November 12, 2021
Derrimon Trading Limited (DTL), for the nine months ended September 30, 2021, reported consolidated trading income of $12.20 billion, an increase of 27% when compared to the $9.62 billion booked in 2020. For the quarter, the Company reported a 25% increase in trading income totalling $4.14 billion relative to $3.32 billion in the previous corresponding quarter. DTL indicated that, “n can be attributed not only to the acquisition of the New York subsidiary in Q1 2021 but also to improved contribution from Caribbean Flavours and Fragrances Limited (CFF), the record performance by Woodcats International Limited and steady growth within the Distribution and Retail segments. This performance is commendable considering the continued difficulties faced from logistics and shipping costs as well as the loss of sixteen (16) business days caused by lockdowns experienced in Jamaica during the quarter.”
Cost of sales increased by 26% to $9.84 billion for the period (2020: $7.78 billion). As a result, Gross profit amounted to $2.36 billion relative to $1.84 billion the year prior, an increase of 28% year over year. Gross profit for the quarter totalled $819.96 million (2020: $640.94 million).
Other income for the period increased by 23% to close the nine months at $77.47 million compared to $62.97 million in 2020. For the quarter, other income closed at $35.23 million (2020: $21.52 million).
Total operating expenses was $1.89 billion for the period under review, representing a growth of 31% on the $1.44 billion recorded in the prior year. For the quarter, total operating expenses closed at $677.54 million (2020: $505.60 million). According to DTL, “The consolidation of our new subsidiary and higher electricity costs, lease payments, salaries and rent costs were the main drivers for this line item increase.”
Of this:
Administrative expenses totalled $1.58 billion, 39% more when compared to the $1.14 billion in 2020. Selling and distribution expenses recorded a 3% increase for the period, totalling $312.43 million (2020: $304.07 million). For the quarter, administrative expenses and selling & distribution expenses closed at $583.15 million (2020: $389.37 million) and $94.40 million (2020: $116.23 million), respectively.
Finance cost decreased by 45% amounting to $80.52 million for the period versus $146.04 million in 2020. For the quarter, finance cost closed at $34.12 million (2020: $54.91 million).
After incurring taxation of $45.16 million (2020: $34.84 million), Net profit amounted to $419.79 million, a 50% increase year over year when compared to $280.66 million reported in 2020. The Company posted a 48% climb in net profit to close the quarter at $133.98 million (2020 $90.70 million).
Net profit attributable to shareholders closed at $398.32 million (2020: $260.35 million), up 53% year over year. For the quarter net profit attributable to shareholders amounted to $128.83 million (2020: $85.11 million).
As a result, earnings per share (EPS) closed the consolidated period at $0.088 (2020: $0.095). For the quarter, EPS amounted to $0.028 (2020: $0.019). The twelve-month trailing EPS is $0.09. The total number of shares used in the computation amounted to 4,533,360,670 units. DTL closed the trading period on November 11, 2021 at a price of $2.36 with a corresponding P/E of 25.61 times.
Balance Sheet Highlights:
As at September 30, 2021, the Company’s consolidated total asset amounted to $10.25 billion, 79% more than the $5.72 billion booked as at September 30, 2020. Notably, ‘Investment in Associates’ totalled $1.37 billion (2020: nil). The growth in assets was also due to increases in ‘Receivables’ which amounted to $2.31 billion (2020: $1.46 billion).
Shareholders’ Equity totalled $5.73 billion (2020: $1.59 billion) representing a 260% uptick. This translated to a book value per share of $1.27 (2020: $0.58).
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