UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
CHAIRMAN'S REVIEW
The West Indian Tobacco Company Limited recorded a Profit Before Tax of $144.4 million over the six-month period ended 30th June 2023 with an improved profit performance in the second quarter, providing an increase of 105% over the previous quarter. The year-to-date performance however, represents a decrease of $80.7 million or 36% over the corresponding period last year.
The second quarter recorded growth trends in both domestic and export volume, which is reflected in a 46% increase in Net Turnover over the first quarter. This provides assurance that recent investments in the transformation of the portfolio is positively changing the landscape while continuing to deliver value for money via new customer experiences, innovation and consistency in quality.
Work continues apace with a renewed focus on distribution of products to ensure that wherever there is demand for our products, they are available, on time and in full, and delivered via a best-in-class route to market model. We see this as our responsibility as the major local manufacturer, which will ensure the continued sustainability of operations and the well-being of our valued employees as we continue to contribute to the socio-economic development of Trinidad and Tobago.
This mid-year performance is in keeping with a prudent approach to an ever-changing operating environment. Directors have recommended an interim dividend of $0.26 per ordinary share which will be paid on 29 August 2023 to shareholders of record at the close of business on 10 August 2023. The Register of Shareholders will be closed on 11 and 14 August 2023 for the processing of transfers.
Ingrid L-A Lashley
Chairman
26 July 2023
SUMMARY STATEMENT OF FINANCIAL POSITION
UNAUDITED | UNAUDITED | AUDITED | ||||||||
30.06.23 | 30.06.22 | 31.12.22 | ||||||||
ASSETS | TT$'000 | TT$'000 | TT$'000 | |||||||
Non-current assets | ||||||||||
Property, plant and equipment | 281,454 | 269,297 | 283,503 | |||||||
Deferred income tax asset | 11,496 | 8,294 | 9,017 | |||||||
Retirement benefit asset | 285 | - | - | |||||||
293,235 | 277,591 | 292,520 | ||||||||
Current assets | ||||||||||
Inventories | 76,587 | 57,581 | 85,298 | |||||||
Trade and other receivables | 116,781 | 140,505 | 124,277 | |||||||
Taxation recoverable | 255 | 4,917 | 4,969 | |||||||
Cash and cash equivalents | 205,767 | 314,035 | 276,372 | |||||||
399,390 | 517,038 | 490,916 | ||||||||
Total assets | 692,625 | 794,629 | 783,436 | |||||||
EQUITY | ||||||||||
Share capital | 42,120 | 42,120 | 42,120 | |||||||
Revaluation surplus | 57,508 | 58,459 | 57,986 | |||||||
Retained earnings | 393,906 | 474,025 | 352,113 | |||||||
Total equity | 493,534 | 574,604 | 452,219 | |||||||
LIABILITIES | ||||||||||
Non-current liabilities | ||||||||||
Deferred income tax liability | 43,711 | 43,074 | 41,726 | |||||||
Retirement benefit obligation | - | 5,913 | 5,969 | |||||||
Post-employment medical benefit obligation | 4,590 | 4,764 | 4,867 | |||||||
Lease liabilities | 4,531 | 784 | 3,986 | |||||||
52,832 | 54,535 | 56,548 | ||||||||
Current liabilities | ||||||||||
Trade and other payables | 70,327 | 118,281 | 124,701 | |||||||
Due to parent company | 37,174 | - | 100,854 | |||||||
Dividends payable | 37,305 | 46,456 | 47,617 | |||||||
Lease liabilities | 1,453 | 753 | 1,497 | |||||||
146,259 | 165,490 | 274,669 | ||||||||
Total liabilities | 199,091 | 220,025 | 331,217 | |||||||
Total equity and liabilities | 692,625 | 794,629 | 783,436 | |||||||
Ingrid L-A Lashley | Raoul Glynn | |
Chairman | Managing Director |
SUMMARY STATEMENT OF COMPREHENSIVE INCOME
UNAUDITED | UNAUDITED | UNAUDITED | UNAUDITED | |||||||
Three Months | Three Months | Six Months | Six Months | |||||||
Ended | Ended | Ended | Ended | |||||||
30.06.23 | 30.06.22 | 30.06.23 | 30.06.22 | |||||||
TT$'000 | TT$'000 | TT$'000 | TT$'000 | |||||||
Revenue | 182,047 | 182,147 | 306,961 | 384,202 | ||||||
Cost of sales | (65,104) | (52,198) | (116,608) | (104,991) | ||||||
Gross profit | 116,943 | 129,949 | 190,353 | 279,211 | ||||||
Distribution costs | (2,759) | (2,386) | (4,488) | (3,488) | ||||||
Administrative expenses | (16,195) | (17,985) | (32,830) | (31,526) | ||||||
Other operating expenses | (2,182) | (13,800) | (10,852) | (19,181) | ||||||
Operating profit | 95,807 | 95,778 | 142,183 | 225,016 | ||||||
Finance income | 1,289 | 133 | 2,422 | 180 | ||||||
Finance cost | (127) | (52) | (237) | (90) | ||||||
Profit before taxation | 96,969 | 95,859 | 144,368 | 225,106 | ||||||
Taxation | (28,836) | (35,566) | (42,199) | (72,765) | ||||||
Profit for the period | 68,133 | 60,293 | 102,169 | 152,341 | ||||||
Other comprehensive income: | ||||||||||
Items that will not be reclassified | ||||||||||
to profit or loss | ||||||||||
Re-measurement of retirement | ||||||||||
and post-employment benefit | ||||||||||
obligations | 6,936 | (14,223) | 6,936 | (14,223) | ||||||
Related tax | (2,081) | 4,267 | (2,081) | 4,267 | ||||||
Other comprehensive | ||||||||||
income - net of tax | 4,855 | (9,956) | 4,855 | (9,956) | ||||||
Total comprehensive income | ||||||||||
for the period | 72,988 | 50,337 | 107,024 | 142,385 | ||||||
Earnings per ordinary share | $0.27 | $0.24 | $0.40 | $0.60 |
SUMMARY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share | Revaluation | Retained | Shareholders' | ||||||
Capital | Surplus | Earnings | Equity | ||||||
TT$'000 | TT$'000 | TT$'000 | TT$'000 | ||||||
Unaudited Six Months Ended | |||||||||
30 June 2023 | |||||||||
Balance at 1 January 2023 | 42,120 | 57,986 | 352,113 | 452,219 | |||||
Comprehensive income | |||||||||
Profit for the period | - | - | 102,169 | 102,169 | |||||
Other comprehensive income | |||||||||
Re-measurement of retirement and | |||||||||
post-employment benefit obligations | |||||||||
- net of tax | - | - | 4,855 | 4,855 | |||||
Depreciation transfer on buildings | |||||||||
- net of tax | - | (478) | 478 | - | |||||
Transactions with owners | |||||||||
Dividends | - | - | (65,709) | (65,709) | |||||
Balance at 30 June 2023 | 42,120 | 57,508 | 393,906 | 493,534 | |||||
Unaudited Six Months Ended | |||||||||
30 June 2022 | |||||||||
Balance at 1 January 2022 | 42,120 | 58,936 | 499,283 | 600,339 | |||||
Comprehensive income | |||||||||
Profit for the period | - | - | 152,341 | 152,341 | |||||
Other comprehensive income | |||||||||
Re-measurement of retirement and | |||||||||
post-employment benefit obligations | |||||||||
- net of tax | - | - | (9,956) | (9,956) | |||||
Depreciation transfer on buildings | |||||||||
- net of tax | - | (477) | 477 | - | |||||
Transactions with owners | |||||||||
Dividends | - | - | (168,120) | (168,120) | |||||
Balance at 30 June 2022 | |||||||||
42,120 | 58,459 | 474,025 | 574,604 | ||||||
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
SUMMARY STATEMENT OF CASH FLOWS
UNAUDITED | UNAUDITED | ||||
Six Months | Six Months | ||||
Ended | Ended | ||||
30.06.23 | 30.06.22 | ||||
TT$'000 | TT$'000 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Profit before taxation | 144,368 | 225,106 | |||
Adjustments for: | |||||
Depreciation | 8,531 | 7,168 | |||
Net decrease/(increase) in retirement and other post-employment | |||||
benefit obligations excluding actuarial losses | 405 | (8,574) | |||
Interest income | (2,422) | (180) | |||
Interest expense | 237 | 90 | |||
Operating profit before working capital changes | 151,119 | 223,610 | |||
Changes in working capital: | |||||
Decrease/(increase) in inventories | 8,711 | (6,938) | |||
Decrease/(increase) in trade and other receivables | 7,496 | (13,628) | |||
Decrease in trade and other payables | (46,891) | (5,130) | |||
Decrease in due to parent company | (63,680) | - | |||
Cash generated from operating activities | 56,755 | 197,914 | |||
Tax refund received | 4,279 | - | |||
Interest paid | (237) | (90) | |||
Taxation paid | (49,165) | (75,778) | |||
Net cash from operating activities | 11,632 | 122,046 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (6,482) | (12,129) | |||
Interest received | (237) | 180 | |||
Net cash used in investing activities | |||||
(6,719) | (11,949) | ||||
CASH FLOWS USED IN FINANCING ACTIVITIES | |||||
Dividends paid | (76,019) | (165,020) | |||
Lease payments | 501 | 462 | |||
Net cash used in financing activities | (75,518) | (164,558) | |||
Net decrease in cash and cash equivalents | |||||
(70,605) | (54,461) | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 276,372 | 368,496 | |||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 205,767 | 314,035 | |||
Represented by: | |||||
Note 4: Segment Information
Primary reporting format - geographical segment
Domestic | CARICOM & | Unallocated | Total | ||
Non-CARICOM | |||||
TT$'000 | TT$'000 | TT$'000 TT$'000 | |||
Six months ended 30 June 2023 | |||||
Revenue | 239,372 | 67,589 | - | 306,961 | |
Gross Profit | 184,274 | 6,079 | - | 190,353 | |
Profit for the period includes: | |||||
Depreciation | - | - | (8,531) | (8,531) | |
Six months ended 30 June 2022 | |||||
Revenue | 327,314 | 56,888 | - | 384,202 | |
Gross Profit | 270,506 | 8,705 | - | 279,211 | |
Profit for the period includes: | |||||
Depreciation | - | - | (7,168) | (7,168) | |
Total segment assets | |||||
30 June 2023 | 117,184 | 76,686 | 498,755 | 692,625 | |
30 June 2022 | 154,165 | 54,672 | 585,792 | 794,629 | |
Total segment assets include | |||||
additions to property, plant and | |||||
equipment as follows: | |||||
30 June 2023 | - | - | 6,482 | 6,482 | |
30 June 2022 | - | - | 12,129 | 12,129 | |
The Company is organised and managed on the basis of two geographic regions, namely the Domestic market and the CARICOM market. During 2022, the Company was also contracted as a contingent supplier to a Non-CARICOM market. The Non-CARICOM market was included with the CARICOM market. These are the reportable segments for the Company as they form the focus of the Company's internal reporting systems and are the basis used by the Managing Director and the local management team, as the chief operating decision makers, for assessing performance and allocating resources.
The Company is a single product business providing cigarettes. While the Company has clearly differentiated brands, segmentation among a wide portfolio of brands is not part of the regular internally reported financial information.
Primary reporting format - geographical segment
With the exception of the Domestic market, no other individual country within the CARICOM market contributes more than 10% of total revenue. Information is analysed by segment only where relevant and applicable. Where there is no logical allocation basis, items have been disclosed as unallocated.
All the Company's non-current assets are located in Trinidad and Tobago. Revenues from two customers of the Company's Domestic segment represented approximately $239,372,000 (2022: $327,314,000) of the Company's total revenues. This consists of a 50% split between the two companies.
Cash at bank and in hand | 97,509 | 172,069 | |
Short-term deposits | 108,258 | 141,966 | |
205,767 | 314,035 | ||
NOTES TO THE SUMMARY INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2023
Note 1: General Information
The West Indian Tobacco Company Limited is incorporated in the Republic of Trinidad and Tobago. The Company is listed on the Trinidad and Tobago Stock Exchange. The address of the registered office is Corner Eastern Main Road and Mount D'Or Road, Champs Fleurs, Trinidad, West Indies. It is a subsidiary of British American Tobacco (Investments) Limited, a company registered in the United Kingdom. Its ultimate parent company is British American Tobacco p.l.c., a company registered in the United Kingdom.
The principal business activities of the Company are the manufacture and sale of cigarettes.
This summary financial information was approved for issue on July 26, 2023.
Note 2: Basis of Preparation
This summary financial information for the six-month period ended 30 June 2023, has been prepared in accordance with International Accounting Standard 34 (IAS34), 'Interim Financial Reporting' as well as the requirements of the Securities Act 2012 which goes beyond IAS 34. The summary interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2022, which have been prepared in accordance with International Financial Reporting Standards (IFRS).
Note 3: Significant Accounting Policies
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of land and buildings and in accordance with International Financial Reporting Standards (IFRS).
Note 5: Related Party Transactions
Sale of goods and services:
Sale of goods - related parties
Recharge of services - related parties
Purchase of goods and services:
Purchase of goods - related parties
Purchase of services - related parties
Purchase of services - parent company
Period end balances arising from sales/purchases of goods and services:
Receivables from related parties
Payables to related parties
Key management compensation
Salaries and other short-term employee benefits Post-retirement medical obligations Post-retirement benefits
Note 6: Capital Commitments
Authorised and contracted for, and not provided for in the financial statements
Note 7: Contingent Liabilities
Customs & immigration bonds
Note 8: Dividends Paid/Payable On Ordinary Shares
Final dividend - prior year
Interim dividend
30.06.23 30.06.22
TT$'000 TT$'000
67,589 | 56,888 |
15,971 | 7,619 |
24,934 | 28,455 |
28,117 | 29,371 |
6,132 | 8,796 |
29,289 | 21,787 |
20,630 | 31,253 |
4,968 | 4,132 |
3 | 2 |
184 | 93 |
3,134 | 1,363 |
24,930 | 22,930 |
65,707 | 176,904 |
65,707 | 98,561 |
131,414 | 275,465 |
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2022, as described in those annual financial statements, with the exception of taxes on income in the interim periods, which are accrued using the tax rate that would be applicable to expected total annual earnings.
An interim dividend of $0.26 per share (2022: $0.39 per share) was approved by the Board of Directors on 26 July 2023, and will be paid on 29 August 2022 to shareholders of record as at 10 August 2022. This interim dividend, amounting to $65,707,200 (2022: $98,560,800) has not been recognised in these interim financial statements. It will be recognised in shareholders' equity in the year to 31 December 2023.
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West Indian Tobacco Company Ltd. published this content on 28 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2023 12:41:08 UTC.