GraceKennedy banks on money services
(Jamaica Observer) - For the year ended December 2016, GraceKennedy Group Ltd saw an 11 per cent rise in total revenues from $79.42 billion in 2015 to $88.27 billion, supported by an increase in sales in all geographical areas except the United Kingdom, where the devaluation of the pound sterling made an impact.
Net profit of $4.53 billion was made by the group, compared to $3.25 billion in 2015, despite an increase in expenses to $84.68 billion relative to $ 76.94 in the prior year.
Earnings per share at year end were $4.04 relative to $2.64 in 2015.
Group CEO Don Wehby has indicated that 2017 will see the company making more investments in the area of agriculture in Jamaica. Inflows from the island totalled $45.34 billion in 2016, up from $40.24 billion the year before.
In second place is the United States with revenues of $16.9 billion, up from $14.9 billion. Although the UK takes the place of third highest revenue source, sales fell to $12.58 billion in 2016 compared to $13.05 billion the year before, probably due to the impact of the pound sterling’s devaluation.
Canada brought in $5.32 billion, while other Caribbean territories garnered revenues of $6.34 billion. Just under $2 billion flowed from the combination of Africa, other European countries and other countries.
While food trading continued to deliver highest sales, $69.07 billion compared to $ 62 billion the year before, the best margins by segment continue to come from the company’s money services division.
Food trading saw operating results of $1.43 billion in 2016, a marked improvement over the $766.8 million of the year before. Money services whose revenues were $7.85 billion (compared to $6.58 billion the year before) produced operating results of $3.06 billion.
Recently, the division introduced a mobile money product, GK-MPAY, which will allow users to receive remittances from abroad on their phones and also pay for goods and services with the digital currency.
Banking and Investments saw operating results fall to $350.6 million on revenue of $5.62 billion in 2016 compared to $537.52 in 2015 from revenue of $5 billion.
The group’s insurance division improved results to $780 million earned on revenue of $6.37 billion, compared to $573 million earned on $5.9 billion in 2015.
GraceKennedy as a group improved assets at year end 2016 to $126.48 billion relative to $108.69 billion in 2015. Cash resources were $1.54 billion at year end compared to $868 million the year before.