West Indian Tobacco : 27 Oct 2022 – The West Indian Tobacco Company Limited – Unaudited Interim Financial Statements for the nine months ended September 30, 2022

UNAUDITED INTERIM RESULTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022

CHAIRMAN'S REVIEW

West Indian Tobacco has recorded Profit after Tax of $208.6 million for the nine-month period ended 30th September 2022, a decrease of $61.7 million or 22.8% below last year.

Revenue was reduced by $61.6 million or 10.1%, largely driven by a decline in volume in Lucky Strike Red's newest stock unit. Generally, other brands within the portfolio continue to grow. The latter is reflective of the resilience of the product offerings, even within a market where suspected illicit trade continues. The Company has responded swiftly to the market reaction to the latest Lucky Strike offer and has taken steps to adjust in response to consumer preferences. For this, we have already seen some progress.

The Board of Directors has recommended an interim dividend of $0.33 per ordinary share, which, with the previous dividend of $0.39 per share, totals $0.72 per share for the year to date. This is in line with the previous year's return to shareholders as at the end of quarter 3.

The dividend per share of $0.33 will be paid on 24th November 2022 to shareholders of record at the close of business on 07th November 2022. The Register of Shareholders will be closed on 08th and 09th November 2022 for the processing of transfers.

Ingrid Lashley

Chairman

26 October 2022

SUMMARY STATEMENT OF FINANCIAL POSITION

SUMMARY STATEMENT OF COMPREHENSIVE INCOME

	UNAUDITED	UNAUDITED	UNAUDITED	UNAUDITED
	Three Months Three Months Nine Months Nine Months
			Ended	Ended	Ended	Ended
	30.09.22	30.09.21	30.09.22	30.09.21
			TT$'000	TT$'000	TT$'000	TT$'000
Revenue	164,698	199,602	548,900	610,478
Cost of sales	(54,112)	(56,473)	(159,103)	(147,654)
Gross profit			110,586	143,129	389,797	462,824
Distribution costs	(2,173)	(2,348)	(5,661)	(6,738)
Administrative expenses	(19,373)	(18,452)	(50,899)	(54,470)
Other operating expenses	(9,523)	(5,071)	(28,704)	(18,620)
Operating profit			79,517	117,258	304,533	382,996
Finance income			321	50	501	94
Finance costs	(41)	(40)	(131)	(150)
Profit before taxation			79,797	117,268	304,903	382,940
Taxation	(23,588)	(34,487)	(96,353)	(112,717)
Profit for the period			56,209	82,781	208,550	270,223
Other comprehensive income:
Items that will not be reclassified
to profit or loss
Re-measurement of retirement and
post-employment benefit obligations	-	(31)	(14,223)	(96)
Related tax	-	9	4,267	29
Other comprehensive income
- net of tax	-	(22)	(9,956)	(67)
Total comprehensive income
for the period	56,209	82,759	198,594	270,156
Earnings per ordinary share	$0.22	$0.33	$0.83	$1.07

ASSETS Non-current assets

UNAUDITED	UNAUDITED	AUDITED
30.09.22	30.09.21	31.12.21
	TT$'000	TT$'000	TT$'000

SUMMARY STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

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

Dividends payable Lease liabilities

Total liabilities

Total equity and liabilities

273,025	250,272	264,337
9,400	7,292	466
-	-	3,344
282,425	257,564	268,147
75,318	41,157	50,643
187,153	117,667	126,877
4,917	4,917	4,917
199,653	320,683	368,496
467,041	484,424	550,933
749,466	741,988	819,080
42,120	42,120	42,120
58,222	59,172	58,936
455,235	460,787	499,283
555,577	562,079	600,339
42,199	40,622	43,708
5,681	14,558	-
4,632	4,929	5,028
713	174	535
53,225	60,283	49,271
93,308	76,404	125,570
46,626	43,222	43,360
730	-	540
140,664	119,626	169,470
193,889	179,909	218,741
749,466	741,988	819,080

Unaudited Nine Months Ended 30 September 2022

Balance at 1 January 2022

Comprehensive income

Profit for the period

Other comprehensive income Re-measurementof retirement and post-employmentbenefit obligations -netof tax

Depreciation transfer on buildings - net of tax

Transactions with owners

Dividends

Balance at 30 September 2022

Unaudited Nine Months Ended 30 September 2021

Balance at 1 January 2021

Comprehensive income

Profit for the period

Other comprehensive income

Re-measurement of retirement and post-employment benefit obligations -net of tax Depreciation transfer on buildings - net of tax

Transactions with owners Dividends

Balance at 30 September 2021

Share	Revaluation	Retained	Shareholders'
Capital	Surplus	Earnings	Equity
TT$'000	TT$'000	TT$'000	TT$'000

42,120	58,936	499,283	600,339
-	-	208,550	208,550

-	-	(9,956)	(9,956)
-	(714)	714	-
-	-	(243,356)	(243,356)
42,120	58,222	455,235	555,577

42,120	59,886	475,456	577,462
-	-	270,223	270,223

-	-	(67)	(67)
-	(714)	714	-
-	-	(285,539)	(285,539)
42,120	59,172	460,787	562,079

Ingrid Lashley	Raoul Glynn
Chairman	Managing Director

UNAUDITED INTERIM RESULTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022

	SUMMARY STATEMENT OF CASH FLOWS			Note 4: Segment Information
			UNAUDITED	UNAUDITED
				Domestic	CARICOM	Unallocated	Total
			Nine Months	Nine Months			TT$'000	TT$'000	TT$'000	TT$'000
			Ended	Ended	Nine Months Ended 30 September 2022
			30.09.22	30.09.21
			Revenue	463,071	85,829	-	548,900
			TT$'000	TT$'000
			Gross Profit	374,580	15,217	-	389,797
	CASH FLOWS FROM OPERATING ACTIVITIES
					Profit for the period includes:
	Profit before taxation	304,903	382,940		- Depreciation	-	-	(10,649)	(10,649)
	Adjustments for:
	Depreciation	10,649	9,757		Nine months Ended 30 September 2021
	Loss on disposal of property, plant and equipment	-	29		Revenue	532,209	78,269	-	610,478
	Net decrease in retirement and other post employment					Gross Profit	450,261	12,563	-	462,824
	benefit obligations excluding actuarial losses	(5,594)	(4,742)		Profit for the period includes:
	Interest income	(501)	(94)		- Depreciation	-	-	(9,757)	(9,757)
	Interest expense	131	150
	Operating profit before working capital changes		309,588	388,040		Total Segment assets
	Changes in working capital:					30 September 2022	204,204	58,267	486,995	749,466
					30 September 2021	112,250	46,574	583,164	741,988
	(Increase)/decrease in inventories	(24,675)	5,759
	Increase in trade and other receivables	(60,276)	(66,849)		Total segment assets include
	Decrease in trade and other payables	(15,565)	(18,300)
	Decrease in due to parent company	-	(7,348)		additions to property,
	Cash generated from operating activities		209,072	301,302		plant and equipment as follows:
	Interest paid	(131)	(150)		30 September 2022	-	-	19,337	19,337
	Taxation paid		(117,766)	(133,921)
	Net cash from operating activities	91,175	167,231		30 September 2021	-	-	10,294	10,294
	CASH FLOWS FROM INVESTING ACTIVITIES					The Company is organised and managed on the basis of two geographic regions, namely
	Purchase of property, plant and equipment	(19,337)	(10,294)		the Domestic market and the Caricom market. These are the reportable segments for the
	Interest received	501	94		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
	Net cash used in investing activities	(18,836)	(10,200)		decision makers, for assessing performance and allocating resources.
	CASH FLOWS USED IN FINANCING ACTIVITIES					The Company is a single product business providing cigarettes. While the Company has
	Dividends paid	(240,090)	(282,964)		clearly differentiated brands, segmentation among a wide portfolio of brands is not part of
		the regular internally reported financial information.
	Lease payments		(1,092)	(1,305)
	Net cash used in financing activities		(241,182)	(284,269)		Primary reporting format - geographical segment
	Net decrease in cash & cash equivalents	(168,843)	(127,238)		With the exception of the Domestic market, no other individual country within the Caricom
	CASH AND CASH EQUIVALENTS
		368,496	447,921		market contributes more than 10% of total revenue. Information is analysed by segment only
	AT BEGINNING OF PERIOD		where relevant and applicable. Where there is no logical allocation basis, items have been
	CASH AND CASH EQUIVALENTS AT END OF PERIOD	199,653	320,683		disclosed as unallocated.
	Represented by:					All the Company's non-current assets are located in Trinidad and Tobago. Revenues from two
	57,929	178,926		customers of the Company's Domestic segment represented approximately $463,071,000
	Cash at bank and in hand		(2021: $532,209,000) of the Company's total revenues. This consist of a 50% split between
	Short-term deposits		141,724	141,757		the two companies.
		199,653	320,683
	NOTES TO THE SUMMARY INTERIM FINANCIAL STATEMENTS								30.09.22	30.09.21
								TT$'000	TT$'000
	FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2022			Note 5: Related Party Transactions
	Note 1: General Information					Sale of goods and services:
					Sale of goods - related parties					85,829	78,269
	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	Purchase of goods and services:
	address of the registered office is Corner Eastern Main Road and Mount D'Or Road,
	Purchase of goods - related parties					45,119	28,144
	Champs Fleurs, Trinidad, West Indies. It is a subsidiary	of British American Tobacco
	Purchase of services - related parties					37,322	44,509
	(Investments) Limited, a company registered in the United Kingdom. Its ultimate parent
	Purchase of services - parent company					12,604	14,993
	company is British American Tobacco p.l.c., a company registered in the United Kingdom.
	Period end balances arising from sales/
	The principal business activities of the Company are the manufacture and sale of cigarettes.	purchases of goods and services:
	Receivables from related parties					16,526	29,306
	This condensed consolidated financial information was approved for issue on 26 October	Payables to related parties					22,526	21,131
	Key management compensation
	2022.
						Salaries and other short-term employee benefits			6,791	6,687
	Note 2: Basis of Preparation					Post-retirement medical obligations					3	4
	This summary financial information for the nine month period ended 30 September 2022,	Post-retirement benefits					138	342
	has been prepared in accordance with International Accounting Standard 34 (IAS34),	Note 6: Capital Commitments
	'Interim Financial Reporting' as well as the requirements of the Securities Act 2012 which
	Authorised and contracted for, and not provided for
	go beyond IAS 34. The condensed consolidated interim financial information should be
	in the financial statements					4,314	22,262
	read in conjunction with the annual financial statements for the year ended 31 December
	2021, which have been prepared in accordance with International Financial Reporting	Note 7: Contingent Liabilities
	Standards (IFRS).					Customs & immigration bonds					22,930	22,930
	Note 3: Significant Accounting Policies					Note 8: Dividends Paid On Ordinary Shares
	These financial statements have been prepared under the historical cost convention, as
	Final dividend - prior year					176,904	192,067
	modified by the revaluation of land and buildings and in accordance with International
	Interim dividend					98,561	98,561
	Financial Reporting Standards (IFRS).
										275,465	290,628
	The accounting policies applied are consistent with those of the annual financial
	An interim dividend of $0.33 per share (2021 $0.33 per share) was approved by the Board
	statements for the year ended 31 December 2021, as described in those annual	of Directors on 26 October 2022, and will be paid on 24 November 2022 to shareholders
	financial statements with the exception of taxes on income in the interim periods are	of record as at 07 November 2022. This interim dividend, amounting to $83,397,600
	accrued using the tax rate that would be applicable to expected total annual earnings.	(2021: $83,397,600) has not been recognised in these interim financial statements. It will
						be recognised in shareholders' equity in the year to 31 December 2022.