DERRIMON Trading Company Limited (DTL) has posted a net loss of $616 million for its financial year ended December 31, 2024, marking a reversal from the $182-million profit recorded in the prior year. The company, a key player in Jamaica’s wholesale and distribution sector, saw revenue plummet 18.8 per cent to $15.2 billion, reflecting weaker sales across its retail and distribution segments.
The loss was compounded by a sharp increase in finance costs, which surged by 30 per cent to $766 million, as well as a $462-million impairment charge on financial assets. Derrimon, which operates the Sampars Cash ‘N’ Carry chain, Select Grocers, and Marnock Retail in the United States, has been expanding aggressively in recent years, but its growing debt burden appears to be weighing heavily on its financial performance.
Despite the setback, total assets increased to $17.7 billion, reflecting ongoing investment in its businesses. However, total liabilities also climbed to $11.4 billion, underscoring the company’s heavy reliance on debt to fund its operations. Derrimon, which has pursued a diversification strategy through acquisitions including Spicy Hill Farms, Arosa Limited, and Woodcats International, now faces the challenge of balancing expansion with financial stability.
Derrimon’s financial difficulties come as the company repositions itself to strengthen margins and improve cash flow. While Derrimon’s losses were more severe, its subsidiary Caribbean Flavours and Fragrances Limited (CFF) also saw a decline in performance. The flavour and fragrance manufacturer posted a net profit of $83.8 million — down 37 per cent from $132.8 million in 2023 — as revenue dipped to $884.7 million from $900.8 million. The decline was driven by rising costs and weaker demand in some segments.
CFF, which produces flavours for beverages, baked goods, and confectionery products, along with fragrances for household cleaning supplies, has historically been a steady performer within the Derrimon group. However, the 2024 results suggest that the company is feeling the effects of higher operating costs and shifting consumer demand.
One of the biggest challenges came from a sharp increase in operating and administrative expenses, which rose 16 per cent to $208.5 million. Higher input costs, logistics challenges, and increased selling and distribution expenses all put pressure on CFF’s profitability. While the company remains in the black, the margin squeeze highlights a more difficult operating environment than in previous years.
Despite the decline, CFF has continued to invest in product development, introducing new emulsifiers and enzymes for the baking industry. These ingredients are designed to enhance texture, shelf life, and quality, positioning the company for growth in value-added food production.
“Despite these challenges we remained laser-focused on closing new business deals, expanding our product portfolio, and deepening our sales strategies in both local and export markets. These efforts were executed successfully, laying the foundation for future revenue,” chairman of the company Howell Mitchell said in the preamble to the company’s results.
“We continue to refine our product offerings and enhance our research and development capabilities to better serve evolving market needs. We expect these efforts to drive greater market acceptance in both domestic and international markets over the near to medium term,” he continued.
— Karena Bennett
