DERRIMON Trading Company Limited (DTL or the group) announced its financial performance for the nine months ended September 30, revealing revenues of $14.09 billion and marking an increase from the $13.81 billion reported for the corresponding nine-month period in 2022. Moreover, the group reported gross profit of $3.20 billion, signifying a rise of $179.66 million (5.95 per cent) above the $3.02 billion reported for the comparative period last year.
DTL also witnessed a growth in its assets, with an expanding asset base of nearly $16 billion, marking a 12.66 per cent uptick from the previous year.
Heightened growth in revenue and contributions from the company's proprietary brands — namely its Delect, Refresh, and Gentle portfolios — were observed during the reporting period.
"We have been concentrating on achieving better returns on our investments," commented Derrick Cotterell, chairman and group CEO of DTL. "We are selling more of our proprietary brands, and uplifting awareness and acceptance through trade and consumer engagements. Consumers have been responding positively and view our brands as high-quality and reasonably priced."
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 its own proprietary brands.
Cotterell underscored this point saying, "as a nimble organisation we have a diverse portfolio which allows us to pivot and focus on other areas of our product offerings to achieve results".
The group also experienced exceptional financial performances from its subsidiary companies, namely Woodcats International Limited and Caribbean Flavours and Fragrances Limited. It expects this trend to continue with positive financial returns on all of these investments.
"The company has made a significant investment with the acquisition of companies and the monetising of these subsidiaries," Cotterell stated. "Over the years we put in resources and investments to achieve greater capacities and efficiencies [and] we are now reaping the results of these initiatives. 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," he added in regard to the group's ability to navigate challenges and seize opportunities. "We intend to grow earnings back to record levels while being cognisant of the economic and operating environment we exist in."
The overall equities market has faced challenges in 2023 with reduced trading volumes and values. DTL's stock price closed the quarter at $2.02, six per cent lower than the beginning of the year but nevertheless commendable considering market conditions. The market capitalisation stood at $9.16 billion. Despite market fluctuations the company's resilience is evident, and the Junior Market Index marginally declined while the Manufacturing & Distribution Index improved by 3.37 per cent in the first nine months.
"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. "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 do not see the economic challenges as insurmountable," he insisted. "We are always exploring new opportunities for our brands. Looking overseas, we have only begun to scratch the surface. Overall, we see inroads into other markets while organically growing our brands locally. 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."