Derrimon Trading Limited (DTL)
For the six months ended June 30, 2017:
Derrimon Trading Limited (DTL) Trading Income increased by 6%, to end the nine months at $4.92 billion compared to the $4.66 billion for the prior period. For the quarter the company reported a 32% increase in Trading Income totalling $1.77 billion relative to $1.34 billion.
Cost of Sales declined marginally by $7.90 million to $3.98 billion for the period (2016: $3.97 billion). As a result, Gross Profit amounted to $939.22 million relative to $685.89 million the year prior, an increase of 37% year over year. DTL noted that, “This improvement was mainly due to strategies employed within both the distribution & retail segments of the business to realign the product portfolio and focus more on higher yielding products while reducing the contribution of lower yielding products.”
Other Income for the period improved 60% to close the nine months at $17.85 million relative to $11.13 million in 2016.
Total operating expenses was $721.21 million for the period, representing a growth of 35% on the $533.81 million recorded in the prior year. Administrative expense totaled $639.21 million, 50% higher when compared to the $425.87 million in 2016. While selling and distribution expenses recorded a 24% decline for the period, totaling $82 million (2016: $107.94 million).The management of DTL has indicated that “The major factors for this increase were the increase in operational cost driven by the two (2) new stores, increases in the general cost for utilities, marketing expenses, scheduled repairs & maintenance of our equipment and staff costs.”
Finance Cost increased by 88% to total $104.31 million for the period relative to $55.37 million in 2016. The company indicated that “this cost reflects the use of short-term funding in order to capitalize on trade deals and other opportunities, loans interest and bank service charges owing to the increase usage of debit and credit cards transactions at our various retail stores by customers and other bank commissions.”
Consequently, profit before taxation grew by 22% ending the period at $131.56 million for the nine months compared to $107.83 million in 2016. No taxes were reported for the period as such Net Profit amounted to $131.56 million a 22% increase. For the quarter, the company reported a 56% increase in Net Profits to $27.23 million (2016: $17.46 million).
Earnings per share (EPS) closed the period at $0.48 (2016: $0.39), while for the quarter, the EPS was $0.10 (2016: $0.06). The twelve-month trailing EPS amounted to $0.51. The total number of shares used in the computation amounted to 273,336,067 units. Additionally, The company closed the at $7.00 as at the end of trading on November 14, 2017.
The company also reported Total Comprehensive Income of $280.56 million a 44% increase to the $195.19 million in 2016. This was mainly due to a $59.57 million increase in the revaluation of fixed assets reported.
Balance Sheet Highlights
As at September 30, 2017, the company’s assets totaled $2.27 billion, $375.34 million more than its value as at September 30, 2016 of $1.89 billion. This was due to 30% increase in inventory to total $996.33 million relative to $765.25 million in 2016. Cash also increased 17% or $28 million to total $193.08 million
Shareholder Equity totaled $1.12 billion (2016: $750.01 million) which translated to a book value of $4.09 per share (2016: $2.74).
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