THE performance of GraceKennedy’s Money Services (GKMS) division continues to be hampered by a sluggish remittance market as both revenue and profit for the segment fell short of the previous year for the first quarter ended March 31, 2025.

Revenues for the period declined by 5.8 per cent to $1.96 billion, while profit dropped by 31.1 per cent to $489 million.

“Our money services segment recorded a decline on profit year over year, largely attributed to reduced remittance flows and transaction volumes in Guyana and Trinidad and Tobago. This decline was partially offset by the continued growth of our market share in Jamaica — which is our largest remittance market,” the company told shareholders in the latest quarterly report.

Remittances remain Jamaica’s second-largest source of foreign exchange, behind tourism, with the US accounting for nearly 70 per cent of total inflows. After declining by approximately US$67 million or over $10 billion in 2023, Jamaica’s remittance inflows further fell by nearly 0.5 per cent last year to total US$3.36 billion, marking the third-consecutive year of decline.

However, further threats to this critical revenue stream loom, especially if a recent proposal by US President Donald Trump to impose a 5 per cent tax on international money transfers made by non-US citizens is to take effect. Should this be enacted it could further weaken an already softening market, raising concerns for economies heavily reliant on these cross-border money transfers.

In response, GK has intensified efforts to expand its digital footprint while continuing to increase the number of Western Union locations across the island. A key focus of the company’s strategy is the ongoing roll-out and enhancement of its digital remittance platforms.

“While there has been noticeable short-term pressure on overall earnings in this segment, we expect long-term benefits from our digital remittance platform — the GK One app — as it scales up and operational efficiencies improve,” the directors noted while pointing to new features of the app, such as GK One Send, which now enables customers to transfer funds to bank accounts and Direct to Wallet, which allows users to receive funds straight to their GK One mobile wallet.

“The GK One app continues to be the key driver of GKFG’s digital transformation, offering an efficient channel for delivering financial services. In 2025 the app has maintained its position as Jamaica’s leading digital wallet for remittances. Plans are under way to launch the app in the Cayman Islands, Guyana, and Trinidad and Tobago this year, further strengthening our regional footprint and opening new avenues for growth,” they added.

For the full three-month period the GraceKennedy Group reported overall revenues of $44.1 billion and profit of $2.3 billion, with its food division continuing to lead performance and accounting for more than $35 billion of the total output. Strong results also came from the insurance, banking, and investment segments, which recorded both marginal and meaningful growth.

“We remain focused on delivering sustainable growth, and our 2025 performance to date reflects the strength of our diversified group and the resilience and agility of our team. Notwithstanding global economic headwinds we continue to build momentum across both our food and financial divisions and remain committed to creating lasting value for all our stakeholders while we advance our vision of becoming the number one Caribbean brand in the world,” Group CEO Frank James commented.