While GraceKennedy Limited (GK) was able to grow its revenue by 16 per cent or $4.86 billion to $36.26 billion in its first quarter (January – March), the 16 per cent rise in expenses to $34.70 billion during the period chipped away at the company’s consolidated net profit which only grew by two per cent to $1.88 billion.

GK’s food trading segment delivered another double-digit rise to the tune of 18 per cent to $29.51 billion. However, the logistical issues and margin pressures continued to impact the operations globally. Its banking and investments and insurance segments hit record highs of $1.76 billion and $2.85 billion, respectively. The group’s money services segment saw a nine per cent reduction to $2.14 billion due to lower remittance flows and foreign currency volatility during the period.

“The geopolitical developments of the last few months, coupled with the ongoing challenges related to the pandemic, have resulted in our outlook being cautious for the rest of 2022, but this does not daunt us in any way, and the GK team continues to execute our strategic initiatives with determination – we are always up for any challenge. That’s part of the reason that GK is able to celebrate our 100th anniversary this year! Our M&A strategy is well-advanced, and we are particularly excited about our latest investment in Bluedot, which feeds into our digital transformation strategy and deep focus on customer-centricity,” said Chief Executive Officer Donald Wehby in the press release.

Despite the group’s share of associate and joint ventures rising by 14 per cent to $324.35 million and other income of $898.96 million, the increase in net interest expense saw the profit before taxation (PBT) rise by two per cent to $2.57 billion. Net profit attributable to shareholders grew by five per cent to $1.74 billion with an earnings per share of $1.75.

The banking and insurance segment grew by 205 per cent to a record $452.52 million in PBT with insurance achieving a similar feat of $198.32 million in PBT. Food trading moved by four per cent to a monumental $1.54 billion in PBT, but the international foods business saw a reduction in PBT due to significant charges incurred arising out of shipping and port delays in the United States. The money services segment experienced a 26 per cent reduction in PBT to $776.72 million which is the first time in years that the segment has experienced a reduction of this magnitude.

“The COVID-19 pandemic has taught us how critical it is to remain agile in the face of challenges, and the GK team continues to operate with this in mind, as we work together to mitigate the impact of headwinds on our businesses,” said Wehby.

GK’s total assets grew by 12 per cent on a year over year basis to $178.64 billion with the group’s cash and deposits at a record $26.49 billion. Total liabilities increased by nine per cent to $112.86 billion composing largely of $44.21 billion in deposits while equity attributable to shareholders rose by 19 per cent to hit $62.57 billion. GK will be paying a dividend of $0.48 on June 16 to shareholders on record as of May 27 totalling $476 million.

GK successfully launched its GK One mobile application in the Google Play and Apple App store during the quarter. The app allows users to pay bills, apply for a First Global Bank credit card and receive remittance payments to the GK One Wallet which is set to be launch in the coming months. GK Mutual Funds are expected to launch in the third quarter with Wehby set to expound on the company’s initiatives at its hybrid annual general meeting on May 25.

“It’s an exciting time for GraceKennedy. There are several important strategic initiatives underway in our businesses which are helping to shape a bright future for our company. We really have so much to be thankful for ­— our amazing GK team, business partners, loyal customers and all our supporters. We have been so humbled and honoured by the well wishes and words of encouragement we have received since the start of the year in recognition of GK100. Our anniversary is a year-long event, and we look forward to continuing our celebrations throughout 2022,” Wehby closed.