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).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
