Derrimon Trading Company is reporting a second-quarter net loss of $273 million, reversing a profit of $181 million recorded in the corresponding period last year, as the company battled supply chain disruptions, delays in working capital and weaker consumer demand.
In unaudited financial results for the three months ended June 30, the group reported revenue of $2.7 billion, down more than 35 per cent from a year earlier. For the first six months of the year, revenue fell 33 per cent to $5.7 billion.
Management says inventory shortages linked to supply chain challenges affected sales during the quarter, but expects inventory availability to improve in the second half of the year.
The company says it has been restructuring operations and tightening cost controls to improve efficiency and profitability. It also disclosed that some of its credit facilities were unavailable during the first half of the year because of delays in financial reporting.
Looking ahead, Derrimon says it is continuing efforts to reduce debt, optimise operations and strengthen governance, while working to recover from challenges associated with its enterprise resource planning system.
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