Contraband cigarettes cutting into WITCO profits
Monday, October 30 2017 @ 12:49 PM AST
Contributed by: michaelariston
Photo by Neil Hester, flickr
VERBATIM STATEMENT FROM WITCO CHAIRMAN:
Given the prevailing economic conditions, the ongoing recession together with increased Excise and Corporation Tax, the business environment continues to be challenging. This has resulted in significant changes in consumption patterns adversely affecting revenue.
The Company continues to engage with relevant authorities and stakeholders on the issue of the increased presence of suspected illicit products in the Market which has negatively affected our business.
Against this backdrop, West Indian Tobacco has recorded Profit Before Taxation of $398.2 million and Total Comprehensive Income for the Period of $275.7 million for the nine months ended 30 September 2017.
The Company continues to proactively respond to the evolving market conditions with ongoing reviews of its Brand Portfolio, Trade Marketing, and Distribution strategies, as well as careful cost management across its operation.
The Board has accordingly approved the payment of a third interim dividend of $1.14 per ordinary share payable on 24 November 2017 to shareholders of record at close of business on 7 November 2017. The Register of Shareholders will be closed on 8 and 9 November 2017 for the processing of transfers.
October 25, 2017
SOURCE: WITCO Q3 2017 results