DERRIMON Trading Limited (DTL) is pushing to have its Food Savers NY supermarket and its Good Food for Less wholesale businesses in Brooklyn, New York, reopened by October.

The entities, which are located on the same building, have remained closed since the roof collapsed on March 22 this year. Rains since then caused delays in repairs, negatively affecting reopening efforts.

“Although the landlord and contractors have provided several deadlines, we now expect the building to be ready by the end of August 2024. Additional work is [however] required to comply with the updated business model, and we are aiming to reopen by October 15, 2024,” a note signed by the company’s Chairman and CEO Derrick Cotterell, attached to its latest financial filings, stated.

Acquired three-and-a-half years ago for between US$8.9 million to US$9.1 million, the entities have allowed Derrimon to tap into the New York market, exposing its business to increased sales from a market heavily populated by the Caribbean and African Diaspora.

The supermarket and retail outlets, however, have been contributing nothing to Derrimon since their closure, which is expected to be extended for another two months.

“As a result, the third quarter will continue to reflect the absence of revenue from these businesses, though many of the associated expenses remain. Repairs are ongoing, and the company is assessing potential insurance claims for this disruption,” management further said in the interim report to shareholders.

At the end of the second quarter ended June, revenues fell 7 per cent to total $4.25 billion — down from $4.57 billion in the previous year. Profit fell by more than a half to $62.6 million at the end of the three month period.

For the longer six months period, January to June, Derrimon recorded $7.81 billion in revenues, down from the $9.5 billion the company earned in the comparative six months a year earlier. At the same time, its half-year profit dipped to $120.8 million— almost 40 per cent less than that of the corresponding period last year.

A breakdown of the group’s wholesale and retail division, under which it operates eight supermarkets including its New York-based grocers, saw revenues growing to $2.24 billion, up from $1.87 billion last year due mainly to improved performances from its locally based Sampars retail outlets and Select Grocers supermarkets. Derrimon operates six Sampars Cash and Carry as well as Sampars Outlet, and two Select Grocers supermarkets in Jamaica. Its revenue growth also benefited from a new IT platform which helped it to enhance customer experience and provided reliable information on purchasing decisions.

The distribution segment, on the other hand, saw a 7.9 per cent revenue increase to $1.26 billion, rising from $1.17 billion. The growth was driven by the development of proprietary brands, including Delect, Refresh, Gentle, and Spicy Hill, along with a renewed focus on core distribution products.

“These brands are gaining traction and showing promising results,” the company noted.

The directors, reporting on Derrimon’s manufacturing operations, said revenues from the segment declined by over 51 per cent, from $1.54 billion to $744.35 million during the reporting period.

“Caribbean Flavours and Fragrances Limited (CFF) and Woodcats International Limited reported revenue growth due to increased volumes in Jamaica. Spicy Hill Farms also saw improved sales during the quarter. Unfortunately, Arosa experienced a decline in sales due to major equipment failures, which hindered our ability to fulfil orders, along with a slight contraction in the tourism segment,” a round-up of the performance for the other subsidiaries said.

Derrimon owns 100 per cent of Woodcats International, Spicy Hill Limited, and Arosa Limited, but only owns 65.02 per cent of Caribbean Flavours and Fragrances.

DTL’s total assets, which at the end of June totalled $14.29 billion, represents a 9.16 per cent increase over the prior year.