DESPITE having to navigate the hostile operating environment, Derrimon Trading Limited (DTL) said it continues to deliver consistent growth as it also increases value for shareholders.
The food distribution company unscathed by the negative economic environment birthed by the challenges of the novel coronavirus pandemic or from continued supply chain disruptions, for its financial year ended last December increased revenues to $17.7 billion up from $12.7 billion in 2020. Profits for the company also grew by 44 per cent to total $448 million at the end of the 12 months.
The company, in accrediting its success to the build out of a diversified portfolio, said that a number of activities undertaken during the financial year also significantly aided its growth. These included the successful completion of an additional public offering (APO) last year February from which the company raised over $3.5 billion to fortify its capital base, service debt and pursue expansions.
During the year the company transitioned into the US market after it purchased Brooklyn-based supermarkets Food Savers New York and Good Food For Less. Last November the company also expanded its portfolio when it acquired Spicy Hill Farms, a manufacturer of authentic Jamaican products including the popular ram goat soup or “mannish water” product.
“The growth in revenue can be attributed to the overall strategy of building a diversified group of companies [and] ensuring that the many challenges that accompanied the market decisions associated with the COVID-19 pandemic were cushioned, based on the diversity of our revenue streams,” said Derrick Cotterell, chairman and chief executive officer (CEO) of DTL.
The food distribution company, which operates a network of businesses through its Sampars Cash and Carry and Select Grocer stores, also has controlling interest in Caribbean Flavours & Fragrances and pallet maker, Woodcats International.
The company, highlighting some plans for growth this year, said that the build out of its new Select Grocers store located at Millennium Mall in Mineral Heights, Clarendon, which was scheduled for opening by June and touted to become the largest supermarket in central Jamaica along with the implementation of a new technology platform, Microsoft Business Central, were both poised to bring added growth for its business.
“As our operating environment continues to be influenced by many unforeseeable market changes and given that the impact of the pandemic will be present for the foreseeable future, we will continue as a team to diversify, build on our brands, manage our costs and implement new and innovative strategies that will continue to generate growth and success for the group and our shareholders,” Cotterell stated.
Ian Kelly, group finance director at Derrimon Trading, added in a brief interview that the company will also be focusing on exports with its Spicy Hill Farms products.
“We have now put in a new factory which allows us to produce four times what the old factory at Spicy Farms produced and our focus is on the export market given that we have our distributor, Food Savers, in New York,” Kelly said.
Kelly also indicated that Derrimon is in active discussions for another acquisition at the moment, but declined to go further due to the sensitive nature of the discussions at the moment.