Home' Trinidad and Tobago Guardian : March 6th 2015 Contents Friday, March 6, 2015 www.guardian.co.tt Guardian
GRACEKENNEDY LIMITED | SUMMARY OF AUDITED RESULTS OF THE GROUP FOR THE YEAR ENDED 31 DECEMBER, 2014
CONSOLIDATED INCOME STATEMENT
YEAR ENDED 31 DECEMBER 2014
HONESTY | INTEGRITY | TRUST
In 2014, the GraceKennedy Group made significant investments towards the achievement of our
Company's strategic objectives. We are also very excited about the prospects for 2015 and beyond,
as the impact of 2014's investments continue to be realized.
Group revenues for 2014 were J$77.97 billion, representing an increase of 15.9% or J$10.71 billion
over 2013 (J$67.26 billion). Net profit attributable to the shareholders of the Company increased from
J$3.22 billion to J$3.29 billion during 2014, representing a 2.0% increase compared to 2013.
Earnings per share increased from J$9.66 in 2013 to J$9.90 in 2014.
Shareholders' equity increased by 11.5% or J$3.77 billion moving from J$32.77 billion in 2013 to
J$36.53 billion in 2014. In keeping with our Company's objective to improve shareholder returns,
dividends totalling J$2.33 per share were paid in 2014 compared to J$2.18 in 2013, an increase of
6.9%. We returned a total of J$916.12 million to our shareholders through a combination of dividends
and stock repurchases. At the end of 2014, the GraceKennedy stock price closed at J$61.03, a 10.8%
increase over the prior year, while the Jamaica Stock Exchange Market Index declined 5.3% over the
Total assets fell by 6.2% or J$6.78 billion from J$108.64 billion in 2013 to J$101.86 billion in 2014,
due primarily to the sale of our equity in First Global Financial Services Limited.
The major areas of focus for our Company during 2014 were: strengthening our Jamaican businesses,
growing our international presence, specifically in Western Africa, Continental Europe and on both the
East and West Coasts of North America, improving capital management, cost containment and
continued attention and commitment to our customers and employees. These, along with the
GraceKennedy Group's commitment to good corporate citizenship, drove our activities during 2014.
The Foods Division experienced several changes in both the Jamaican and international markets. We
executed a major initiative to expand our USA business with the acquisition of the business and assets
of La Fe Foods Inc. inclusive of top Hispanic Brand, La Fe. This acquisition represents a major step for
us, and will be the platform for the growth of GraceKennedy's North American business going forward.
We anticipate that our introduction into the Hispanic food and beverage market, one of the fastest
growing segments in the food market in the United States, will be a significant opportunity for growth.
We integrated the La Fe brands into GraceKennedy Foods USA LLC, and started the self-distribution of
Grace Brands in the North East USA, Florida and Atlanta. We will continue to distribute these brands
to surrounding areas through a network of distributors.
Notwithstanding the continued depreciation of the Jamaican currency as well as changes in consumer
demand as a result of decreased purchasing power we were able to grow revenue in the Jamaican
market. We saw positive signs in Grace Agro Processors (GAP), part of our manufacturing arm in
Jamaica, where pepper mash production increased significantly in 2014, enabling the production of
supply for local demand and for export.
We commenced the renovation of our Hi Lo supermarket chain in Jamaica, with the first completed
location at Manor Park receiving overwhelmingly positive customer reviews. We are also pleased that
our Grace Brand distribution volumes were enhanced by a continued flow of new products and the
successful re-launch of some existing favourites.
Our Foods business in the United Kingdom recorded good growth in revenue, with strong profit growth
over the prior year. There was also the expansion of Grace owned brands across the retailers in the
markets within that region.
Our business in Africa also saw a major development, with the start of our distribution arm for our
Grace and Grace owned brands in parts of West Africa. This led to the hiring of our first employees in
The Financial Services Division experienced good growth in profits, driven by the strong performance
of our Money Services and Insurance segments. There was, however, slower growth in revenue
primarily attributable to the divestment of the First Global Financial Services business on May 30,
The Insurance segment reported growth in both revenue and profit, mainly attributable to the
improved underwriting performance of Jamaica International Insurance Company Ltd. In keeping with
our goal of regional expansion for our Financial Services, in September 2014, GraceKennedy Financial
Group Limited acquired an additional 50% of the shares in EC Global Insurance Company Limited, a
St. Lucian general insurance company, bringing GraceKennedy's shareholding to 80%.
First Global Bank reported increased revenue over the prior year driven by growth in its loan portfolio,
resulting in higher net interest income as well as by growth in fee income. Pre-tax profits declined in
comparison to 2013 mainly due to depreciation arising from the capitalization of a new banking
platform, as well as higher staff costs and reduced trading gains. Significant investments were made
by the Bank during the year to improve the service delivery channels, in order to offer more innovative
banking solutions to our customers.
Following the divestment of our equity in First Global Financial Services Limited to Proven Investments
Limited, GK Capital Management Limited ("GK Capital") was established in June 2014. GK Capital's
lines of business include equity trading, corporate finance, mergers and acquisition activity and private
Our Money Services arm, GraceKennedy Money Services (GKMS), reported growth in both revenue and
profit for the year, primarily due to growth in transaction volumes in the Jamaica and Guyana markets.
GKMS introduced 'CoinXchange' in August 2014 and GraceKennedy Payment Services (GKPS)
received approval from the Bank of Jamaica in the third quarter of 2014 to proceed with a pilot
introduction of a mobile money service.
GraceKennedy continued to contribute actively to the development of our communities through our
GraceKennedy and Grace and Staff Foundations in the areas of education, sports, the environment,
management and nutrition. We are very proud of our Foundations, which continue to positively impact
the communities in which our companies are located.
It is with deep regret that we acknowledge the passing of Mr. G. Raymond Chang OJ, a Director of the
GraceKennedy Board and a member of the Audit Committee on July 27, 2014. He was not only an
accomplished businessman, but was also well-known for his philanthropy in Jamaica and Canada. We
wish to recognize his significant and longstanding contribution to the growth and development of our
Company. The Company also mourned the passing of former GraceKennedy Director and retired
GraceKennedy Executive, Francis 'Paco' Kennedy CD, who died on October 26, 2014. His legacy lives
on at GraceKennedy.
GraceKennedy's commitment to excellence was recognized when our Company earned two
prestigious awards from Jamaica's Gleaner Company. We received the Gleaner 2014 (overall)
Honouree of the Year Award, as well as the Gleaner Honour Award for Business for GraceKennedy's
"immeasurable contribution to Jamaica's economy and its people." The Company also won the Best
Practice award for Corporate Disclosure and Investor Relations from the Jamaica Stock Exchange.
GraceKennedy is positively poised to take on 2015 and has launched as our theme for the year
"winning customers' hearts and minds through great people". We are focused on consumer centricity
and winning and maintaining our customer base in Jamaica and across the world. We also aim to get
closer to our customers and consumers across our various markets and to serve them better. We have
every confidence in our excellent team, and firmly believe that we have the right infrastructure, the
appropriate risk mitigation and the strategies in place to achieve our goals.
As we celebrate our 93rd anniversary in 2015, we are thankful for our successes and move forward to
achieve even more guided by the values of HONESTY, INTEGRITY AND TRUST. As always, we thank you,
our shareholders, for your confidence and support. We anticipate that you will continue to support us
as we work to take on any challenges which may arise on our way to becoming the Global Consumer
Group that we all envision. We are thankful to our Directors and employees for their dedication and
commitment. To our consumers and customers, thank you for your loyal support.
Group Chief Executive Officer
March 2, 2015
Profit from Operations
Interest income -- non-financial services
Interest expense -- non-financial services
Share of results of associated companies
Profit before Taxation
NET PROFIT FOR THE YEAR
Profit attributable to:
Owners of GraceKennedy Limited
Earnings per Stock Unit for profit attributable to the
owners of the company during the year:
(expressed in $ per stock unit):
Links Archive March 5th 2015 March 7th 2015 Navigation Previous Page Next Page