GK Annual Figures Rose “Gracefully” for 2024

• For FY2024, GraceKennedy Limited (GK) reported net profit of $8.86Bn, a 5.8% increase over the prior year. GK’s performance reflects solid revenue growth, moderated by rising direct & operating expenses and finance costs.
• Revenues totalled $167.04Bn, representing a 7.8% increase over FY2023. This was largely driven by $131.68Bn from its Food segment (+7.3%), which benefitted from higher volumes and price adjustments. Expansion in its Insurance ($17.49Bn; +13.4%) and Banking & Investments ($11.00Bn; +14.4%) segments also supported revenue growth. However, Money Services declined by 2.5% to $8.62Bn reflecting increased competition in the sector and weaker remittance inflows into the economy.
• Regionally, Jamaica remained GK’s largest revenue generator with $96.72Bn, amid robust domestic demand, followed by the United States and Canada, contributing $21.63Bn and J$8.37Bn, respectively.
• Fueled by higher staff costs, reflecting salary adjustments and inflationary pressures, Direct and operating expenses rose by 7.7% to J$159.06Bn from J$147.46Bn in 2023. Advertising and marketing spending also increased by 21.6% to $4.76Bn, as GK boosted promotional activities to support revenue growth. Rising transportation and distribution costs, tied to both higher sales volumes and ongoing supply chain pressures also contributed to the increase.
• Lastly, finance costs were up 13.0% to $1.95Bn, largely driven by $1.01Bn from the Banking & Investments segments (+28.3%) and the insurance segment of $1.83Bn (+51.4%). The higher finance costs coincide with a YoY increase in the group’s financial liabilities (+6.4%).
• Since the start of the year, GK’s share price has declined by 6.9% to $73.48 and has a P/E of 8.72x, which is below the main market average of 12.58x.

(Source: GK Financial Statements & NCBCM Research)