GraceKennedy Group is reporting that its second quarter revenue and profits are ahead of the corresponding period for prior year by nine per cent and 10 per cent, respectively.
“Profit before other income for the six-month period was $1.65 billion, 15.1 per cent or $217.1 million higher than that of the corresponding period in 2018, indicating improved operating performance,” the group said in a news release of its results for the six months ended June 30, 2019.
The group recorded revenues of $51.49 billion, an increase of 6.5 per cent or $3.12 billion over the corresponding period last year. Net profit after tax for the period was $2.27 billion, representing a decline of 7.3 per cent or $179.2 million over the corresponding period of 2018. Net profit attributable to stockholders was $2.01 billion, 6.6 per cent, $142.2 million lower than that of the corresponding period last year, while earnings per stock unit for the period was $2.03.
However, the company’s results were negatively impacted by the new accounting standard on leases (IFRS 16) which resulted in an additional expense of $115.0 million, as well as post-employment benefit expenses relating to IAS 19 increasing by $189.0 million.
The group also said that during the first six months of 2019, the volatility in the Jamaican foreign exchange market, particularly in the US dollar exchange rate, had a significant negative effect on its results when compared to the corresponding period of 2018.
“We’re proud of the improved operating performance for the group, and despite the challenges presented by the new IFRS standards and the volatility in the foreign exchange market, the GraceKennedy Group expects to meet its 12-month profit target for 2019, and achieve further improved operating performance,” Group CEO Don Wehby said.
Group CFO Andrew Messado disclosed that the company “will pay a dividend of 40 cents per share, equivalent to J$397 million on September 26”.
In terms of segment performance, the Food Trading Division recorded improved revenue but saw a decline in profitability when compared to the corresponding period of 2018.