Date: March 02, 2020

Derrimon Trading Limited (DTL), for the year ended December 31, 2019, reported trading income of $12.65 billion compared to the $9.30 billion for the prior comparable period, a 36% increase. For the quarter, trading income went up grossly by 5%  closing at $3.12 billion (2018: $2.96 billion).

Cost of sales increased by 36% to $10.37 billion for the period (2018: $7.61 billion). As a result, Gross profit amounted to $2.28 billion relative to $1.69 billion for the prior comparable period, an increase of 35% year over year. Gross profit for the quarter totalled $619.93 million (2018: $557.22 million).

Other income for the period under review fell 43% to close the year end at $37.77 million relative to $66.25 million booked in the prior comparable period. While for the quarter, other income closed at $17.28 million (2018: $22.49 million).

Total operating expenses totalled $1.69 billion for the period, representing a growth of 30% on the $1.30 billion recorded in the prior corresponding period. Of this, Administrative expenses amounted to $1.28 billion, 20% higher when compared to the $1.07 billion in 2018. Selling and distribution expenses recorded a 75% increase for the period, totalling $408.27 million (2018: $233.72 million). For the quarter, administrative and selling and distribution expenses closed the period at $296.41 million (2018: $311.53 million) and $125.53 million (2018: $106.03 million), respectively.

Finance cost increased to total $298.60 million (2018: $172.22 million). While, for the quarter, finance cost closed at $139.23 million versus $60.86 million in the previous comparable quarter. In addition, finance income amounted to $15.41 million (2018: nil)

Consequently, profit before taxation grew to $345.73 million compared to $281.85 million in 2018. After incurring tax charges of $43.02 million (2018: $4.63 million), net profit amounted to $302.71 million, a 9% growth when compared to $277.21 million in the prior corresponding period. For the quarter, the Company reported a 16% decline in net profit to $81.59 million (2018: $96.67 million). Net profit attributable to shareholders amounted to $290.74 million compared to $249.12 million recorded in 2018.

Earnings per share (EPS) closed the period at $0.11 (2018: $0.09), while for the quarter, the EPS was $0.03 (2018: $0.04). The total number of shares used in the computation amounted to 2,733,360,670 units. Notably, DTL closed the trading period on February 28, 2020 at a price of $2.14.

Balance Sheet Highlights:

As at December 31, 2019, the Company’s assets totaled $5.79 billion (2018: $4.05 billion),  43% more than its value as at December 31, 2018. This was due to largely to increases in ‘Right of use assets’ and ‘Inventories’ contributed to this increase amounting to $1.04 billion (2018: nil) and $1.99 billion (2018: $1.28 billion), respectively. However, this was partially tempered by a decline in ‘Receivables’ which closed at $1.03 billion (2018: $1.17 billion).

Total Shareholders’ Equity totalled $1.18 billion (2017: $1.06 billion), which translated to a book value of $0.43 per share (2018: $0.39).

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