Head of Consumers Equity Research
October 17 2019
GK JA is a diversified conglomerate in Jamaica, with leading interests in F&B and financial services. It was founded in 1922 as a small trading company and wharf operator. Today, the group has 45 subsidiaries and associated companies globally, with 1,789 workers in 20 offices.
GK JA’s FY 18-22 earnings CAGR of 5% will be driven by its dominance of the payments business in the Caribbean. It is the exclusive agent for Western Union – the region’s dominant money transfer platform. Remittances represent over one-tenth of GDP and we expect them to grow by 7% CAGR in the next three years.
GK JA has invested heavily in branding and distribution, which will boost its earnings profile. The company is one of biggest food producers in the Caribbean. Its flagship food brand is Grace, which has regularly ranked as one of the top brands in the country and in the diaspora. One-quarter of Grace’s items are produced in six factories in Jamaica. Branding and distribution is a major defence against competition; we expect food business operating earnings CAGR of 11% in FY 19-22.
The content listed on this page is freely available and contains no investment recommendations. It is therefore not classified as research under MiFID II. All reasonable steps have been taken to ensure this content is accurate at the time of publication. Information provided should not be construed as investment, financial or professional advice under any circumstances. For more information, please see our Terms & Conditions.