Key Points:

GraceKennedy Limited’s revenue rose 5.5% to $89 billion for H1 2025, but profits fell to $4.4 billion due to higher warehousing and logistics costs.

The company is addressing supply chain issues with efficiency initiatives and growing its international food business, while domestic retail also showed revenue and profit gains.

Non-food segments had mixed results, with money services impacted by remittance changes; management focuses on efficiency and supplier collaboration to stay competitive

Maintaining revenue growth up to its half-year period ended June 30, 2025, large consumer group GraceKennedy Limited has said it continues to closely monitor the evolving trade environment as it also assesses potential impacts on its food business.

After navigating what it described as a “challenging operating environment”, the company reported a near six per cent increase in revenue, reaching $89 billion for the six-month period. However, profits over the period declined to $4.4 billion, down from $4.7 billion in the prior year.

“Profitability was impacted by increased warehousing and logistic expenses, as we built inventory to better position ourselves to better meet consumer demand amid ongoing global supply chain uncertainty,” the company’s directors said in its latest report to shareholders.

Supply chain disruptions which have continued to impact trade for local businesses have led to delays in the delivery of goods, increased operational costs, and inventory shortages in some instances. These disruptions, driven by factors such as global shipping bottlenecks, raw material shortages, and geopolitical tensions worsened by a wave of US tariffs recently imposed by President Trump, have all made it difficult for companies to maintain steady stock levels and to meet customer demand. As a result, many businesses have had to seek alternative suppliers, absorb higher prices, or pass costs on to consumers, which has ultimately affected competitiveness and their profit margins.

“To address these challenges we have launched targeted initiatives aimed at streamlining our supply chain processes to future-proof our business and maintain service levels. These efforts are expected to help close performance gaps over the remainder of the year,” GK’s directors led by Chairman Gordon Shirley and Group CEO Frank James noted

GK’s food business, which accounts for the majority of revenues, contributed $69.7 billion for the six months. Its performance was supported by $9.8 billion in out-turns from the insurance segment, $5.3 billion from the banking and investment, and $4.1 billion from its money services division, which continues to be weighed down by ongoing shifts in the global remittance market.

As the group pushes towards its Vision 2030 goal of earning 70 per cent of its revenue outside of Jamaica, its international food business, now under the leadership of Andrea Coy, delivered solid results, achieving robust revenue growth and double-digit gains in profitability. GK Foods (USA) LLC saw substantial growth across both the Grace and La Fe brands, while Grace Foods UK also recorded increased revenue and profit.

Within the domestic market, the group’s Hi-Lo supermarket chain was said to have also demonstrated meaningful growth in revenue and profit despite inflationary pressures.

With global uncertainties complicating business planning and leaving companies vulnerable to external shocks, the directors reaffirmed the group’s commitment to maintaining competitiveness while minimising consumer impact.

“We are enhancing operational efficiencies, optimising sourcing strategies while collaborating closely with our suppliers and partners,” they added.