FOLLOWING a drop in sales during the second-quarter lockdown in Trinidad and Tobago plus its external markets, the West Indian Tobacco Company (WITCO) which manufactures and exports cigarettes managed to claw its way back as its revenue grew by two per cent to TT $237.9 million ($5.08 billion) and profit attributable to shareholders increased by three per cent to TT $108.1 million.

As stay-at-home measures and enhanced restrictions continue to inhibit daily activities in the two-island republic, WITCO has managed to adapt its route to market processes to reach their final consumers in the domestic market space. This has benefited the company well as its domestic sales fell by less than one per cent to TT $207 million while its gross profit only declined by three per cent to TT $171 million. Lower distribution expenses and administration costs also resulted in a two per cent jump in operating profit to TT $154.5 million. Notwithstanding these improvements in the third quarter, WITCO’s net profit for the overall six months is down by four per cent to TT $301.7 million ($6.4 billion).

A major improvement for the company was in its export market to other Caribbean Community (Caricom) countries such as Jamaica, Suriname and Guyana — which saw revenue spike by 25 per cent in the quarter to TT $30.9 million ($658.9 million). Gross profit had a massive upsurge as it improved by 195 per cent to TT $6.6 million. Although revenues for the nine months are down by one per cent, the current trajectory of the results indicates that the company might surpass its 2018 results for the segment. This is in keeping with the general recovery in various Caricom countries which have opened their borders while Trinidad’s borders remain closed.

Total asset value for the company is 10 per cent higher at TT$754.3 million, which is mainly due to a 20 per cent increase in cash to TT $360.4 million that was supported by the absence of a first-quarter dividend. This has also translated to higher shareholder equity which is 20 per cent higher at TT $539.8 million while liabilities declined by eight per cent to TT$$214.5 million. Through these improvements and relative stability, the board declared a dividend of TT $0.39 which translates to TT $98.6 million ($2.1 billion) payable to shareholders on November 23.