GraceKennedy Ltd (GK) has released their September 2020 (Q3) numbers. Here are the highlights.
This Quarter (2020Q3) vs Same Quarter Last Year
- Operating Revenue was $29.59b vs $25.54b (15.86%)
GK has found a way to improve the revenue and margins of its largest segment – Food trading, very impressive. We estimate the Food trading division grew at about 14% this quarter. More importantly, they have found a way to convert a greater share of this revenue to profits, more than doubling its margins in the prior year! Management says this was mainly as a results of the international food business (GK Foods (USA) whose results were very strong beating its targets. It is benefiting from increased and demand and expanded distribution channels
- Net Income totaled $1.88b vs $1.44b (30.69%)
Impressive growth, especially considering their size. Another big highlight here is that for this quarter, the Food Trading segment earned profits before tax of almost 2 and a half times what it earned last year!
- Loans and Advances was $31.80b vs $28.70b (10.81%)
Being able to grow loans is also impressive, given the global challenges
Year To Date (2020Q3)
- Operating Revenue was $86.13b. Up by 11.80% or 9.09b YTD YoY.
Revenue is up YTD, showing the resilience of the group especially over the last 2 quarters which most companies continue to find challenging. They have also made significant gains in improving their margins. Food trading grew 11%, Insurance 28% & Money Services 12%. The other segment ‘Banking & Investments’ is up slightly
- Net Income totaled $4.93b. Up by 32.89% or 1.22b YTD YoY.
Despite the global challenges they have found a way to deliver consistent growth for the last 3 quarters. Between January to September (before taxes), the Food trading division has seen profits grow 86%, Money Services grew 28%, Insurance 10%. Banking is down YTD
This is just a summary. For more charts, ratios and other details visit GK’s page here