GRACE, Kennedy and Company Limited's unaudited results for the six-month period ended June 30, 2003, show that the Group continues to record satisfactory results.
Revenues for the period were $10.6 billion, as against $9 billion in 2002, a 17.6 per cent increase.
Net profit attributable to shareholders increased by 13.6 per cent from $611 million to $694.4 million, representing earnings per Stock Unit of $2.16 compared with $1.89 for 2002.
In presenting this Interim Report to Stockholders, Chairman and Chief Executive Officer, Douglas Orane, pointed out that the company has adopted International Financial Reporting Standards (IFRS), (formerly International Accounting Standards) beginning with the 2003 financial year. He explained that in so doing, "the prior year information has been restated to comply with the new standards."
RESULTS
The report revealed that the Food Trading Division, the Financial Services Division and the Information Services Division continued to perform well, while the Retail and Trading Division, which is in an expansionist mode, turned in fair results.
For the Food Trading Division, notable progress was achieved with Grace-owned brands with sales in the international market increasing by 17 per cent.
The year-to-date international sales for Tropical Rhythms were up by 114 per cent an outstanding performance. This product also had the distinction of being awarded the Canadian Grand prix New Product Award for 2002-2003.
The Financial Services Division made significant strides in its drive to expand internationally. The Grace Caribbean Fixed Income Fund, an offshore mutual fund which was launched in Cayman in late 2002, was introduced in Trinidad and Tobago on July 3, 2003. In addition, the Company acquired 40 per cent of
a merchant bank in Barbados in a joint agreement with Cave Shepherd and Company Limited and United Insurance Company Limited.
EXPANSION IN JAMAICA
The division also began to expand in Jamaica assuming control of Citibank's retail business in Kingston and Montego Bay. According to Mr. Orane, the response from former Citibank customers to the First Global acquisition was very positive.
The Information Services Division also continued its expansion internationally, launching Bill Express in St. Lucia and putting in place plans to launch in Dominica and Grenada during the third quarter.
The Retail and Trading Division pursued a vigorous programme of expansion in Jamaica. Rapid and Sheffield Company Limited and Agro-Grace Limited opened new stores in Mandeville and Montego Bay respectively. Of some import was the signing of a Heads of Agreement with Pan Jamaica Investment Trust Limited to merge these companies with Hardware and Lumber Limited. Grace, Kennedy will retain controlling interest in this new venture. In addition, Hi-Lo Food Stores (Jamaica) Limited has acquired Value Master Supermarket in Negril and Bottomline Wholesale and Haberdashery Limited on Hagley Park Road.
Mr. Orane pointed out that a satisfactory resolution was reached in the dispute between Kingston Wharves' shareholders and the Company involving the composition of Kingston Wharves' Board of Directors.
The company continued to pursue its programmes of grooming its young employees for the future. Accordingly, at its Business Conference in July a number of these younger staffers made presentations on the strategies being employed "to move closer to the final consumer."
Mr. Orane noted that Grace, Kennedy's service to Jamaica had been recognised by the award by the Prime Minister's Medal of Appreciation for services to Jamaica.
