

Gross Profit for the three months was $88.9 million, down 3.3% when compared to the corresponding period. Net Profit achieved was $26.2 million, up 295.7% relative to the comparable period. due to higher gross profits from the agency segment and lower administrative expenses. Administrative expenses decreased by $16.3 million or 19.2% in comparison to the corresponding period last year. These decreases are primarily due to reduction in contractor and staff cost.

The consolidated Balance Sheet saw total assets increasing by $119 million or 15.1% to $909.3 million compared to $790.2 million in the corresponding period. This increase in assets is driven by building and film studio facilities improvement and purchases of new production equipment to facilitate future growth.

Current Assets amounted to $731.7 million, increasing by $107.6 million over the prior year, primarily due to a 43.6% increase in cash and cash equivalent. Management continues to maintain tight monitoring and control over receivables. Cash and cash equivalent increased by $142.4 million over the corresponding period last year. Shareholders’ equity grew to $624 million, up from $548.1 million or 13.9% over the corresponding period last year.

The LAB is pleased to report significant progress in our strategic initiatives. We have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law,” as outlined at our last Annual General Meeting (AGM). Additionally, Pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.

In line with our strategic objectives, we are actively engaging with international networks and digital streaming platforms to secure distribution opportunities for our content upon production completion. This proactive approach ensures that our creative endeavours have a suitable platform to reach global audiences.

For More Information CLICK HERE

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Maximum Participating Voting Share Capital Of Companies Listed On The Junior Stock Exchange Moving From JA$500 Million To JA$750 Million

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“Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Government of Jamaica through the Ministry of Finance and the Public Service has announced that they have increased the participating share capital limit from $500 million to $750 million for companies on the Junior Market of the Jamaica Stock Exchange.

“This is very exciting news for the Exchange,” commented Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange. “This is an exceptionally good move by the Government as this will allow small and medium sized companies to come to market to raise additional capital for business expansion and assist new companies to raise capital and to consider this capital raising option as viable. She stated that “Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Junior Market was established in 2009 to allow small and medium sized companies (SMEs) to raise a maximum of $500 million dollars during an initial public offering (IPO). The Government’s new initiative towards companies listed on the Junior Market now allows them to raise up to $750 million dollars, an increase of $250 million dollars.

Source Jamaica Stock Exchange

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