Derrick Cotterell Chairman And Chief Executive Officer For Derrimon Trading Company Limited Has Released The Following Consolidated Statements Of Report To Stockholders Nine (9) Months Ended September 30, 2023.
The nine (9) months consolidated results for Derrimon Trading Company Limited saw revenue of $14.09 billion which is $285.53 million more than the $13.81 billion reported for the corresponding nine (9) months period in 2022.
The improved performance being reported is the result of our growth strategy being achieved throughout our companies and business segments. Both subsidiary companies Caribbean Flavours and Fragrances Limited (CFF) and Woodcats International Limited achieved record quarterly revenue performance and continue to grow into new market segments.
Arosa, Spicy Hill, and Marnock all contributed positively to the nine months revenue albeit below our budget for the period.
We continue to see growth in our new Select Grocers in Clarendon and remain optimistic that the programmes that we are introducing will yield the desired result.
The distribution business continues to see growth in our proprietary brand portfolio and is rapidly gaining market acceptance.
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. Our gross margins improved from 21.86% to 22.69% due to a mix of our purchasing strategies as well as the broadening of our own proprietary brands during the period.
Consolidated operating expenses for the nine (9) months was $2.42 billion representing an increase of $126.98 million (5.53%) over the $2.30 billion reported for the comparative period last year. The increased expenses reflect the new Select Grocers, and the full integration of increased cost in all the business.
During the period, our general insurance cost for both the local and international business increased by just over 45% and we have seen similar cost in the areas of security, as well as the carrying cost impact from the restructuring of our distribution business. Additionally, we experienced higher depreciation charges as well as higher lease cost related to IFRS 16.
The Group’s operating profit for the reporting period was $954.76 million, an increase of $162.61 million (20.53%). However, our finance costs increased by $380.90 million (142.70%) to $647.82 million as the Group refinanced some of its debt. Additionally, finance costs from our prior acquisitions are now being fully reflected during this period. In addition, the accounting for leases as per IFRS16 negatively impact finance cost given that interest on lease liabilities and rights of use are captured. Higher levels of depreciation also occurred due to increased assets associated with the new Select Grocers store in May Pen.
The Group profit before tax for this reporting period was $306.95 million, a decrease of $218.29 million (41.56%) from the $525.23 million reported for the comparative period and was negatively impacted by increases in administrative, finance and depreciation costs. The Group has devised and has implemented new strategies in order to offset some of these increases and cushion some of the impact on profitability.
Consolidated net profit decreased by $207.47 million (43.03%) to $274.72 million and Net profit attributable to shareholders declined by 48.49% to $237.87 million with the Group recording an earnings per share of $0.052 relative to the $0.102.
The Group total assets grew by 12.66% to $15.77 billion compared to the $13.99 billion reported for similar period in 2022. Total liabilities increased from $7.75 billion to $9.12 billion while equity attributable to shareholders moved from $6.01 billion to $6.37 billion.
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