May 2012 Financial News

Lighting up heavier on the pocket by 4%

May 22, 2012

The cost of smoking just got higher as the West Indian Tobacco Company Ltd yesterday announced a four per cent increase in product prices.

This is the company’s second price hike in less than a year, when it raised prices in the second half of last year by about five per cent.

WITCO’s managing director, Jean-Pierre du Coudray, told the Express in a telephone interview the company had tried for as long as possible to keep costs down, but could no longer continue to absorb rising raw material prices.

Raw material costs had been increased 14 per cent over the last year, he said.
The company only raised prices on products that were most severely affected, he added.

These include a $1 increase on full packs (20s) for its duMaurier, Broadway and Dunhill brands.

There was a $2 increase in the more high-end Dunhill Fine Cut and Vogue brands.
Half-pack prices remain the same.

WITCO earned a before tax profit of $402 million last year, 8.1 per cent more than 2010.

Thirty-eight per cent of the company’s income goes towards government taxes.
The company’s stock on the Trinidad and Tobago Stock Exchange, recorded a $0.04 rise yesterday, closing at $68.64.


Source:
Trinidad Express
Tuesday May 22, 2012

http://www.trinidadexpress.com/business/Lighting-up-heavier-on-the-pocket-by-4-152436845.html