26.80% increase in revenue totalling $12.196 billion
Derrimon Trading Company Limited, a leading distributor of consumer goods, is reporting a successful nine-month performance in which revenues and profits rose to record levels.
The nine-month consolidated results for Derrimon Trading Company Limited saw revenues growing to $12.19 billion, an increase of $2.57 billion more than the $9.618 billion reported for the corresponding nine-month period in 2020. The growth in revenue can be attributed to the recovery achieved by all the local business units, gains from the new overseas subsidiaries and an overall improvement in the core business.
The revenues generated for the reporting period is $4.14 billion, which surpasses the record quarterly performance of $3.31 billion posted at third quarter of 2020. This growth of 24.97 per cent or $827.923 million can be attributed not only to the acquisition of the New York subsidiary (FoodSavers NY and Good Food For Less) in the first quarter of 2021, but also to improved contributions from subsidiaries Caribbean Flavours and Fragrances Limited (CFF), the record performance by Woodcats International Limited and steady growth within the distribution and retail business segments.
Difficulties in the business environment
This is a commendable performance, given that we are still operation in a business environment where the difficulties faced from logistics and shipping costs directly affecting this industry and the loss of 16 business days due to lockdowns during the quarter directly affecting consumers’ abilities to make purchases.
Commenting on the record performance, Chairman and CEO Derrick Cotterell remarked that “the performance recorded and reported in the third quarter and for the nine-month reporting period is a strong indication that the strategies of business diversification, currency diversification and industry integration continue to be strategic pillars for the performance of the business”.
He added: “And despite the challenges brought forth by the pandemic, Derrimon Trading continues to remain resilient, as we move forward with our Derrimon 2.0 vision.”
He stressed that this is especially the case as the company embarks on this next decade of change and growth.
“We anticipate the opening of our Select Brands May Pen in early 2022, which will be the largest supermarket in Central Jamaica and the continued growth of our portfolio of proprietary brands including our recently launched Refresh water brand,” Cotterell said.
Derrimon Trading issued share capital rose significantly to $4.53 billion due to their successful additional public offer at the start of this financial year.