Jamaican distribution group, Derrimon Trading Limited (DTL) is accelerating the build out of the new Select Grocers Limited subsidiary at the Millennium Mall in Mineral Heights, Clarendon.

The store, which is scheduled for opening this summer, is slated to be the largest supermarket in central Jamaica. The good news comes, as DTL reported stable financial results for the March quarter, which saw the successful completion of its latest acquisition, Spicy Hills Farms Limited and increased revenue.

Revenue jumped to J$4.24 billion, which is J$229.63 million over the J$4.01 billion reported for the comparative period last year. Gross profit for the quarter amounted to J$803.21 million, which represents an increase of J$51.47 million (6.85 per cent) above the J$751.73 million reported for 2021.

Commenting on the accelerated work being done on the new Select Grocers store, Chairman and CEO, Derrick Cotterell explained, “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 also acknowledged that there are challenging times ahead for businesses. However, he remained confident that DTL have the right talent and leadership which will continue to diversify the business and operating markets to deliver on their plans for the future. 

According to Cotterell, “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.” 

Net profit up 7.7% to J$172.99 million

During the March quarter, DTL reported a 12 per cent increase in profit before tax of J$197.70 million, an increase of J$21.20 million over the J$176.50 million reported for the comparative period. Net profit ended the quarter at J$172.99 million, up J$12.38 million above the J$160.61 million reported for the comparative period.

The core local retail- and distribution operations-generated revenues of J$2.82 billion for the first quarter and with the implementation of many cost containment and efficiencies strategies, net profit climbed to J$82.21 million, which is J$48.74 million more or a 145.67 per cent increase over the J$33.46 million reported for similar period last year.  

The DTL Chairman and CEO admitted, “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.” 

Spicy Hill Farms acquisition

At the start of the quarter, DTL acquired 100 per cent ownership of Spicy Hill Farms, an award-winning manufacturer of the authentic Jamaican ram goat soup “mannish water”.

Spicy Hill’s 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 Caribbean, United States, United Kingdom and Canada. 

Production is being ramped up for Spicy Hills Farms which will provide additional products to both our distribution and retail business locally and overseas. DTL is a major distributor of consumer goods to the Jamaican market since 1998 with principal operations located at 235 Marcus Garvey Drive, Kingston.

DTL also operates the Sampars Cash & Carry and Select Grocers retail locations with controlling interests in Caribbean Flavours & Fragrances and Woodcats International.

Derrimon’s extensive portfolio also includes New York businesses such as Food Savers NY Inc. and Good Foods For Less LLC NY and recently acquired Spicy Hill Farms in addition to logistics support, warehouse storage rental, and cold storage facilities.