Strong growth in net profit and total assets
Jamaican distribution company, Derrimon Trading Company Limited (DTL) has seen strong growth in the business in 2022 through diversification and expansion in spite of the many challenges encountered throughout the year.
For the year ended December 31, 2022, DTL reported having consistent growth despite the many challenges experienced in the various markets and spaces in which the company operates. There were increases in profit, consolidated total assets and revenue for 2022.
DTL posted consolidated total assets of J$15.372 billion, which represents a 33.57 per cent or J$3.863 billion growth over the J$11.50 billion reported for the similar period ending December 31, 2021. Net profit ended the year at J$617.629 million, a J$169.45million or 37.81 per cent increase over 2021.
Consolidated revenue came out at J$18.42 billion, a J$0.67 billion or 3.81 per cent increase over the 2021 reporting period while consolidated gross profit amounted to J$4.64 billion, a J$1.23 billion or 36.09 per cent increase over the J$3.41 billion reported in 2021 reporting period.
The company also reported operating profit of J$1.19 billion, representing a 51.15 per cent or J$402.58 million increase over the J$787.04 million reported in 2021 while consolidated pre-profit tax of J$726.046 million, reflected a J$170.327 million or 30.65 per cent increase over 2021.
Expansion and diversification strategy
DTL Chairman and CEO Derrick Cotterell in commenting on the financial performance stated, “during this year, our company continued with its various innovations as well as the expansion and diversification strategy that is being pursued”.
Cotterell added: “The revenue streams from the key US market operations and the domestic internal portfolio adjustments during the financial year were pivotal to the Group navigating the many market dynamics which remain negatively influenced by the lingering impacts of the global pandemic, inflationary economic pressures and general slowdown of economies.”
During the year there were many accomplishments contributing to the growth of the business and several factors that influenced the positive financial outcome. These include the completion of negotiations with the shareholders of Arosa Limited and full takeover of operations on April 1, 2022, and the successful completion of the full build out and opening of the new Select Grocers Supermarket at the Millennium Mall in May Pen, Clarendon last November.
This was in addition to DTL’s successful completion of the acquisition of Spicy Hill Farms Limited and the start of retrofitting of equipment at their new factory at Marcus Garvey Drive.
Aligned with its diversification strategy, the company completed the implementation of its new retail technology platform – Microsoft LS Retail – in the new Select Grocers supermarket and with further roll out in all of its retail stores.
New products being introduced
DTL continues to expand and diversify the SKU (stock-keeping units) portfolio of the Derrimon Delect brand, introducing new products such as coconut milk, corned beef and mackerel to the existing line of products with an active development and implementation of the route to market strategies.
Continuing, Cotterell remarked: “Notwithstanding our financial results, the operations of our group of companies in many markets continue to expose us to various risks and challenges. However, given the diversification strategies, competence of our leadership and team, our vision and our focus, we are confident that our group of companies will continue to produce positive results to create and maintain wealth for our shareholders. I’d like to thank our loyal management team and employees for their commitment and dedication during this year, as well as our shareholders, customers and other stakeholders for their continued support.”
DTL has been a major distributor and manufacturer of consumer goods to the Jamaican market since 1998 with principal operations located at 235 Marcus Garvey Drive, Kingston 11. The company 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, Arosa Limited and Spicy Hill Farms, in addition to logistics support, warehouse storage rental, and cold storage facilities.