DERRIMON TRADING GROUP REPORTS A STABLE 1ST QUARTER EARNING OF J$4.24 BILLION
ACCELERATION OF PROGRESS FOR OPENING OF SELECT GROCER’S CLARENDON FOR SUMMER 2022
(Kingston, Jamaica) Derrimon Trading Company Limited (“DTL” or the “Company”), reported having stable results for the three (3) months ended March 31, 2022. The quarter saw the successful completion of their latest acquisition, Spicy Hills Farms Limited and the acceleration of work to complete the new Select Grocers retail store in the Millennium Mall in Cuartoe Hill, Clarendon.
The three (3) months consolidated results of the Group reflected an increased revenue of J$4.24 billion which is J$229.63 million (5.73%) over the J$4.01 billion reported for the comparative period last year and gross profit of J$803.21 million which represents an increase of J$51.47 million (6.85%) above the J$751.73 million reported for 2021. The Group also reported that the profit before tax for this reporting period was J$197.70 million, an increase of J$21.20 million (12.01%) over the J$176.50 million reported for the comparative period and net profit of J$172.99 million representing an increase of J$12.38 million (7.71%) above the J$160.61 million reported for the comparative period. These results include all subsidiaries of Derrimon Trading Company Limited.
The core local retail and distribution operations generated revenue of J$2.82 billion for the first quarter and with the implementation of many cost containment and efficiencies strategies, net profit after tax for the three (3) months period was J$82.21 million representing a J$48.74 million or 145.67% increase over the J$33.46 million reported for similar period last year.
Derrimon Trading Company Ltd, Chairman and CEO, Derrick Cotterell stated, “The impact from the present economic climate continues to affect the outturn of all our operations as reflected in this first quarter’s report. The global economic slowdown, as reported in many sectors, negatively impacted revenues in some of our business. The period also experienced significant price increases from our suppliers and we anticipate that this trend will continue for the foreseeable future. Our management team remains nimble with adjusting prices while absorbing as much of the exogenous shocks as possible in order to mitigate the impact on our customers,” stated Cotterell.
At the start of the quarter, the Company acquired 100% ownership of Spicy Hill Farms, an award-winning manufacturer of the authentic Jamaican Ram Goat Soup “Mannish Water” – products also include Ram-It-Up “Curry Goat Booster”, Granulated Scotch Bonnet Pepper, and Dried Thyme Leaves. These products are manufactured by the Company and are currently available in over 200 retail outlets throughout the island in addition to major stores within markets such as the United States, Canada, the United Kingdom and the Caribbean. Production is being ramped up for Spicy Hills Farms which will provide additional products to both our distribution and retail business locally and overseas.
The Company also reported on the acceleration of the build out of the new Select Grocers Limited at the Millennium Mall in Curatoe Hill, Mineral Heights, Clarendon, which is scheduled for a Summer 2022 opening and slated to be the largest supermarket in Central Jamaica. Cotterell shared, “We are excited about the continued build out of our new 41,000 sq ft Select Grocer’s retail location that will serve the Clarendon community and surrounding areas.”
Cotterell acknowledged the challenging times ahead for businesses, but remains confident that they have the right talent and leadership which will continue to diversify the business and operating markets to deliver on their plans for the future. “We continue to navigate the various challenges within the company, as well as the issues with logistics and supply chain which impacted the business in the first quarter. The gradual re-opening of the economy however, has provided a boost to our operations. We remain resolute and focused on achieving efficiency, consistent with our product availability, reducing stock outs of key supplies and making service delivery and customer experience central to our business performance” stated Cotterell.