Congregants at Fellowship Tabernacle in Kingston who view a humble deacon in service each week, may not know that the man who on week days wears the hat of Derrimon’s founder and Chief Executive Office, Derrick Cotterell –has on paper – stocks on his account valued at some US$4 million.

Fifty year old Cotterell who has spent to decades running the show in his own businesses tries to give yeoman service at home, at church and in his company. He is proud of all three.

He first ran a photography business at St. George’s high school in Kingston but his first real successes were Derrimons gas station and then Derrimon’s trading. Today He also has lots of advice to dispense both to aspiring entrepreneurs and those already astride their own operations.

“Over –reliance on persons and not enough on systems is one pitfall. You need good people but you also need good systems to ensure the assets of the business are fully protected.”

At the same time, he asserts that the success of wholesale and retail company Derrimon – the company which brought him more national attention – is due to the quality of staff.

Cotterell says the devil is in the details and he has had to keep very focussed on small matters, even while trying to achieve goals sought in the big picture.

He praises the Junior Market of the Jamaica Stock Exchange which assisted in raising much needed capital for Derrimon and also introduced corporate governance structures which have helped to keep the devil away.

“The stock exchange helps in sustaining the business,” he told Businessuite.

Derrimon stock traded on March 22, 2016 at J$4.80 each, bringing total market capitalisation to $1,312,013,122.00

At the end of the last financial year, for the year ended December 31, 2015, the wholesaler posted revenue of $6.29 billion — an increase of 12 per cent or $684.401 over 2014’s $5.6 billion in sales.

Earnings grew 71 per cent to $88.13 million compared to net profit of $51.6 million in 2014. Meanwhile, earnings per share grew to 32 cents in 2015, compared to 19 cents reported in 2014.

The CEO is paying attention, something he said he learnt to do in the business world of Grace Kennedy where he cut his teeth on strategy.

With over 20 years’ experience in the fields of sales, marketing and general management during an s extensive career at GraceKennedy Limited, the CEO offers kudos to the manufacturing and distributing giant lessons learnt while holding managerial positions such as Area Manager, Divisional Manger, and Business Unit Manager.

A graduate of the University of the West Indies with a Bachelor of Science Degree in Management Studies and a Master of Business Administration from Florida International University, the manager said when he eventually started his own business from a single container, he chose foods because that was his background.

The company has grown since its December 2013 IPO in which 7 million shares were offered $2.05 each. The J$150.34 million that the company aimed to raise from the offer, was wanted to expand its Sampars Cash & Carry business, retire a portion of the company’s debt, and finance its working capital.

Back then Cotterell said Derrimon would be looking to establish other wholesale and retail outlets across the island. The CEO has kept true to the promise.

One key to growth has been diversification and forward integration, Cotterel explains. with the newer retail arm of Derrimon complementing the wholesale core.

Derrimon acquired the assets of My Neighbourhood Supermarket and rebranded it Sampars Old Harbour since listing. It also acquired the assets of Northern Cash ‘N’Carry Supermarket and rebranded it Sampars St Ann’s Bay.

The Sampars chain itself which was acquired in 2009 has now been expanded to six outlets island wide.

In August 2014, Derrimon acquired 49 per cent of Caribbean Flavours and Fragrances Ltd (CFFL) — another company listed on the Junior Market of the Jamaica Stock Exchange.

Similarly, diversification has been key to growth for CCFL which keeps adding new products even as it adds new markets.

CCFL entered the Caribbean’s largest market — the Dominican Republic — at year end 2015. The new markets widen a client base spread in the US, Canada, Trinidad and Tobago, Grenada, Barbados, St Kitts, Guyana and Jamaica.

The company has also developed new products . CFF makes flavours for the food, beverage, baking, confectionery and pharmaceutical industries, as well as water-soluble food colours; and additionally manufactures and supplies fragrances for household cleaning, cosmetics, deodorants, soaps, haircare and bath products.
The company sources essential oils and other raw materials both locally and abroad.

The proof of the pudding is in the eating, and for the last reporting period – three months to December 31,2015 the financial results told their own story.

For the period, revenue was $104.98 million, up 31 per cent on the similar quarter in 2014. Sales of flavours, the company said, increased 27. 5 per cent while fragrances saw a 33.6 per cent increase.

Overall revenue from exports was up 61.3 per cent, year over year. Net profit came out at $17.27 million, up 59.7 per cent on the $10.81 million earned at December 2014.

Cotterrel has been at the helm of Derrimon since 2009 when he was installed chairman. While CCFL has its own board, he keeps a keen eye on the iperation, notign that the seeds planted today are important for future results desired..

Both companies have benefited from his drive for diversification and innovation. Cotterell states that he expects Sampars online shopping portal to attract significant buy-in from Jamaicans abroad who wish to shop and have food and household products delivered right to the door of their relatives in Jamaica. They can also have Jamaican brands delivered to their door abroad.

Both Derrimon and CCFL have also benefited from the Junior markets tax breaks which should last up to ten years, having beaten the December 2014 change to five years.

CCFL which issued its IPO in September 2013, seeking to raise J$50.6 million from subscription for up to 22.48 million at at J$2.25 per share – now trades at J$7.40 each with market capitalisation on March 22 of $722,057,865.00.

Derrimon gas has been shuttered in a bid to focus more on the wholesale and retail of foods, Cotterell said.

The CEO is generous with his advice and counsels business owners not to be churlish when they receive criticism.

“Listen to advice and take criticism and understand it is coming because people take the time to do so. If they don’t, you wont have the opportunity to improve.” One criticism he received in his early days he said, was the need to pay attention to details.

His last word were, “don’t think transactions. Think relationships. It works better than looking to make money on a particular transaction. Its relationships that tend to stand the test of time.” BM