DERRIMON TRADING REPORTS STRONG GROUP RESULTS WITH REVENUE OF J$13.81 BILLION FOR 9 MONTHS ENDED SEPTEMBER 30 2022
CARIBBEAN FLAVOURS & FRAGRANCES AND WOODCATS INTERNATIONAL ACHIEVE RECORD BREAKING QUARTERLY PERFORMANCE, AND NEW PRODUCTS LAUNCHED UNDER THE DELECT BRAND
(Kingston, Jamaica) Derrimon Trading Company Limited (“DTL” or the “Company”), reported having strong results across the Group for the nine (9) months ended September 30, 2022. The consolidated results for Derrimon Trading Company Limited, saw revenue of J$13.81 billion which is J$1.613 billion more than the J$12.195 billion reported for the corresponding nine (9) months period in 2021, resulting in a 13.23% increase in revenue.
The Group also reported gross profit of J$3.02 billion which represents an increase of J$659.586 million (28.00%) above the J$2.36 billion reported for the comparative period last year and despite rising raw material costs, higher distribution costs and new business lines, the gross margins across the Group improved from 19.34% to 21.86%.
Derrimon Trading Company Ltd, Chairman and CEO, Derrick Cotterell stated, “The improved performance being reported is a result of our growth strategy being achieved through our companies and business segments. The period also saw the first full quarter of consolidation for Arosa Limited and our second quarter with Spicy Hill Farms Limited. We are happy to report that Caribbean Flavours and Fragrances Limited (CFF) achieved one of its highest ever quarterly revenue performance to date while Woodcats International Limited has surpassed its budget and already outperformed the 2021 financial year performance. Our latest acquisitions, Arosa and Spicy Hill contributed moderately to the quarterly outrun with both Marnock businesses in New York improving in the third quarter after a slow start.”
The Group profit before tax for this reporting period was reported as J$525.23 million, an increase of J$60.29 million (12.97%) over the J$464.95 million reported for the comparative period. Consolidated net profit increased J$52.08 million (12.11%) to J$482.19 million, which has already exceeded the full year performance of J$444.22 million for 2021. Net profit attributable to shareholders grew by 12.09% to J$459.32 million with the group recording an earnings per share of $0.102 relative to the $0.092 or 10.71%.
The Group total assets grew by 35.85% to J$13.99 billion compared to the J$10.31 billion reported for similar period in 2021. This was influenced by the consolidation of the assets of all the new subsidiaries and continuous improvement in core assets.
The much anticipated 41,000 sq ft Select Grocers retail location at the Millennium Mall in Curatoe Hill, Mineral Heights, Clarendon, will open its doors to the public this week with an official Grand Opening slated for early 2022.
Cotterell acknowledged that despite the challenging times ahead for businesses, the Company 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. “The supply chain disruptions impacted the completion of our new Select Grocers location in Clarendon as key supplies which were expected earlier last year came in at different points of the year disrupting the planned grand opening. Over the last two months, we launched our new Delect branded products and will see improved revenues based on this expanded portfolio. The feedback from our customers has been great and the products are currently available islandwide through our various partners as well as at Select Grocers and Sampars locations. We look forward to the yuletide season which will see the company working assiduously to serve our customers at home and abroad with the goods they want at the best prices and value,” stated Cotterell.