GraceKennedy to increase digital innovation in 2025, eyeing triple profit by 2030




The GraceKennedy (GK One) mobile app in 2024 claimed user growth and repeat usage rate, exceeding 80 per cent after launch of its send-remittance feature, enabling customers to send remittances via Western Union.

In October GK also introduced a third-party insurance product within the app through GKGI and accelerated its digital transformation with the launch of GKGOnline 2.0 in May, which allows customers to renew insurance policies in minutes using an enhanced web-based platform.

New CEO of GraceKennedy, Frank James indicates that in the new financial year the company will be scaling business with ambitious targets to double revenue and triple profits by 2030,

“With 70 per cent of our revenue and profits coming from markets outside Jamaica. But our vision extends beyond financial growth. We are also committed to our purpose which is to bring superior products and services to customers that contribute to a better global society and greater financial wellbeing.”

One plank of the strategy is digital applications. In its new annual report, the company asks, “Imagine a wallet that fits the world of GraceKennedy in your pocket. That’s our GK One app, which has solidified its status as Jamaica’s go to mobile wallet for remittances, with over 80 per cent of users returning for more. What’s the secret? Instant global transfers via Western Union, and, for the first time in Jamaica, insurance - right in the palm of your hand.

GKs new SAP S/4 HANA system, a next gen enterprise resource planning system, is streamlining operations and enhancing user experience, especially for GK’s food business.

GK is meanwhile engaging with M&A prospects in the financial services and food industries, including purchase of additional shares in Spur Tree Spices Jamaica Limited (Spur Tree) — a manufacturer of seasonings, spices, and canned produce — with total shareholding increased to 20.18 per cent. As a result, Spur Tree became an associated company of GK in April 2024.

In January 2024, GK completed the acquisition of several properties along Harbour Street in downtown Kingston, Jamaica, near our Group’s headquarters. The acquisition included the ICD Group’s head office and associated buildings, all of which are currently tenanted and generating commercially attractive rental income.

Management notes, “This strategic, long-term investment aligns with our vision by reinforcing our commitment to the revitalisation of downtown Kingston. Unibev Limited, our Jamaican manufacturing subsidiary specialising in spring water production, which was acquired in October 2023, delivered a strong performance in 2024, exceeding profitability targets.”

Financial performance

GK in 2024 reported f $167.0 billion, an increase of 7.8 per cent or $12.0 billion over the corresponding period in 2023. Profit before other income was $8.0 billion, a $449 million or 6.0 per cent increase compared to prior year; while profit before tax (PBT) was $12.3 billion, 8.6 per cent or $976 million higher.

Net profit was $8.9 billion, an increase of $485 million or 5.8 per cent when compared to the prior year. Total assets grew by $17.2 billion to $236.6 billion, while total liabilities grew by $9.0 billion to $145.2 billion.

Capital comprised shareholders’ equity of $87.0 billion and non-controlling interests of $4.4 billion, compared to 2023, when shareholders’ equity was $79.1 billion and non-controlling interest was $4.2 billion.

Return on equity was 10.1 per cent, compared to 10.3 per cent in 2023, while earnings per share grew from $7.86 to $8.52.

GK earns from four operating segments: Food, Banking & Investments, Insurance, and Money Services. Banking & Investments segment saw the highest percentage increase in revenue, followed by Insurance and Food segments. Money Services recorded a decline in revenue.

Group CEO James saluted previous GK leaders. My predecessor Don Wehby was instrumental in shaping GraceKennedy’s success, and I am truly grateful for his mentorship over the years. Don challenged and empowered me to grow, instilling in me a deep commitment to excellence. I also owe gratitude to other GK leaders of recent times— Douglas Orane and Raf Diaz—whose guidance also shaped my leadership approach and reinforced the values that define GraceKennedy. I also recognise the profound influence of their predecessors — Carlton Alexander, Luis Fred Kennedy, James Moss-Solomon Sr., Fred W. Kennedy, and Dr John Grace—whose vision and leadership built the strong foundation on which our Company stands today.

“My priority now is to build on the extraordinary legacy of these great leaders by staying true to GK’s core values and fostering a culture of collaboration and empowerment.”

Caribbean Money Daily



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