Jamaican-listed distributor Derrimon Trading Company Limited recorded noteworthy growth for the year ended December 31, 2021, despite some of the negative economic challenges and the lingering effects of the coronavirus (COVID-19) pandemic affecting overall logistics and supply chain issues.
The 12-month results for Derrimon Trading Company Limited registered consolidated revenue of J$17.744 billion, a 39 per cent increase over the 2020 reporting period and consolidated gross profit of J$3.409 billion (a 37.32 per cent increase over the 2020 reporting period).
The company also reported consolidated profit before tax of J$555.719 million, a 56 per cent increase and net profit after tax of J$448.183 million, a 44 per cent increase over the 2020 reporting period.
Derrimon also reported a reduction in core debt expense to J$111.958 million, which is 52.7 per cent below that reported in 2020.
Derrimon Group chairman and CEO, Derrick Cotterell, stated, “The growth in revenue can be attributed to the overall strategy of building a diversified group of companies, ensuring that the many challenges that accompanied the market decisions associated with the COVID-19 pandemic were cushioned, based on the diversity of our revenue streams.”
During the financial year, there were several activities that influenced the financial outcome of the group for the year-end of 2021, including the successful completion of the additional public offering in February 2021, which allowed for the broadening of the company’s capital base and provided additional cash to the group.
This also led to new acquisitions for the company including the US-based FoodSavers New York and Good Food For Less, and most recently, the acquisition of Spicy Hill Farms Limited in November 2021.
The accelerated build-out of the new Select Grocers Limited at the Millennium Mall in Mineral Heights, Clarendon, leaves a scheduled Spring 2022 opening and slated to be the largest supermarket in central Jamaica along with the implementation of the group’s new technology platform – Microsoft Business Central as well as, an increase in modern computer hardware have also attributed to supporting the business growth.
“At Derrimon, we continue to experience growth in revenue and profitability from our retail and online segments of the business, despite the negative impact on certain revenue segments driven mainly by the continued closure of schools, offices and limited operations in some restaurants and small shops in 2021,” noted Cotterell.
“As our operating environment continues to be influenced by many unforeseeable market changes and given that the impact of the COVID-19 pandemic will be present for the foreseeable future, we will continue as a team to diversify, build on our brands, manage our costs and implement new and innovative strategies that will continue to generate growth and success for the group and our shareholders,” he added.
The Derrimon Group also reported a reduction in its debt profile with debt stock falling by approximately J$2.176 billion.