Witco records $379m in profits

Witco has posted a profit for 2021 of $379 million, a dip of $30 million compared to the year before.

In the company’s annual report, chairman Anthony Phillip said although covid19 continued to affect its performance it was still able to earn $537.2 million in profit-before-tax.

The report said revenue for 2021 stood at $852.3 million, a reduction of $47.7 million as compared to 2020.

There was a continued decline in sales in all brands except for Broadway cigarettes. The brand continued an upward trajectory showing resilience through the pandemic, the report said. It noted that despite the state of emergency and a continued economic downturn, the brand achieved a five per cent growth as compared to 2020, with its migration in brand from Broadway to Lucky Strike White.

Phillip said factors having a direct impact on the business included market restrictions, closure of manufacturing operations, supply chain disruptions and border closures. The factory closed for the month of May, which affected its exports to Jamaica, Guyana and other Caribbean countries.

“The prevailing environment required implementation of contingency plans to find ways in which the company could enhance efficiencies through prudent financial and operational management.”

The report said brands like Rothman’s cigarettes – the rebranded Mt D’Or – are expected to among the products to encourage growth, and they continue to be its market leaders. Premium brands were the most affected, as places of entertainment were closed for most of the year. But the brands new “half-pack” format continues to grow month-to-month.

Witco expressed confidence that with the ease of covid19 restrictions there will be increases in sales and market shares. The company recommissioned its upgrade factory in Champs Fleurs on March 11.