Witco reveals 28% profit decline

THE West Indian Tobacco Company (Witco) has released its unaudited interim results for the nine months ending September 30, revealing a profit before tax of $152.9 million – a decline of $60.2 million, or 28.2 per cent – compared to the same period in 2023.

This decrease, Witco chairman Ingrid Lashley suggested in her review, was caused by challenges associated with shifting consumer preferences.

“In light of this,” Lashley wrote, “our priority is ensuring our value proposition continues to appeal to consumers across the portfolio.”

Net profit for the period stood at $108.7 million, down by $40.8 million or 27.3 per cent year-over-year.

However, Witco saw promising gains in its export revenue, which rose by 10.5 per cent in the third quarter of 2024.

Lashley expressed cautious optimism, saying, “Despite improvements in our export revenues in Q3 2024 of $3.1 million…the revenue decline is 21 per cent compared to the same period in 2023 owing to decline in the domestic revenue primarily due to changes in consumer preference and a focus on lower-priced offers.”

Lashley highlighted the positive performance of vaping brand, Vuse, launched in April, which saw an 18 per cent growth quarter-over-quarter.

“The performance to date shows positive results…which demonstrates the acceptance of this product and its potential for sustainability in portfolio growth and contribution to positive performance.”

She said Witco, in alignment with its diversification strategy, is positioning itself as a multi-category business to reduce dependence on traditional tobacco revenue streams.

Lashley added that this approach is intended to “enhance (Witco's) ability to adapt to changing consumer preferences,” securing long-term resilience and competitiveness.

Witco’s directors also declared a second interim dividend of 15 cents per ordinary share, payable on November 27, for shareholders on record by November 8. The shareholders register will be closed on November 11-12 for transfer processing.

Lashley stressed Witco's commitment to shareholder value, saying that strong cash flows allow for “a dividend payout that acknowledges the contributions to our shareholders…reflecting our confidence in the long-term viability of our business.”