Witco profits before tax down by $36.1 million

THE West Indian Tobacco Co Ltd's (Witco's) profit before tax fell by $36.1 million or 25 per cent in the first half of 2024.

In its unaudited interim results for the six months ended June 30, published in a daily newspaper on July 27, the company said it recorded a profit before tax of $108.2 million.

This it said represents a decrease of $36.1 million or 25 per cent below the corresponding period in 2023.

Profit for the period was $79.7 million, reflecting a decrease of 22 per cent or $22.5 million below 2023.

In the chairman's review on July 24, Ingrid Lashley said, "In reviewing the second quarter performance of 2024, it is noted that our revenue reflected a one per cent decline compared to the same period in 2023. The primary contributor was a 25 per cent or $9.3 million decline in export revenue, partially offset by an improvement of six per cent or $8 million in the domestic market. As a result, the year-to-date performance has been significantly influenced by the carry-over effect of our first quarter performance, which we were unable to fully offset by the close of the financial half-year."

She added, "While we acknowledge the hurdles faced during the quarter we are actively reassessing our strategies to address these issues and are focused on implementing the necessary adjustments to improve our performance going forward.

"In the previous quarter we launched our globally renowned vape brand, VUSE, and ventured into the vapour category. This aligns with our strategic goal of providing adult consumers with less harmful alternatives to smoking."

"This product range was developed in direct response to customer, and its performance to date has been promising," Lashley said.

The directors have recommended an interim dividend of 20 cents per ordinary share, which will be paid on August 26.

On July 23, Witco said it had completed negotiations with the Seamen and Waterfront Workers' Trade Union (SWWTU) on a collective bargaining agreement for the period January 2026-December 2028, which includes a seven per cent increase in wages and salaries.

A release from Witco on July 23 said the increase would be spread over a three-year period.

"Witco has a legacy of providing outstanding employee benefits and enabling a performance-driven and dynamic organisation.

"The signing of this agreement underscores the importance of our employees and the continued resilience of our business. Together, we are stronger for the future of our business, our industry and our country," said Luke Gittens, head of human resources.