DIRECTORS of the West Indian Tobacco Company Ltd (WITCO) have recommended a $0.39 per share dividend payment even as the company reports a 15.3 per cent reduction in its profit before tax in the first six months of 2022 when compared with the same period last year.

In the company's unaudited interim financial statements for the six-month period that ended on June 30, WITCO noted a profit before tax of $225.1 million, about $40.6 million less than the $265.7 million recorded for the same period in 2021.

In a statement on Wednesday, WITCO chairman Ingrid Lashley said, "Revenue declined by $26.7 million, or 6.5 per cent over the same period last year, driven mainly by lower sales volume locally, offset by increased sales to export markets."

Lashley said the lower local sales were caused by "relatively slow economic activity as the recovery anticipated after the removal of certain covid19 restrictions has not materialised to date."

She added that the company's introduction of "ultra-low-priced" offers at the end of 2021 in response to a change in purchasing patterns also contributed to a reduction in revenue.

She said, however, that management remained optimistic going into the second half of the fiscal year based on its plans to recover customer confidence in TT.

On the subject of dividends, Lashley said the board of directors, undaunted by the financial results of the first half of 2022, would continue with its dividend payout programme for this fiscal year.

"In this regard, directors have recommended an interim dividend of $0.39 per ordinary share which will be paid on August 24 to shareholders of record at the close of business on August 5."

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