KINGSTON, Jamaica–In releasing its stockholders' report for the period ending March 31, GraceKennedy Group CEO Don Wehby has described the group's profit performance as encouraging, particularly given the impact of the recent National Debt Exchange (NDX) and Private Debt Exchange (PDX).
Unaudited Group results show revenues for the period increasing by $466.2 million, to $16,062.3 million, representing a three per cent increase over the corresponding quarter in 2012. Net profit attributable to owners of the company increased by $37.9 million or 5.8 per cent compared to the corresponding period in 2012, moving from $651.8 million to $689.7 million.
Wehby noted that the income statement reflected a "one-off" loss of $215.5 million representing the write-off of unamortised premiums from instruments exchanged in the NDX.An interim dividend of 70 cents per stock unit was paid to stockholders on March 27, representing a 17 per cent increase over the corresponding period in 2012.
The first quarter for GraceKennedy Foods was described as a good one, with improved profit performance, as well as benefits gained from marketing efforts which focused on consumer acceptance in specific markets. Wehby said the North American expansion plan continues on target and additional listings had been gained in top retail chains in the UK.
The focus on Dutch and German markets in Europe has also begun to bear fruit, with improved distribution and consumer access there.
The GraceKennedy Financial Group results were described as satisfactory, considering the impact of the NDX and PDX. First Global Bank performed well with bank loans and deposits growing steadily. The money services segment reported growth in revenues and pre-tax profits over the corresponding period last year. It was reported that GraceKennedy Money Services (GKMS) recently took over the operations of Western Union in the British Virgin Islands.
GKMS also introduced Bill Express to the Eastern Caribbean, starting with four locations in Antigua.Jamaica International Insurance Company Ltd (JIIC), faced with lower yields on GOJ investments, due to the NDX, intensified its focus on operational efficiency and offering exceptional customer solutions.
In contextualising the company's performance this quarter, Wehby referred to the economic climate, stating that "the recent approval of an IMF extended fund facility has given some amount of confidence in the financial market. However the real work is ahead of us in ensuring that we meet the economic targets as set out in the IMF agreement".
He added that the company's participation in the NDX and PDX was considered to be in the best long term interests of shareholders, and the company looks forward to the measures being put in place by the Government to foster and enhance the development of the country.
Wehby thanked employees and directors for their dedicated efforts in delivering the first quarter results. He also conveyed gratitude to the company's consumers, customers, and suppliers for their continued relationship and dedicated support."We look forward to the coming quarters with optimism and remain guided by our values of honesty, integrity and trust," he said.