Grace Kennedy Profit Impacted by New Accounting Standards

• Grace Kennedy’s net profit for the six-months ended June 2019 decreased to $2.27Bn (EPS: $2.03), down 7.3% from $2.45Bn (EPS: $2.17) in 2018.
• Though there was a 6.5% increase in revenue from $48.37Mn to $51.49Mn, profit was negatively impacted by the newly adopted accounting standard on leases, IFRS 16, which led to additional expenses of $115.00Mn in addition to, post-employment benefit expenses relating to IAS 19 increasing by $189.00Mn.
• Even though there is a decrease in profit, the Group expects to meet its 12-month profit target for 2019 and plans to pay a dividend of 40 cents per share which is equivalent to $397Mn on September 26, 2019.
• The stock has increased 12.08% year to date, closing Wednesday’s trading session at $71.17 per share. At its current price the stock now trades at a P/E of 14.98x earnings which is below the Main Market Conglomerate sector average of 22.90x earnings.

(Source: GraceKennedy Limited Financials)