Derrimon Trading Company is reporting a 12 per cent increase in its year-to-date consolidated net profits even as it doubled its finance costs to fund expansion.
Derrimon’s net profit increased to $482.19 million, which exceeded the full-year performance of $444.22 million for 2021.
Revenue for the period totalled $13.81 billion, up from $12.20 billion reported for the corresponding nine months ending September 2021.
“The improved performance is a result of our growth strategy which is being achieved through our companies and business segments, stated Derrimon Chairman and CEO Derrick Cotterell.
Caribbean Flavours and Fragrances Limited (CFF) achieved one of its highest quarterly revenue performances to date. While Woodcats International Limited has surpassed its budget and outperformed the 2021 financial year performance,” Cotterell added.
The nine months ending September 2022 also saw the first full quarter of consolidation for Arosa Limited and the second quarter with Spicy Hill Farms Limited, with both businesses contributing moderately to the quarterly outrun. Both Marnock businesses in New York improved in the third quarter after a slow start.
Derrimon Group borrowed additional capital to fund the $932 million acquisition of Arosa, complete the new flagship Select Grocers Store and extend the Delect Brand, resulting in finance costs hitting $266.92 million, up from $186.40 million in the comparative period.
Additionally, the recognition of IFRS 16 on a quarterly basis is factored in relation to finance costs.
Derrimon’s flagship Select Grocers location in May Pen, Clarendon will open its doors to customers on Wednesday, November 16, after delays associated with supply-chain challenges.
“The supply chain disruptions impacted the completion of our new Select Grocers location in Clarendon as key supplies that were expected earlier last year came in at different points of the year, disrupting the planned grand opening, stated Cotterell.
Over the last two months, Derrimon launched the new Delect branded products. It expects to see improved revenues based on this expanded portfolio.
“The feedback from our customers has been great, and the products are currently available islandwide through our various partners as well as at Select Grocers and Sampars locations,” stated Cotterell.
Total assets grew by 36 per cent to $13.99 billion compared to the $10.31 billion reported for the comparative period in 2021 due to the consolidation of assets of all new subsidiaries and continuous improvement in core assets, Derrimon said.