Derrimon Trading Company Limited (DTL) has showcased robust revenue growth for the first quarter of 2025 across key business segments despite what it called a challenging economic environment.

The group, in its unaudited financial results for the period ended March 31, recorded consolidated revenues of J$4.30 billion, a 20.78 per cent increase over the J$3.60 billion reported in Q1 2024.

This growth was largely driven by the performance of its distribution and retail operations, which saw a significant revenue boost of J$1.01 billion to close at J$3.54 billion. This segment benefited from strategic initiatives focused on expanding the sale of higher-margin products, stronger consumer acceptance of proprietary brands such as the Delect product line and Refresh beverages, and increased customer basket sizes across Sampars and Select Grocers locations.

Gross profit also improved by 22.74 per cent, rising to J$1.11 billion from J$906.40 million in the prior year. Despite the impressive revenue performance in topline and operating profit, the group’s net profit declined slightly by 1.96 per cent to J$57.08 million, down from J$58.20 million in Q1 2024. Earnings per share stood at J$0.01. Profit before tax was reported at J$69.59 million.

Commenting on the results, Derrimon CEO Ian Kelly said: “These results underscore the resilience and adaptability of the Derrimon Group. Our focus on expanding high-margin product lines and strengthening our proprietary brands is paying off. We remain committed to innovation and operational excellence across all subsidiaries, even as we continue to manage the impact of global economic shifts, supply chain challenges, and financing costs. We are confident in our ability to deliver sustainable value for our stakeholders in the months ahead.”

Caribbean Flavours & Fragrances Ltd (CFF) emerged as a top performer during the first quarter, achieving a 20 per cent revenue increase and nearly tripling its net profit, driven largely by a robust export strategy. Woodcats International also posted solid gains, recording higher revenues and improved operating profit despite challenges in raw material sourcing. Meanwhile, Spicy Hill Farms maintained steady growth, buoyed by the successful launch of new product lines. In contrast, Arosa Ltd faced setbacks during the quarter due to capacity constraints and a decline in tourism demand, impacting overall performance.

Total assets for the group rose slightly to J$16.84 billion, up from J$16.54 billion year-over-year. However, shareholders’ equity dipped by 7.81 per cent to J$6.39 billion, while liabilities increased by 8.73 per cent to J$10.45 billion due to higher lease liabilities and short-term loans.

Kelly, who took over as CEO at the beginning of the year, emphasised that the group’s strategic direction remains focused on operational efficiency, brand enhancement, and readiness for expansion. 

“We are proud of what we have accomplished thus far and look forward to driving continued growth through sound leadership and disciplined execution,” he added.

DTL’s stock price showed a modest gain during the quarter, ending at J$2.00, up from J$1.96 at the start of the year, reflecting a positive outlook from investors despite broader market volatility.