GK Foods International Drives GraceKennedy’s Impressive 2020 (Q3) Results

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
Net Income / Net Loss
Quarterly Financials 1.02b 2019Q1 1.25b 2019Q2 1.44b 2019Q3 1.39b 2019Q4 1.45b 2020Q1 1.60b 2020Q2 1.88b 2020Q3

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
Net Income / Net Loss
Quarterly Financials 1.02b 2019Q1 2.27b 2019Q2 3.71b 2019Q3 5.10b 2019Q4 1.45b 2020Q1 3.05b 2020Q2 4.93b 2020Q3

This is just a summary. For more charts, ratios and other details visit GK’s page here

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