West Indian Tobacco Company (Witco), yesterday reported after tax profit of $108.65 million for the nine months ended September 30, 2024, 27.3 per cent less than the $149.45 million the Champs Fleurs-based tobacco producer declared for the same period in 2023.
Witco's revenue slumped by 18.3 per cent to $382.86 million for period January 1 to September 30, 2024, a decline of 18.3 per cent.
In her chair's review, Ingrid Lashley, said despite improvements in the company's export revenues in the third quarter of $3.1 million or 10.5 per cent, the decline in revenue decline compared to the same period in 2023 was due to lower domestic revenue "primarily due to changes in consumer preference and a focus on lower-priced offers."
She said, as a result, the company's priority is to ensure its value proposition continues to appeal to consumers across the portfolio.
Lashley said since the launch of its vaping brand, VUSE, the performance to date shows positive results of 18 per cent growth quarter on quarter which demonstrates the acceptance of this product and its potential for sustainability in portfolio growth and contribution to positive performance.
"Establishing ourselves as a multi-category business aligns with our strategic goal of ensuring business resilience. By diversifying our product offerings and tapping into emerging markets, we are positioning the company for long-term competitiveness, reducing reliance on traditional revenue streams and enhancing our ability to adapt to changing consumer preferences," the Witco chair said. She said the company's healthy cashflows will support a dividend payout that acknowledges the contributions to its shareholders, adding that it is important to maintain the commitment to the company's shareholders by enhancing shareholder value.
"This reflects our confidence in the long-term viability of our business and our ongoing efforts to address current challenges," according to Lashley.