NOVEMBER 17, 2023
FOR IMMEDIATE RELEASE
PRESS RELEASE
DERRIMON TRADING COMPANY LIMITED REPORTS INCREASED REVENUES AND GROSS PROFITS OF $3.2BN FOR Q3 REPORTING PERIOD
(Kingston, Jamaica) Derrimon Trading Company Limited (“DTL” or “the Group”) announced its financial performance for the nine months ended September 30, 2023. The Group achieved revenues of $14.09 billion marking an increase from $13.81 billion reported for the corresponding nine (9) month period in 2022. Additionally, the Group reported gross profit of $3.20 billion which represents an increase of $179.66 million (5.95%) above the $3.02 billion reported for the comparative period last year. DTL also saw an increase in its assets, with a growing asset base of nearly $16b, representing a 12.66% increase since the previous year.
The reporting period saw increased growth in revenue and contribution from the company’s proprietary brands namely its Delect, Refresh and Gentle portfolios. Despite having reduced revenue from the Nestle portfolio, due to the new contractual channel reassignment, the impact on revenue was mitigated by accelerated growth in the retail segment of the business as well as our owned proprietary brands. The Group also experienced exceptional financial performances from its subsidiary companies namely Woodcats International Limited and Caribbean Flavours and Fragrances Limited. We expect that this trend will continue and that the positive financial returns on all of these investments will be realised.
Derrick Cotterell, Chairman and Group CEO of Derrimon Trading Company Limited, commented on the development and performance of this proprietary line of products stating, “The company has made a significant investment with the acquisition of Companies and the monetising of these subsidiaries. Ensuring that desired returns on these investments are optimised for our shareholders is paramount to the things that we are doing. Developing our proprietary line of products will be key to maintaining greater margins in our distribution business while continuing to build Derrimon’s presence across the island. We intend to grow earnings back to record levels while being cognizant of the economic and operating environment we exist in.” Cotterell continued, expressing that the Group’s ability to navigate challenges and seize opportunities underscores their dedication to delivering value to shareholders and stakeholders.
DTL’s core activity – distribution and retail operations – also showcased growth in revenue from $8.75 billion to $9.32 billion (a 6.56% increase), and increased gross profit of $1.89 billion, which represents a $103.23 million (5.79%) increase above the $1.78 billion reported for the corresponding period last year. The Jamaican-owned conglomerate’s operating profit for the reporting period was $954.76 million, an increase of $162.61 million (20.53%).
The Group’s performance continues to demonstrate resilience in the face of change, challenging market conditions and their associated cost increases, as well as the projected success of their current growth strategy. “Our strategy and focus will continue to be the growing of our different business lines in the distribution and retail spaces as well as manufacturing and processing,” Cotterell shared.
He continued by sharing that the improved performance being reported is the result of the Group’s growth strategy being achieved throughout their various business segments. “The Company has devised and will be implementing new strategies to offset the cost of some market-related cost increases in order to cushion some of the impact on profitability. We are encouraged and excited about our future prospects, and as we enter our 25th Anniversary Celebration in 2024, we look forward to working to bring even greater value to all parties involved in and impacted by our day-to-day operations,” Cotterell explained.
