DTL reports 2% decline in year end net profit

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).

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2019-03-05T14:27:04+00:00