AUDITED SUMMARY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
INDEPENDENT AUDITORS' REPORT ON THE SUMMARY FINANCIAL STATEMENTS
To the Shareholders of The West Indian Tobacco Company Limited
Opinion
The summary financial statements, which comprise the summary statement of financial position as at December 31, 2022, the summary statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited financial statements of West Indian Tobacco Company Limited ("the Company") for the year ended December 31, 2022.
In our opinion, the accompanying summary financial statements are consistent, in all material respects, with the audited financial statements, in accordance with International Financial Reporting Standards (IFRS).
Summary Financial Statements
The summary financial statements do not contain all the disclosures required by the International Financial Reporting Standards. Reading the summary financial statements and our report thereon, therefore, is not a substitute for reading the audited financial statements and our report thereon. The summary financial statements and the audited financial statements do not reflect the effects of events that occurred subsequent to that date of our report on the audited financial statements.
Management's Responsibility for the Summary Financial Statements
Management is responsible for the preparation of the summary financial statements in accordance with IFRS and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on whether the summary financial statements are consistent, in all material respects, with the audited financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), "Engagements to Report on Summary Financial Statements."
The Audited Financial Statements and Our Report
Thereon
We expressed an unmodified audit opinion on the audited financial statements in our report dated March 14, 2023. That KPMG
report also includes the communication of key audit matters. Chartered Accountants Savannah East
Key audit matters are those matters that in our professional | 11 Queen's Park East |
judgement, were of most significance in our audit of the | March 14, 2023 |
financial statements for the current period. |
AUDITED SUMMARY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CHAIRMAN'S REVIEW
In a year of varied internal and external challenges, West Indian Tobacco has recorded Profit Before Taxation of $379 million (2021: $537 million) and Profit for the Year at $262 million (2021: $379 million). Total Comprehensive Income for the Year of $251 million was negatively impacted by an actuarial loss following the re-measurement of retirement and post-employment benefit obligations.
The business environment continued to present changes in consumption patterns, which, coupled with the issue of the increased presence of suspected illicit products, has adversely impacted revenue. The Company remains a net earner of foreign exchange by virtue of its activity in foreign markets. We will continue to expand our product offering to widen the options available to our customers and build the Lucky Strike family.
Directors will recommend to shareholders, a final dividend payment of $0.26 per share at the Annual General Meeting on Tuesday 25th April 2023. When added to the interim dividends of $0.72, this would result in a total dividend of $0.98 per share for 2022. The dividend yield is 4.5%.
If approved, the final dividend will be paid on 25 May 2023 to shareholders of record at close of business on 08 May 2023. The Register of Shareholders will be closed on 09 and 10 May 2023 for the processing of transfers.
Ingrid Lashley
Chairman
14 March 2023
SUMMARY STATEMENT OF FINANCIAL POSITION
SUMMARY STATEMENT OF COMPREHENSIVE INCOME
UNAUDITED | UNAUDITED | AUDITED | AUDITED | ||||
Three Months | Three Months | Year | Year | ||||
Ended | Ended | Ended | Ended | ||||
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 | ||||
TT$'000 | TT$'000 | TT$'000 | TT$'000 | ||||
Revenue | 175,190 | 241,772 | 724,090 | 852,251 | |||
Cost of sales | (67,187) | (59,807) | (226,290) | (207,461) | |||
Gross profit | 108,003 | 181,965 | 497,800 | 644,790 | |||
Distribution costs | (8,992) | (3,193) | (14,653) | (9,931) | |||
Administrative expenses | (21,617) | (20,334) | (72,516) | (73,629) | |||
Other operating expenses | (3,967) | (4,043) | (32,671) | (23,838) | |||
Operating profit | 73,427 | 154,395 | 377,960 | 537,392 | |||
Finance income | 776 | 22 | 1,277 | 116 | |||
Finance cost | (123) | (146) | (254) | (296) | |||
Profit before taxation | 74,080 | 154,271 | 378,983 | 537,212 | |||
Taxation | (21,050) | (45,466) | (117,403) | (158,183) | |||
Profit for the year | 53,030 | 108,805 | 261,580 | 379,029 | |||
Other comprehensive income: | |||||||
Items that will not be reclassified | |||||||
to profit or loss | |||||||
Re-measurement of retirement and | |||||||
post-employment benefit obligations | (806) | 13,400 | (15,029) | 13,305 | |||
Related Tax | 242 | (4,019) | 4,509 | (3,991) | |||
Other comprehensive | |||||||
income - net of tax | (564) | 9,381 | (10,520) | 9,314 | |||
Total comprehensive | |||||||
income for the year | 52,466 | 118,186 | 251,060 | 388,343 | |||
Earnings per ordinary share | $0.21 | $0.43 | $1.04 | $1.50 | |||
Dividends per ordinary share | $0.20 | $0.41 | $0.98 | $1.42 |
SUMMARY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
ASSETS
Non-current assets
Property, plant and equipment
Deferred income tax asset
Retirement benefit asset
Current assets
Inventories
Trade and other receivables
Taxation recoverable
Cash and cash equivalents
Total assets
EQUITY
Share capital
Revaluation surplus
Retained earnings
Total equity
LIABILITIES
Non-current liabilities Deferred income tax liability Retirement benefit obligation
Post-employment medical benefit obligation Lease liabilities
Current liabilities
Trade and other payables
Due to parent company
Dividends payable
Lease liabilities
Total liabilities
Total equity and liabilities
AUDITED AUDITED 31.12.22 31.12.21
TT$'000 TT$'000
283,503 264,337
9,017 466
-
3,344
292,520 268,147
85,298 50,643
124,277 126,877
4,969 4,917
276,372 368,496
490,916 550,933
783,436 819,080
42,120 42,120
57,986 58,936
352,113 499,283
452,219 600,339
41,726 43,708
5,969-
4,867 5,028
3,986 535
56,548 49,271
124,701 123,547
100,854 2,023
47,617 43,360
1,497 540
274,669 169,470
331,217 218,741
783,436 819,080
Share | Revaluation | Retained | Shareholders' | ||||
Capital | Surplus | Earnings | Equity | ||||
Audited Year Ended | TT$'000 | TT$'000 | TT$'000 | TT$'000 | |||
31 December 2022 | |||||||
Balance at 1 January 2022 | 42,120 | 58,936 | 499,283 | 600,339 | |||
Comprehensive income | |||||||
Profit for the year | - | - | 261,580 | 261,580 | |||
Other comprehensive income | |||||||
Re-measurement of retirement and | |||||||
post-employment benefit | |||||||
obligations - net of tax | - | - | (10,520) | (10,520) | |||
Depreciation transfer on buildings | |||||||
- net of tax | - | (950) | 950 | - | |||
Transactions with owners | |||||||
Dividends | - | - | (399,180) | (399,180) | |||
Balance at 31 December 2022 | 42,120 | 57,986 | 352,113 | 452,219 | |||
Audited Year ended | |||||||
31 December 2021 | |||||||
Balance at 1 January 2021 | 42,120 | 59,886 | 475,456 | 577,462 | |||
Comprehensive income | |||||||
Profit for the year | - | - | 379,029 | 379,029 | |||
Other comprehensive income | |||||||
Re-measurement of retirement and | |||||||
post-employment benefit | |||||||
obligations - net of tax | - | - | 9,314 | 9,314 | |||
Depreciation transfer on buildings | |||||||
- net of tax | - | (950) | 950 | - | |||
Transactions with owners | |||||||
Dividends | - | - | (365,466) | (365,466) | |||
Balance at 31 December 2021 | 42,120 | 58,936 | 499,283 | 600,339 | |||
Ingrid Lashley | Raoul Glynn | ||
Chairman | Managing Director |
AUDITED SUMMARY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SUMMARY STATEMENT OF CASH FLOWS
AUDITED | AUDITED | |||||||
Year | Year | |||||||
Ended | Ended | |||||||
31.12.22 | 31.12.21 | |||||||
TT$'000 | TT$'000 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Profit before taxation | 378,983 | 537,212 | ||||||
Adjustments for: | ||||||||
Depreciation | 14,388 | 14,968 | ||||||
Loss on disposal of property, plant and equipment | 89 | 30 | ||||||
Net decrease in retirement and other post-employment | ||||||||
benefit obligations excluding actuarial losses | (5,877) | (9,146) | ||||||
Interest income | (1,277) | (116) | ||||||
Interest expense | 254 | 296 | ||||||
Operating profit before working capital changes | 386,560 | 543,244 | ||||||
Changes in working capital: | ||||||||
Increase in inventories | (34,655) | (3,727) | ||||||
Decrease/(increase) in trade and other receivables | 2,600 | (76,059) | ||||||
Increase in trade and other payables | 678 | 11,378 | ||||||
Increase/(decrease) in due to parent company | 98,831 | (5,325) | ||||||
Cash generated from operating activities | 454,014 | 469,511 | ||||||
Interest paid | (254) | (296) | ||||||
Taxation paid | (117,766) | (156,028) | ||||||
Net cash from operating activities | 335,994 | 313,187 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of property, plant and equipment | (33,643) | (29,572) | ||||||
Interest received | 1,277 | 116 | ||||||
Net cash used in investing activities | (32,366) | (29,456) | ||||||
CASH FLOWS USED IN FINANCING ACTIVITIES | ||||||||
Dividends paid | (394,920) | (362,752) | ||||||
Lease payments | (832) | (404) | ||||||
Net cash used in financing activities | (395,752) | (363,156) | ||||||
Net decrease in cash and cash equivalents | (92,124) | (79,425) | ||||||
CASH AND CASH EQUIVALENTS | ||||||||
AT BEGINNING OF YEAR | 368,496 | 447,921 | ||||||
CASH AND CASH EQUIVALENTS | ||||||||
AT END OF YEAR | 276,372 | 368,496 | ||||||
Represented by: | ||||||||
Cash at bank and in hand | 276,372 | 368,496 | ||||||
276,372 | 368,496 | |||||||
Note 4: Segment Information
Primary reporting format - geographical segment
Domestic | CARICOM | Unallocated | Total | |||
& Non- | ||||||
CARICOM | ||||||
Year ended 31 December 2022 | TT$'000 | TT$'000 | TT$'000 | TT$'000 | ||
Revenue | 590,330 | 133,760 | - | 724,090 | ||
Gross Profit | 472,890 | 24,910 | - | 497,800 | ||
Profit for the year includes: | ||||||
- Depreciation | - | - | (14,388) | (14,388) | ||
Year ended 31 December 2021 | ||||||
Revenue | 748,482 | 103,769 | - | 852,251 | ||
Gross Profit | 630,484 | 14,306 | - | 644,790 | ||
Profit for the year includes: | ||||||
- Depreciation | - | - | (14,968) | (14,968) | ||
Total Segment assets | ||||||
31 December 2022 | 131,910 | 77,665 | 573,861 | 783,436 | ||
31 December 2021 | 135,709 | 41,811 | 641,560 | 819,080 | ||
Total segment assets include | ||||||
additions to property, | ||||||
plant and equipment as follows: | ||||||
31 December 2022 | - | - | 33,643 | 33,643 | ||
31 December 2021 | - | - | 29,572 | 29,572 | ||
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 $587,013,776 (2021: $748,000,000) of the Company's total revenues. This consists of a 50% split between the two companies.
NOTES TO THE SUMMARY INTERIM FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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 March 14, 2023.
Note 2: Basis of Preparation
This summary financial information for the year ended 31 December 2022, 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). |
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, are accrued using the tax rate that would be applicable to expected total annual earnings.
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
Year end balances arising from sales/purchases of goods and services:
Receivables from related parties
Payables to related parties
Payables to parent company
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 On Ordinary Shares Final dividend - prior year
Second interim dividend
Third interim dividend
31.12.22 31.12.21
TT$'000 TT$'000
133,760 | 103,769 |
23,817 | 22,470 |
70,598 | 45,040 |
32,934 | 40,638 |
37,879 | 37,720 |
29,866 | 26,437 |
38,194 | 20,362 |
100,854 | 2,023 |
8,543 | 7,010 |
5 | 3 |
368 | 185 |
7,032 | 15,012 |
24,930 | 22,930 |
217,221 | 192,067 |
98,561 | 98,561 |
83,398 | 74,838 |
399,180 | 365,466 |
The Full Audited Financial Statements will be made available in the
2022 Annual Report, which will be available for viewing or downloading at
www.westindiantobacco.com from 03 April 2023.
A final dividend in respect of 2022 of $0.26 cents per share (2021: $0.70 cents per share) amounting
to $65,707,000 (2021: $176,904,000) is to be proposed at the Annual General Meeting to be held on April 25, 2023. If approved, the total dividend for the year will be $0.98, 31% lower than the dividend distribution of $1.42 with respect to 2021.
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West Indian Tobacco Company Ltd. published this content on 17 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 March 2023 22:56:04 UTC.