Derrimon Trading Ltd. recently released its audited financials for the fiscal year ending December 31, 2022 this week. The Group’s financial performance has been boosted by management’s goal of establishing a diverse collection of firms, as sales and profits increased by 4% and 38%, respectively.
Derrimon’s M&A activity has generally been centered on food or food-related activities and grocery retail since its IPO in 2013, beginning with the purchase of Caribbean Flavours & Fragrances Ltd in 2014.
In 2021 the Company earmarked acquiring retail entities in the United States using proceeds from the $3.5 billion raised in its Additional Public Offering (APO), which management projected profits would increase to $800 million in a Gleaner article dated January 8, 2021. At the end of FY2022, DTL’s revenue improved to $18.42 billion (FY 2021: $17.74 billion), while profits increased $169.45 million year over year to $617.63 million (FY 2021: $448.18 million), still shy of the target.
Despite this, the Group continues to grow year after year, being primarily involved in the distribution of different international and local brands. This recent performance was attributed to the performance of the Group’s ability to navigate adverse market dynamics, such as the lingering effects of the worldwide pandemic, inflationary economic pressures, and general economic downturn, to the agility of its American market and domestic operations.
Many milestones contributed to the expansion of the Group’s business throughout the fiscal year, as did other variables that affected the Group’s excellent financial performance. These are some examples:
- Completion of the new Select Grocers Supermarket in the Millennium Mall in May Pen, Clarendon, and opening of this sophisticated, cutting-edge facility on November 16, 2022.
- Completion of the acquisition of Spicy Hill Farms Ltd, as well as the construction and upgrading of the new facility in Kingston.
- Negotiations with Arosa Limited shareholders and complete acquisition of operations on April 1, 2022.
- Installation of a new retail technology platform – Microsoft LS Retail – in the new Select Grocers supermarket, followed by a rollout to all retail locations.
- Growth of its exclusive brand, Delect, as well as active creation and implementation of marketing tactics.
- Revenue, margins, and profitability in the Retail, Distribution, and eCommerce segments of the Company have continued to expand.