Derrimon Trading Company Limited (DTL) has advised that at a meeting to be held on August 31, 2020, its board will consider recommending to shareholders at the Annual General Meeting the raising additional equity through an additional public offering of ordinary shares.
The amount of funding being targeted and its purpose was not disclosed in the Jamaica Stock Exchange notice issued on August 25, 2020.
Derrimon Trading Company Limited, which distributes food products and operates supermarkets and wholesale outlets, has a market capitalisation of JM$7 billion as at August 24 with 2,733,360,670 shares in issue.
Stock price closed at JM$2.71 per unit on Monday, August 24, appreciating nearly six per cent year to date.
For the six months ended June 30, 2020, Derrimon Trading Company Limited reported revenue of JM$6.30 billion which is JM$16.11 million more than the JM$6.29 billion reported for the corresponding six-month period in 2019.
Directors said the impact of the slowdown in economic activities and demand by consumers and manufacturers as a result of the coronavirus (COVID-19) pandemic were the main reasons for the negligible growth experienced at the group level.
“Earlier in the year, Chairman and CEO Derrick Cotterell reported a five-fold increase in online sales for the grocery segment.”
However, the company benefitted from growth of its retail segment and Caribbean Flavours and Fragrances Limited, in which it has a controlling stake.
Subsidiary Woodcats International saw a reduction in business during the reporting period, but the company’s management said they expect to see a rebound based on the reopening of many segments of the manufacturing sector in July 2020.
The group’s net profit after tax was JM$183.89 million, which was an increase of JM$16.26 million or 9.70 per cent above the JM$167.63 million previously reported.
Consolidated total assets, less current liabilities, was JM$4.18 billion compared to the JM$2.34 billion reported for corresponding period in 2019.
Earlier in the year, Chairman and CEO Derrick Cotterell reported a five-fold increase in online sales for the grocery segment.
Derrimon acquired Sampars Cash & Carry chain in 2009 and currently operates six retail outlets along with a distribution hub located at Marcus Garvey Drive in Kingston.
The group also operates two supermarkets — one in Manor Park and the other in Cross Roads — under the Select Grocers brand.