Home' Trinidad and Tobago Guardian : May 24th 2013 Contents A38
GRACEKENNEDY LIMITED | INTERIM REPORT 31 MARCH 2013
HONESTY | INTEGRITY | TRUST
The Directors are pleased to present the unaudited results of the Group for the quarter ended March 31,
2013. The Group achieved revenues for the period of $16,062.3 million (2012: $15,596.1 million), a $466.2
million or 3.0% increase over the corresponding quarter of 2012. Net profit attributable to owners of the
Company increased by $37.9 million or 5.8% compared to the corresponding period of 2012, moving
from $651.8 million to $689.7 million. This profit performance is encouraging given the impact of the
recent National Debt Exchange (NDX) and Private Debt Exchange (PDX). A "one-time" loss of $215.5
million was recorded in the Income Statement representing the write-off of unamortized premiums from
instruments exchanged. Earnings per stock unit for the period were $2.06 (2012: $1.96).
On February 27, 2013, the Board of Directors approved an interim dividend which was paid on March 27,
2013 of 70 cents per stock unit. This is a 17% increase over the corresponding period in 2012.
The first quarter of 2013 was a good one for the Foods Division. This was reflected in improved profit
performance. Leading markets were Jamaica, Canada, Belize and the USA. Our international business
benefitted from our marketing efforts with the main focus being to gain consumer acceptance from
specific market segments. These efforts will result in revenue growth and a better understanding of
the culture and taste preferences of these new groups of consumers. These customers are within new
countries using new and existing channels. Our expansion on the west coast of North America continues
as planned, and we have gained additional listings in the top retail chains in the UK. Our venture into
Ghana is going well and advertising has begun in that market. Our focus on the Dutch and German
markets in Europe has resulted in improved distribution and consumer access; we expect to benefit from
this tactical shift later in the year.
The GraceKennedy Financial Group (GKFG) ended the first quarter of 2013 with mixed results. Jamaica's
operations were impacted by the recent NDX and PDX. The money services segment had a good quarter,
reporting growth in revenues and pre-tax profits over the comparable period last year. First Global Bank's
loans and deposits grew steadily over the comparable period in 2012. Faced with lower yields on GOJ
investments due to the NDX, JIIC has intensified its focus on improving operational efficiency and
offering exceptional customer solutions. GraceKennedy Money Services (GKMS) recently took over the
operations of Western Union in the British Virgin Islands, and also introduced Bill Express to the Eastern
Caribbean, beginning with four locations in Antigua.
The GraceKennedy Foundation Annual Lecture was held on March 5, 2013. The lecturer was Dr. Anna
Kasafi Perkins, Lecturer and Programme Officer at the University of the West Indies. The Lecture was
entitled "Moral Dis-ease Making Jamaica Ill? Re-engaging the Conversation on Morality." She spoke of
the moral despair and disengagement that can undermine our Country's efforts at moral regeneration,
attacking the core character of the Jamaican person and misshaping their values, attitudes and habits
away from the call to be good citizens. The lecture was very well received.
The GraceKennedy Group and the Inter-Secondary School Sports Association (ISSA) again worked
together to ensure the successful staging of the 2013 ISSA/GraceKennedy Boys' and Girls' Championships
in March. Approximately 207 schools participated in the 103rd staging of the championships. The event
was a success with 30 records broken and continued exposure of the athletic abilities of our youth.
Other activities during the quarter included a donation of 13 computer labs deployed mostly to primary
schools through the Western Union I-Pledge programme as well as another successful staging of
Western Union's Reading Week. GraceKennedy launched its internship progamme on March 4, with ten
university students being given the opportunity over the next 12 months to work in various subsidiaries
GraceKennedy mourned the passing of an outstanding nutritionist, former employee, mentor, friend and
invaluable consultant to our company, Dr Heather Little-White, OD on January 23, 2013. On April 9,
2013, the company again mourned the passing of cultural icon and another former employee, Dr the
Hon. Olive Lewin, OJ. Her ground-breaking work in folk music has had a major impact on Jamaica, and
GraceKennedy was privileged to have been in a position to support her life's mission of strengthening
our indigenous culture. Jamaica has lost two national treasures, and we offer our sincere condolences
to their family and friends.
Dr. Parris Lyew Ayee Jr. was appointed to the GraceKennedy Limited Board on March 6, 2013. We look
forward to his contribution as a member of the Board.
The recent approval of an IMF Extended Fund Facility has given rise to both optimism and the need
for frugality. These times require prudence and your company is committed to increasing our value
proposition to all stakeholders. We have participated in the NDX and the PDX in the interest of national
development. We look forward to the benefits that are to be eventually derived from this national sacrifice.
We are committed to doing our part to ensure its success.
We are thankful for the efforts of our dedicated employees and directors in delivering these results. We
thank our consumers, customers and suppliers for their continued relationship and dedicated support.
We look forward to the coming quarters with optimism and will continue to be guided by our values of
Honesty, Integrity and Trust.
Douglas R. Orane
Don G. Wehby
Group Chief Executive Officer
May 9, 2013
INTERIM REPORT TO OUR STOCKHOLDERS
CONSOLIDATED INCOME STATEMENT
THREE MONTHS ENDED 31 MARCH 2013 (Unaudited)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MARCH 2013 (Unaudited)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
THREE MONTHS ENDED 31 MARCH 2013 (Unaudited)
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