GraceKennedy remains committed to its ambitious goal of becoming a US$2 billion revenue company, but the conglomerate says a key part of that strategy has yet to fall into place.

Speaking on Taking Stock with Kalilah Reynolds, Group CEO Frank James said the company continues to see strong organic growth across its operations, but acknowledged that the timeline for achieving the target has been affected by the absence of a major international acquisition.

“We remain confident that we will continue to grow our top line,” James said.

According to James, the US$2 billion revenue target was built on two primary assumptions: continued growth from GraceKennedy’s existing businesses and the acquisition of a significant food company outside Jamaica.

“Where the timeline has somewhat shifted is our acquisition of a large international food business,” he explained.

GraceKennedy has been active in the mergers and acquisitions space but has so far declined to pursue deals that do not align with its long-term strategy.

“It’s important for us that we’re not just going to do an M&A for ticking a box. It has to be the right strategic and cultural fit,” James said.

Despite the delay in securing a major acquisition, the company is continuing to expand through its existing operations.

James outlined a vision of transforming GraceKennedy into what he described as “the number one Caribbean brand in the world,” built around two core pillars: food and financial services.

The company has gradually streamlined its operations over the years, exiting businesses such as shipping, motor vehicle dealerships and travel agencies to focus on those two areas.

While food remains GraceKennedy’s largest source of revenue, James revealed that financial services has become an increasingly important profit driver.

“Our financial services group contributes about 20 per cent of our revenue but over 40 per cent of our profits,” he said.

The company is pursuing growth opportunities in both divisions, including expansion into new geographic markets, product innovation and digital transformation.

James highlighted growth in GraceKennedy’s insurance partnerships, expansion of its food distribution network in North America and continued investment in brands such as Caribbean Choice.

The comments come after a challenging 2025 for the company.

GraceKennedy reported record revenues of J$177.8 billion last year, surpassing US$1.1 billion for the first time. However, profits declined due largely to the impact of Hurricane Melissa, which disrupted operations at one of the company’s manufacturing facilities and generated significant insurance claims.

Additional pressures included higher logistics costs, increased provisions for credit losses and challenges within the remittance business.

James said many of those issues have now been addressed.

“The good news is that we have been addressing all of those matters,” he said.

He noted that the company returned to profit growth in the fourth quarter of 2025 after adjusting for hurricane-related losses and carried that momentum into the first quarter of 2026.

For the first quarter of 2026, GraceKennedy reported revenue growth of 7.5 per cent and pre-tax profit growth of approximately 12 per cent.

James also argued that the company’s stock is currently undervalued.

“We believe that the GraceKennedy stock is undervalued today,” he said, pointing to the group’s diversified operations, strong customer base and consistent revenue growth.

While he acknowledged that broader market conditions have weighed on the share price in recent years, he said management remains focused on executing its strategy, improving profitability and creating long-term value for shareholders.

For now, GraceKennedy’s path to US$2 billion appears to rest on a combination of continued organic growth and the possibility of a future acquisition.

Whether that milestone is achieved by 2030 may ultimately depend on when the company finds the right deal.

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