August 15, 2023
Derrimon Trading Limited (DTL) for the six months ended June 30, 2023 reported a 7% increase in trading income totalling $9.50 billion compared to $8.86 billion in the corresponding period last year. Trading income for the second quarter had a 1% decrease to close at $4.58 billion compared to $4.62 billion for the comparable quarter of 2022.
Cost of sales amounted to $7.33 billion (2022: $6.97 billion), this represents an increase of 5% year over year. Consequently, gross profit increased by 14% to $2.17 billion compared to $1.90 billion for the six months ended June 30, 2022. The company booked gross profit of $1.15 billion for the second quarter versus $1.09 billion reported for the similar quarter of 2022.
Administrative expenses decreased by 6% to close at $1.33 billion (2022: $1.40 billion), while selling & distribution expenses increased by 21% from $248.81 million in 2022 to $300.14 million in the period under review. As a result, total operating expenses for the six months ended June 30, 2023, amounted to $1.63 billion, a 2% decrease relative to $1.65 billion reported in 2022.
Operating profit before finance costs for the six months ended June 30, 2023, amounted to $675.63 million, a 34% increase relative to $504.13 million reported in 2022. Operating profit before finance costs for the second quarter amounted to 485.78 million (2022: $222.34 million).
Finance costs totalled $446.53 million a 155% increase from the corresponding period last year. (2022: $175.02 million).
Profit before taxation for the six months ended June 30, 2023, amounted to $229.10 million, a 30% decrease relative to $329.11 million reported in 2022. Profit before taxation for the second quarter amounted to $159.09 million (2022: $131.41 million).
Taxation for the six months had a 31% increase to reach $29.78 million (2022: $43.05 million).
Net profit attributable to shareholders of the company for the six months amounted to $174.55 million, a 35% decrease from the $270.41 million reported in 2022. For the second quarter, net profit attributable to shareholders of the company was $134.01 million (2022: $103.83 million).
Earnings per share (EPS) for the six months amounted to $0.04 (2022: $0.06), while EPS for the quarter totalled $0.03 (2022: $0.02). The twelve-month trailing EPS was $0.11, and the number of shares used in these calculations was 4,533,360,670.
Notably, DTL’s stock price closed the trading period on August 14, 2023, at a price of $1.95 with a corresponding P/E ratio of 18.26x.
Balance Sheet Highlights
The company’s assets totalled $16.70 billion (2022: $12.99 billion). Management noted that this growth was achieved by the significant rise in current assets to $8.82 billion as a result of the entities acquired.
Shareholder’s equity was $6.31 billion (2022: $5.82 billion), representing a book value per share of $1.39 (2022: $1.28).
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