DTL reports 29% increase in net profit for 1Q, 2018

May 16, 2018

Derrimon Trading Limited (DTL) grew its Trading Income by 27%, to end the quarter at $1.94 billion compared to the $1.53 billion for the first quarter of 2018.

Cost of Sales increased by 27%% to $1.59billion for the period (2017: $1.25 billion). As a result, Gross Profit amounted to $353.48 million relative to $278.63 million the year prior, an increase of 27%. Other Income increased by 25% to close the period at $6.73 million.

Total operating expenses was $264.27 million for the period, representing an increase of 21% on the $218.11 million recorded in the prior year. Administrative expense totalled $229.82million, a 23% increase when compared to the $186.81 million in 2017. DTL reported a 10% increase in selling and distribution costs to close the quarter at $34.45 million (2017: $31.30 million).

First quarter operating profit posted a 46% growth to $95.94 million in contrast to $65.90 million booked a year earlier.

Finance Cost increased by 56% to total $38.37million for the period relative to $24.62 million in 2017.

Consequently, profit before taxation grew by 39% ending the period at $57.57million for the quarter compared to $41.28 million in 2017.  No taxes was reported for the period as such Net Profit amounted to $57.57million (2017: $41.27 million).

Total comprehensive income total $51.60 million versus $241.97 million reported a year earlier. The disparity is as a result of $206.35 million (2017: nil) booked for ‘increase in revaluation investment’.

Earnings per share closed the period at $0.21 (2017: $0.15). The twelve month trailing EPS amounted to $0.98. The total number of shares used in the computation amounted to 273,336,067 units. As at May 15, DTL stock was trading at $9.00.

Balance Sheet Highlight

As at March 31, 2018, the company’s assets totalled $2.67 billion, $17.30 million more than its value as at March 31, 2017 of $2.65 billion. The upward movement in the asset base was due to upward movement in fixed assets (49%), investment (74%), and cash & bank (44%). However the overall movement was tempered by a downward movement in inventory by 22% to 824.01 million from to a total of $1.06 billion, posted in 2017.

Shareholder Equity totalled $1.04 billion (2017: $886.93 million) which translated to a book value of $3.82 per share (2017: $3.24).


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