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Businessuite 2020 #1 Jamaica Main Market Company – US$ Revenue |
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US$000 |
US$000 |
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US$000 |
2017 |
2018 |
2019 |
2020 |
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Company |
2019/2020 |
2018/19 |
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2017/18 |
1 |
1 |
1 |
1 |
JA |
GraceKennedy Limited |
$777,626 |
$735,798 |
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$739,805 |
Our Vision
“To be a Global Consumer Group, delivering long-term consumer and
shareholder value through brand building and innovative solutions in food and financial services, provided by highly skilled and motivated people.”
GraceKennedy has been serving the needs of Jamaicans at home and across the world since its birth in 1922. Ninety-eight years later, our market spans many different countries, and our audience is broad and diverse. Our company has taken the best of brand Jamaica, and spread it to the world.
GraceKennedy’s journey to becoming a Global Consumer Group continues, and we work towards that goal while demonstrating the best of what Jamaica has to offer, embodying the theme, “The Spirit of Jamaica Inspiring the World.”
In 2019 the GraceKennedy Group experienced both successes and challenges in the execution of our strategy.
The Group balanced continuity with change as we sought to drive agility and efficiencies in the way we do business while keeping our customers at the centre of our strategy.
Our operational strategy for 2019 was focused on investing in our brands and expanding market share, deploying digital and innovative solutions for our customers. The Group continued to enhance its enterprise wide risk management and compliance processes and drive greater operational efficiencies within the Group.
GraceKennedy Limited has positioned itself for future growth with the ongoing
implementation of transformational structural and process improvement initiatives.
Revenue for the Group totalled J$103.09 billion, an increase of J$5.55 billion over 2018. This is a historic achievement, the first time that the Group has surpassed the J$100 billion mark for revenue, ahead of our original target of 2022, which will be the Group’s 100th anniversary.
Profit before other income, increased by J$598.5 million to J$3.74 billion, a 19% increase over 2018, indicating an improved operating margin.
In 2019 GraceKennedy Limited incurred IAS 19 post-employment benefit expenses of J$1.22 billion. This is an increase of J$890 million over the IAS 19 post-employment benefit expenses of J$332 million in 2018. Excluding this non-cash expense, profit before other income would have shown an increase of 43%.
Our results were also negatively impacted by the adoption of the new accounting standard on leases, IFRS 16, resulting in an increase in expenses of J$228 million.
Stockholders will recall that the GraceKennedy Group is a net earner of foreign exchange and has net foreign assets, whose values are subject to movements in foreign currency exchange rates.
During the year, the volatility in the Jamaican foreign exchange market, particularly in the US Dollar exchange rate had a negative effect on the Group’s results when compared to 2018.
Profit before Tax for 2019 was J$6.13 billion, a decrease of 12% or J$835 million compared to 2018. As previously reported, in 2018 the Group had non-recurring gains of J$1.13 billion from the dissolution of a non-operating
subsidiary and an acquisition by an associated company.
Excluding these gains in 2018, together with the IAS 19 and IFRS 16 expenses noted above, Profit before Tax for the year 2019 would have been higher than 2018 by J$1.42 billion or 23%.
Financial highlights:
• Group Revenue for 2019 was J$103.09 billion, representing an increase of J$5.55 billion or 5.7% over 2018 (J$97.54 billion).
• All business segments recorded increased revenue and profits for 2019 compared to 2018
• Profit before other income, excluding IAS 19 expenses, increased by 43%.
• Net profit attributable to the shareholders of the Company was J$4.49 billion for 2019 compared with J$5.01 billion for 2018 a J$518.53 million decrease.
Earnings per share was J$4.52 in 2019 compared with J$5.05 in 2018, a 10.5% decrease.
• Total assets grew by 14.4% or J$19.47 billion from J$135.24 billion in 2018 to J$154.71 billion in 2019. On the adoption of IFRS 16 on January 1, 2019, the Group recognized a right-of-use asset of J$6.24 billion shown in fixed assets, with a corresponding amount being recognized as a lease liability shown in bank and other loans. At the end of 2019, these items increased to J$8.33 billion and J$8.51 billion respectively.
• Dividends totalling J$1.54 billion or J$1.55 per share were paid in 2019 compared with J$1.34 billion or J$1.35 per share in 2018, an increase of 14.8%.
• At the end of 2019, the GraceKennedy stock price closed at J$69.43. This represented a 9.3% increase over the stock price at the close of 2018.
Extracted from Stockholders Report
Don G. Wehby, CD
Group Chief Executive Officer
More Information
https://www.gracekennedy.com/wp-content/uploads/media-center-reports/GK-2019-AnnualReport.pdf