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Financial News

Apr 2015 Financial News

Profit before tax of $655.1m for Witco

Apr 08, 2015

Although the global tobacco industry is facing challenges, West Indian Tobacco (Witco) has reported a successful financial performance, earning profit before tax of $655.1 million for 2014.

The company’s annual report, which was released to the T&T Stock Exchange yesterday, shows a 17.8 per cent increase in profits over 2013 and profit for the year of $489.2 million.

“This continued solid performance resulted partially from improved expense management, driven by factory efficiencies and a consumer centric focus, with continued innovation in the premium segment of the market,” Witco chairman Anthony E Phillip said in his report to shareholders.

He said challenges facing the global industry included trafficking of tobacco products, with up to 12 per cent of global volume being traded on the black market. 

“Locally, there was some natural market contraction, coupled with an increased presence of low-priced brands. Regulation of the industry also continues to increase,” Phillip said.

“The company recognises the need for sensible and balanced regulations which take into account the rights of consumers, given the risks associated with tobacco. The unintended consequences of flawed regulation must be avoided.

“Measures such as retail display bans and high excise could result in consumers switching to cheaper, illegally trafficked products. Sound regulation is important in the tobacco industry and, where it is developed with the involvement of key stakeholders, could promote an orderly marketplace that serves the interests of both consumers and government.”

Witco is a member of the British American Tobacco Group and is the leading manufacturer of cigarettes in T&T and the Caribbean, servicing 22 Caricom markets.

 

Source:
Trinidad Guardian
Wednesday April 8, 2015

http://www.guardian.co.tt/business/2015-04-08/profit-tax-6551m-witco