Wehby - Grace's CFO and Moss-Solomon Grace Director - File LOCAL CONGLOMERATE Grace, Kennedy & Company managed to post very encouraging figures for its unaudited results for the nine-month period ended September 2002.
The Group achieved revenues for the period of $13.5 billion (2001: $11.2 billion) an increase of $2.2 billion or 19.9 per cent. The net profit attributable to stockholders increased by $239.6 million over the corresponding period of 2001, moving from $652.0 million to $891.6 million, an increase of 36.7 per cent per cent. This represents Earnings per Stock Unit of $3.32 (2001: $2.43). The Food Trading Division showed good results for the nine-month period, with most of its companies continuing to perform above expectations. Grace Foods & Services Company has continued its positive trend with Grace-owned brands growing in the domestic market by 15 per over last year. The international business section continues to perform well in the north eastern USA, Belize and the northern Caribbean and new markets have now been opened up in Panama and Holland. Grace owned brand sales internationally are up 28 per cent over last year.
The Retail and Trading Division generated increased revenues in comparison to the same nine-month period of last year. Hi-Lo Food Stores (Jamaica) Limited launched a new supermarket concept called "Basix" at Tropical Plaza, which delivers more attractive food prices while operating at a lower cost structure. Agro-Grace Limited purchased CASCO in Mandeville to make the company the number one agricultural retailer in Jamaica. Rapid & Sheffield Company Limited purchased Colour Choice hardware in St. Ann's Bay. The cost of expansion programmes coupled with the decline in volumes at Versair In-Flite Services Limited due to the effects of 9/11, have resulted in a decline in profits for the Division.
The Financial Services Division has continued its trend of outstanding results for the nine-month period. Grace, Kennedy Capital Services Limited launched its first overseas mutual fund in early October. This fund which is US dollar denominated is called the Grace Caribbean Fixed Income Fund and is listed on the Cayman Stock Exchange. The interest shown since the fund's launch has been strong and it is expected to do very well. The Maritime Division recorded good results for the third quarter. Kingston Wharves Limited has performed above expectations as a result of cost saving measures introduced and increased traffic volumes. The dredging exercise which commenced earlier this year was completed during the quarter, thus giving the terminal more flexibility when berthing vessels. Port Services Limited has performed well in comparison to the same nine-month period last year.
Transaction volumes of remittances have continued to increase in the Information Services Division despite the recessionary trends in developed countries. The division made significant investment in expanding its services globally with the launch of Caribbean Outpost in New York on 7th September, as well as researching and introducing other new services and expanding its regional networks. During the quarter, the Division purchased a 30 per cent shareholding in Acra Financial Services Inc., a Western Union agent in Haiti.
On 4th October, Mrs. Lydia Kennedy, matriarch of the Kennedy family passed away. She was the widow of Grace, Kennedy's second Chairman, the late Mr. Luis Fred Kennedy and the mother of the company's senior executive Mr. Francis X. Kennedy. At the Extraordinary General Meeting in November 2000, nine million shares were approved for sale to all permanent members of staff in continuation of Grace, Kennedy's policy of employee share ownership. Of this amount 7,257,522 have been sold and the balance was offered to staff in September 2002.
The Board of Grace, Kennedy & Company Limited appointed Mr. Thomas Craig as a Director of the company on 26th September. Mr. Craig is the Managing Director and co-founder of the Monitor Group of Boston, USA. This is in keeping with the company's decision to increase the percentage of external directors in line with trends of corporate governance practices worldwide and to increase the number of directors with international experience.
Grace, Kennedy's ongoing contribution to the University of the West Indies was publicly recognised at a function recently hosted by Professor Kenneth Hall, Principal at the Mona Campus. The company's $20 million annual contribution consists, among other things, the S. Carlton Alexander Chair in Management Studies, the James S. Moss-Solomon Snr. Chair in Environmental Studies and one Executive in Residence, Mr. James Moss-Solomon Jr., as well as, several scholarships and bursaries.
