Witco records $515.5m profit

West Indian Tobacco (Witco) recorded a 5.9 percent increase in profit before taxation of $693.5 million for the year ending December 2015, with profit after taxation rising by 5.4 percent to $515.5 million, from $489.2 million in 2014.The improved results stemmed from a moderate increase in revenues of $1.277 billion compared to $1.25 billion and a slight fall in cost. Cost of sales fell from $234 million to231 million while distribution costs rose moderately to $13.57 million from $12,776 million in 2014. Administrative expenses fell to $81 million from $89 million and other operating expenses rose sharply to $33.45 million from $26.55 million incurred in the previous year.
The company is recommending the approval of a final dividend of $2.18 per share at the Annual Meeting in April and said that when added to the interim dividends of $3.70, will result in a total dividend of $5.88 per share for 2015. If approved, the final dividend will be paid on 6 May 2016. Dividends paid based on the 2014 profit were $5.51.
The lack of meaningful growth in revenues and profit will mean a price increase is not far away but the recession in Trinidad and Tobago could see a delay in any price increase.
The stock traded at $126.30 on Friday giving it a PE of 20.6, with earnings per share for 2015 being $6.12.