Date: March 04, 2019
Derrimon Trading Limited (DTL), for the year ended December 31, 2018, reported trading income of $9.30 billion compared to the $6.72 billion for the prior comparable period, a 38% increase. For the quarter, trading income went up grossly by 64% closing at $2.96 billion (2017: $1.80 billion).
Cost of sales increased by 41% to $7.61 billion for the period (2017: $5.39 billion), As a result, Gross profit amounted to $1.69 billion relative to $1.34 billion for the prior comparable period, an increase of 27% year over year. Gross profit for the quarter totalled $557.22 million (2017: $396.58 million).
Other income for the period under review fell 74% to close the year end at $66.25 million relative to $257.13 million. While for the quarter, other income closed at $22.49 million (2017: $239.28 million).
Total operating expenses totalled $1.30 billion for the period, representing a growth of 14% on the $1.14 billion recorded in the prior corresponding period. Administrative expenses amounted to $1.07 billion, 6% higher when compared to the $1.01 billion in 2017. Selling and distribution expenses recorded a 72% increase for the period, totalling $233.72 million (2017: $135.67 million). For the quarter, administrative and selling and distribution expenses closed the period at $311.53 million (2017: $366.36 million) and $106.03 million (2017: $53.67 million), respectively.
Finance cost increased slightly to total $172.22 million (2017: $169.90 million). While, for the quarter, finance cost closed at $60.86 million versus $65.598 million in the previous comparable quarter.
Consequently, profit before taxation grew to $281.85 million compared to $281.80 million in 2017. After incurring tax charges of $4.63 million (2017: nil), net profit amounted to $277.21 million, a 2% decline when compared to $281.80 million in the prior corresponding period. For the quarter, the Company reported a 36% decline in net profit to $96.67 million (2017: $150.24 million). Net profit attributable to shareholders amounted to $249.12 million compared to $252.37 million recorded in 2017.
Earnings per share (EPS) closed the period at $0.91 (2017: $0.92), while for the quarter, the EPS was $0.03 (2017: $0.04). The total number of shares used in the computation amounted to 2,733,360,670 units. Notably, DTL closed the trading period on March 01, 2019 at a price of $2.64.
Balance Sheet Highlights:
As at December 31, 2018, the Company’s assets totaled $4.05 billion (2017: $2.89 billion), 40% more than its value as at December 31, 2017. This was due to largely to increases in ‘Goodwill’ and ‘Investments’ which closed at $163.94 million (2017: $33.22 million) and $180.41 million (2017: $95.85 million), respectively. Also, ‘Inventories and Receivables’ contributed to this increase amounting to $1.28 billion (2017: $795.55 million) and $1.17 billion (2017: $887.21 million), respectively.
Total Shareholders’ Equity totalled $1.06 billion (2017: $864.07 million), which translated to a book value of $0.39 per share (2017: $0.32).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
