Witco reports $19.7m decline in profits

It is a small margin compared to several other companies which tried to stay afloat during the economic onslaught connected to covid19, but the West Indian Tobacco Company (Witco) recorded a 3.2 per cent, or $19.7 million, decline in profit before tax which amounted to $588.1 million in 2020.

Witco chairman Anthony Phillip made the disclosure in his review of the audited financial statements for the year ending December 31, 2020. The report said profit after tax was $410 million, an $8.2 million or two per cent decrease.

“The results reflect the impact of covid19 on the business amidst a weak economic environment coupled with an increase in excise tax in 2020,” Phillip said in his review.

He said aside from the new challenges, the competition from a growing list of suspected illicit cigarettes with low-price offerings continues to challenge the industry. On Wednesday, Trade and Industry Minister Paula Gopee-Scoon said Witco gave the ministry an estimate of $30 million lost to tax evasion from the illicit tobacco trade last year.

In his report, Phillip said the company was able to pivot and adapt to the new normal, to minimise the effects of the pandemic. Route-to-market processes were amended to deal with the new procedures and ensure that its product product was available to all customers. Key business processes were also adjusted to cut costs and that led to the company ensuring all its employees were retained.

“We continue to ensure that our brand portfolio remains relevant and dynamic. We are confident in our resilience to weather this storm as we go forward.”