Trinidad’s West Indian Tobacco (Witco) raised prices on cigarettes approximately 15 percent, effective October. The increase should push revenues to over $1.3 billion dollars in 2015, from TT$1.185 billion in 2013.
An increase of that level on top of one in 2013 will most likely reduce the volume of sales on the Trinidad market, where the increase was effected. The price adjustment should help boost next year’s profit and by our calculation that should hit $700 million after tax or around $6.80 per share. That would put the PE ratio of the stocks at just over 17 times next year’s earnings and should help move the stock back into the $20 region which should be helped with an expected increase in dividends in the region of the EPS.
Witco’s profit jumped 23.5 percent in the June quarter, this year to hit $127 million as revenues climbed by a smaller 15 percent, to $324 million. For the six months to June, profit is up to $224 million from $188 million, a 19 percent spurt, from revenues of $590 million versus $556 million in 2013. Earnings per share came in at $1.50 for the quarter and $2.65 for the half year. Earnings for the full year to December should reach $5.70 per share.
Price increase to push Witco 2015 profit
Trackbacks
-
[…] the Trinidad Stock Exchange was closed for two days during the carnival celebrations and ended with West Indian Tobacco jumping to close at new high of $125. For the overall market, only 10 securities changed hands of […]
-
[…] 2 advanced, 3 declined and 6 traded firm with a total of 297,532 units, valued at $1,836,996 with West Indian Tobacco closing at a new 52 weeks’ high after putting on $1. At the close of the market, the Composite […]
-
[…] of 1 cent at $37.07, Unilever Caribbean traded 1,050 shares at $64.51 with a gain of 1 cent and West Indian Tobacco with a volume of 122,699 shares traded for $14,888,215, ended at $121.34, up by a cent. Declines| […]
-
[…] after gaining 1 cent. Prestige Holdings gained 3 cents to end at $9.60 while 214 shares traded and West Indian Tobacco trading 2,000 shares and gained 2 cents to $121.43. Declines| The stocks declining at the end of […]
-
[…] to end at $19.75. Prestige Holdings trading 1,000 shares and gained 1 cent to close at $9.61 and West Indian Tobacco added 4,780 shares valued at $583,160 while gaining 57 cents, to end at $122, a new 52 weeks’ […]
-
[…] high of $16. National Flour Mills with 3,000 shares trading to add 2 cents to end at $1.26 and West Indian Tobacco traded 750 shares to advance by 2 cents to end at $122.02, for a new 52 weeks’ high. Declines| […]
-
[…] gain, National Flour Mills contributed 20,860 shares to close at $1.39 with an increase of 4 cents, West Indian Tobacco gained 89 cents to end at $123, after trading 600 shares, for a new 52 weeks’ high. Firm Trades| […]
-
[…] of 4 cents at $17.55, Scotiabank ended with 1,729 units trading for 2 cents higher at $62.02 and West Indian Tobacco gained 8 cents to end at a new 52 weeks’ high of $122.10, with 5,000 shares changing hands, valued […]
-
[…] weeks’ high of $23, also closing at a new high for the last twelve months is IC Insider BUY RATED West Indian Tobacco that gained 1 cent to $121.26 while trading 116 shares. The other stock gaining in Wednesday’s […]
-
[…] that posted a volume of 67,578 shares valued at $1,502,695 and advanced by 10 cents to $22.25 and West Indian Tobacco with only 120 shares, advanced by 1 cent to end at $119.04. Firm Trades| Stocks closing with prices […]
[…] West Indian Tobacco recorded an increase of 6.9 percent in profit before taxation of TT$136.8 million, for the three […]