DTL reports 2% increase in year end net profit

March 2, 2021

Derrimon Trading Limited (DTL), for the year ended December 31, 2020, reported trading income of $12.78 billion compared to the $12.65 billion for the prior comparable period, a 1% increase. For the quarter, trading income went up by 1% closing at $3.16 billion (2019: $3.12 billion).

Cost of sales contracted by a marginal 1% to $10.29 billion for the period (2019: $10.37 billion). As a result, Gross profit amounted to $2.48 billion relative to $2.28 billion for the prior comparable period, an increase of 9% year over year. Gross profit for the quarter totalled $642.16 million (2019: $619.93 million).

Other income for the period under review rose 159% to close the year end at $97.86 million relative to $37.77 million booked in the prior comparable period. While for the quarter, other income closed at $34.88 million (2019: $17.28 million).

Total operating expenses totalled $1.84 billion for the period, representing growth of 9% on the $1.69 billion recorded in the prior corresponding period. Of this, Administrative expenses amounted to $1.42 billion, 11% higher when compared to the $1.28 billion booked in 2019. Selling and distribution expenses recorded a 3% increase for the period, totalling $418.63 million (2019: $408.27 million). For the quarter, administrative and selling and distribution expenses closed the period at $286.98 million (2019: $296.41 million) and $114.56 million (2019: $125.53 million), respectively.

Finance cost increased to total $384.49 million (2019: $283.20 million). While, for the quarter, finance cost closed at $238.46 million versus $123.82 million in the previous comparable quarter.

Consequently, profit before taxation grew to $352.54 million compared to $345.73 million in 2019. After incurring tax charges of $44.10 million (2019: $43.02 million), net profit amounted to $308.44 million, a 2% growth when compared to $302.71 million in the prior corresponding period. For the quarter, the Company reported a 66% decline in net profit to $27.78 million (2019: $81.59 million). Net profit attributable to shareholders amounted to $279.83 million compared to $290.74 million recorded in 2019.

Earnings per share (EPS) closed the period at $0.102 (2019: $0.106), while for the quarter, the EPS was $0.01 (2019: $0.03). The total number of shares used in the computation amounted to 2,733,360,670 units. Notably, DTL closed the trading period on March 1, 2021 at a price of $2.54 with a corresponding P/E ratio of 24.81 times.

Balance Sheet Highlights:

As at December 31, 2020, the Company’s assets totaled $7.42 billion (2019: $5.78 billion), 28% more than its value as at December 31, 2019. ‘Right of use assets’ and ‘Receivables’ contributed to this increase amounting to $1.49 billion (2019: $1.04 billion) and $1.87 billion (2019: $1.03 billion), respectively.

Total Shareholders’ Equity totaled $1.43 billion (2019: $1.18 billion), which translated to a book value of $0.52 per share (2019: $0.43).




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