Revenues for West Indian Tobacco rose moderately to $293 million from $282 million for the quarter and for the nine months to September 2015 and increase of 4 percent to $909 from $872 million in 2014, including excise taxes.
The slight revenue growth resulted in a 9.7 percent increase in profit before taxation of TT$479 million, for the nine months and profit after taxation of $354 million, an increase of 7.6 percent over 2014. For the September 2015 quarter, profit after taxation ended at $113 million an increase of 6.7 percent over 2014.
Expenses were kept below that of 2014, in the latest quarter and year to date, with only selling and distribution expenses showing a slight increase of $600,000 for the year to date.
The Board has accordingly approved the payment of a third interim dividend of $1.44 per ordinary share payable on 30 November 2015 to shareholders of record at close of business on 11 November. For the year to date dividends already paid amounts $3.17. Witco has been paying all of its profit each as dividends with a pay out of $5.51 from full year earnings of $5.81 in 2014.
The company is a subsidiary of British American Tobacco Company and is listed on the Trinidad and Tobago Stock Exchange (TTSE), it manufactures and markets cigarettes. The stock last traded at $126 on the TTSE. Earnings per share for the quarter is, $1.34 versus $1.26 in 2014 and for the year to date, $4.20 versus $3.91 in 2014 and the net book value works out at $4 per share with the equity of $336 million. Earnings per share should reach $6.25 for 2015 and would result in a PE of 20 times earnings.
Witco growing profit up bit by bit
Witco’s Q2 profit rise 13%
Trinidadian based West Indian Tobacco recorded a 13 percent increase in profit after taxation amounting to $143 million up from $127 million in 2014. Profit after taxation for the half year, ended at $241.4 million, an increase of 8 percent over the 2014 results.
Revenues net of excise taxes rose 7.5 percent to $283 million for the quarter and for the six months ended June, an increase of 6 percent to $506 million.
Results benefited from lower cost of sales in the June quarter, declining from $62 million to $60 million while there was only a $1 million increase to $112 million for the six months. Administrative Expenses declined to $24.7million from $29.3 million for the June 2014 quarter and for the half year $45.3 million to $50.6 million. Other Operating Expenses climbed to $7 million from $5 for the quarter and for the half year these cost were flat with $13.6 million for 2015 versus $13.6 in 2014.
Earnings per share for the June 2015 quarter ends at $1.70 and $2.87 for the six months this year for the full year earnings should be in the $6.30 region and would be up from $5.81 earned for 2014. The stock last traded at $125.43 on the Trinidad and Tobago Stock Exchange and would result in a PE for the stock of 20.
The Board approved the payment of a second interim dividend of $1.26 per ordinary share payable on 26 August, to shareholders of record at close of business on August 7th. The interim dividend, amounts to $106 million.
Price increase to push Witco 2015 profit
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.
Profit surge 37% for Witco Q4
The Trinidad & Tobago’s based West Indian Tobacco Company (Witco) recorded profit before taxation of TT$556.3 million for the year ended December 2013, an increase of 16.8 percent over 2012 and profit after taxation of TT$411 million, an increase of 17.4 percent over the similar period.
More importantly, the final quarter’s revenue climbed by 17.8 percent to TT$341.4 million from TT$289.8 million in 2012 and profit surged 37.4 percent to $125.9 million from TT$91.6 million in 2012. Earnings per share for the last quarter amounted to $1.49 and $4.88 for the full year. The last quarter earnings place Witco on track to deliver profit for 2014 in the order of $6 per share. The improvement for the past year came against the back ground where the Carreras, the Jamaican the sister company that Witco is the main supplier of finished cigarettes, suffered a reduction in sales during the year.
Gross profit margin, an indication of how profitable a company can be, is at a level that most companies can only dream of at with an eye-popping 290 percent for the December quarter up from 248 percent in 2012 and 287 percent for the full year and 251.5 percent for 2012.
Cost was well contained for the year with distribution expenses falling from $20 million to $18 million. Administrative expenses fell to $94.6 million from $96.5 million and other operating expenses inched up by $1.5 million to $32.8 million while cost of sales fell moderately to $243.8 million by $3 million.
Witco approved a final dividend of $1.61 per share which brings the total dividend to $4.54 per share for out of the 2013 profit.
At the end of the year shareholders equity stood at TT$281 million with provision of $36 million for dividend and cash of $212 million. There was no interest bearing debt on the books.
Witco stock sells at $118 or 19.7 times estimated 2014 profit and is priced at 24 times 2013 profit.
Related posts | WITCO profit up 20 percent | Carreras is back
WITCO profit up 20 percent
West Indian Tobacco reported profit of $115.4 million before tax for the three months ended March 2013, an increase of 18.4 percent over the corresponding period in 2012. Profit after tax for the quarter ended at $84.9 million, representing $1.01 per share, an increase of 19.6 percent over 2012 but is down on the December quarter’s figure. IC Insider estimates earnings to exceed last year’s figure and should end up around $4.40 for 2013.
While revenues climbed, the company was able to hold, or lower cost in the period. The cost of sales moved down by $1 million compared to March quarter 2012, as gross profit increased by $16 million and gross profit margin moved up to 73 percent from 70 percent in 2012. Distribution cost just barely inched up around $100,000 but administrative cost slipped slightly while other operating cost declined by $2 million to $14.5 million. The holding of expenses is quite a feat in a country where consumer prices rose by 7 percent since last year.
2012 results | For the year to December 2012 the company reported $4.16 with the December quarter being $1.08 or $91 million which was up strongly from the $79 million earned in 2011. Revenues for 2012 increased by 10 percent to reach $1.1 billion up from $1 billion in 2011.
Finances | Witco’s equity stands at $309 million at the end of March with cash funds of $212 million. Current assets total $308 million and current liabilities $137 million and there is no interest bearing debt.
Dividend | The Board has accordingly approved the payment of a first interim dividend of $0.82 per ordinary share payable on 10 May 2013 to shareholders of record at close of business on 01 May 2013. Last year the company paid out 92 percent of its profit as dividends and the same is expected this year, which has been the norm for several years. The stock last traded at $117.25 and has a PE of 27 and the dividend yield around 3.4 percent much higher than long term rates in the twin island republic. The stock traded at $70.17 in early July last year and has gained 67 percent since then, well ahead of the movement in profits.
