Witco makes $265m but profits down $12m

Despite recording $265 million profit before tax, West Indian Tobacco Co Ltd (Witco) said this amounted to a $12 million decline, or a -4.4 per cent decrease, for the first six months of 2021.

In its unaudited interim statements, chairman Anthony Phillip said the profit for the period was therefore $187.4 million, which reflected a $6.1 million or 3.2 per cent decrease when compared to the same period last year. Last year’s profit was $194 million.

“These results continue to reflect the impact of covid19 on the business. The company’s factory operations were closed for the month of May and this negatively impacted contract manufacture and exports to Caricom markets.

“Additionally, manufacturing and distribution of products in the domestic market were severely disrupted as a result of curfew and state of emergency measures enforced by the government during the period, as they sought to manage the most severe effects of the pandemic on the population to date.”

Phillip said net turnover was also reduced by $10.6 million, or -2.5 per cent, when compared to the same period last year owing to a reduction in sales volume.

He said the company was trying to manage the ongoing covid19 risks and has implemented new measures to ensure the health and safety of employees inclusive of daily antigen testing onsite and employees also participated in government’s “vaccinate to operate” initiative.

“The resilience and commitment of our management and employees must be commended. Covid19 and the challenging economic environment continue to characterise the volatility of the manufacturing sector and require continuous assessment and innovation as we strive to meet stakeholders’ expectations.”

Phillip also announced that the board of directors approved an interim dividend of $0.39 per ordinary share to be paid on August 30 to shareholders on record at close of business on August 11.

The register of shareholders will be closed on August 12 and 13 for the processing of transfers.