August 2, 2024

GraceKennedy Group Ltd (GK)

Unaudited financials for the six months ended June 30, 2024:

GraceKennedy Group Ltd (GK) for the six months ended June 30, 2024, reported an 8% increase in Revenues totalling $84.39 billion compared to $78.23 billion in the corresponding period last year. Revenues for the second quarter had a 7% increase to close at $42.04 billion compared to $39.14 billion for the comparable quarter of 2023.

Direct and operating expenses amounted to $79.87 billion (2023: $73.89 billion), this represents an increase of 8% year over year. Consequently, profit before other income increased by 2% to $4.28 billion compared to $4.20 billion for the six months ended June 30, 2023. The company booked profit before other income of $2.41 billion for the second quarter versus $2.24 billion reported for the similar quarter of 2023.

Other Income increased by 14% to close at $2.18 billion (2023: $1.90 billion). As such, profit from operations increased from $6.11 billion to $6.45 billion in the period under review.

Interest Income – non-financial services increase by 31% from $313.77 million in 2023 to $409.98 million in the period under review while, interest expense – non-financial services for the six months ended June 30, 2024, amounted to $965.57 million, a 21% increase relative to $799.04 million reported in 2023.

Share of Results of Associates & Joint Ventures for the six months ended June 30, 2024, amounted to $560.40 million, a 7% increase relative to $523.90 million reported in 2023. Share of Results of Associates & Joint Ventures for the second quarter amounted to $115.79 million (2023: $124.87 million).

Profit Before Taxation totalled $6.46 billion a 5% increase from the corresponding period last year. (2023: $6.14 billion).

Taxation for the six months ended June 30, 2024, amounted to $1.74 billion, a 5% decrease relative to $1.66 billion reported in 2023.

Net Profit for the six months ended June 30, 2024, had a 5% increase to reach $4.71 billion (2023: $4.48 billion).

Net profit attributable to shareholders for the six months amounted to $4.44 billion, a 6% increase from the $4.19 billion reported in 2023. For the second quarter, Net profit attributable to shareholders was $2.28 billion (2023: $2.07 billion).

Consequently, Earnings Per Share for the six months amounted to $4.46 (2023: EPS: $4.21), while Earnings Per Share for the quarter totalled $2.29 (2023: EPS: $2.08). The twelve month trailing EPS was $8.06 and the number of shares used in these calculations was 995,177,300.

Notably, GK’s stock price closed the trading period on July 31, 2024 at a price of $73.91 with a corresponding P/E ratio of 9.17x.

Balance Sheet Highlights

The company’s assets totalled $232.87 billion (2023: $207.87 billion). The growth in total assets was influenced by a $7.55 billion uptick in ‘Investment Securities’ and a $5.14 billion increase in ‘Loans Receivables’. Also, ‘Cash and Deposits’ and ‘Pension Plan Assets’ trended up by $2.09 billion and $2.74 billion, respectively.

Shareholder’s equity was $87.25 billion (2023: $81.04 billion), representing a book value per share of $87.68 (2023: $81.43).

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