GraceKennedy’s H1 Profit Dips as Q2 Undercuts Q1 Gains

• Food and Financial Services conglomerate, GraceKennedy Group Limited (GK), reported net profits of $2.12Bn for the three-month period ended June 30, 2025 (Q2 2025), a 12.2% decline compared to $2.42Bn in Q2 2024.
• Revenues for the quarter were up 6.6% to $44.80Bn aided by an overall uptick in revenue generated from its products and services as well as interest revenue.
• However, direct and operating expenditure growth outpaced revenues with an 8.6% increase year-over-year, closing the period at J$42.92Bn from J$39.52Bn. This contributed to profit before tax for the quarter to be J$2.95Bn, down 11.0% from J$3.31Bn in Q2 2024, as elevated group-wide costs offset revenue gains.
• With only a modest 3.0% expansion in earnings in Q1, the 12.2% earnings contraction in Q2 resulted in a falloff in GK’s six-month (H1 2025) earnings. Operating profit fell by 4.9% to J$7.07Bn for the six-month period due to a 28.6% decline in GK’s Money Services division. The division was adversely impacted by lower transaction volumes and remittance flows in Guyana and Trinidad & Tobago. However, gains in the Jamaican market helped soften the overall impact.
• GK’s stock price declined by 8.9% year-to-date, closing at $71.95 as at Tuesday. At this price, the stock is trading at a P/E ratio of 8.7x, below the Main Conglomerate Sector average of 11.4x.

(Sources: JSE Stock Exchange & NCBCM Research)