May 2008 Financial News

WCO Releases First Quarter Results

May 29, 2008

West Indian Tobacco Company Limited
Results for the First Quarter Ended March 31, 2008

Earnings Per Share
For the First Quarter Ended March 31, 2008, West Indian Tobacco Company Limited (WCO) reported Earnings Per Share (EPS) of 51 cents, up 5 cents or 10.9 per cent on the comparable EPS in fiscal 2007. According to the Chairman, this growth was driven primarily by improved sales performance in the domestic market.

Financial Highlights
• Net Turnover, up 10.4 per cent or $12.2 million to $129.8 million
• Cost of Sales, down 6.5 per cent or $2.3 million to $32.7 million
• Gross Profit, increased 17.5 per cent or $14.4 million from $82.7 million (Q107) to $97.1 million (Q108)
• Operating Profit rose 11.6 per cent or $6.1 million from $52.5 million to $58.6 million
• Profit After Taxation, up 12.3 per cent or $4.8 million from $38.6 million to $43.3 million.

Dividends
The Directors approved a first interim dividend of 25 cents per share which was paid on May 21, 2008 to shareholders of record at close of business on May 13, 2008.

Recommendation
WCO last closed at a price of $30.14 on the local exchange. We have forecasted an EPS of $2.00 for fiscal 2008 which at the current price translates to a price to earnings multiple of 15.1 times. At this time we recommend a HOLD on this share.


Nancy Chen
WISE Equity Research Team