Witco profit drops 36.3% amid illicit trade concerns

The West Indian Tobacco Company Ltd (Witco) navigates a challenging fiscal year, with profits dipping by 36.3% to $109.8 million for the year ending December 31, 2025. Managing Director Hiram Murillo highlighted significant headwinds, including a pronounced shift in consumer purchasing habits towards more affordable alternatives, the persistent issue of illicit trade, and an overall reduction in local sales volumes. These factors have collectively impacted the company's bottom line.

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The company remains hopeful that continued engagement with the Government will support a measured adjustment to this regime.

Murillo used the company's 121st annual meeting at Queen's Hall, Port of Spain, to reiterate his call for a collaborative meeting with regulators, policymakers, and industry stakeholders. The objective is to jointly address the shared challenges facing the sector and to foster a marketplace that is both balanced and well-regulated. A key point of discussion with shareholders was the importance of reviewing the current excise tax structure. Witco advocates for a more gradual approach to excise increases, one that balances government revenue objectives with the need for industry sustainability, consumer protection, and effective containment of illicit trade.

"The company remains hopeful that continued engagement with the Government will support a measured adjustment to this regime," the release stated. Murillo acknowledged the difficult operating environment, stating, "We operated in a year defined by economic pressure, evolving consumer behaviour and increasing illicit trade, all of which impacted our performance." However, he expressed confidence in Witco's resilience, citing its strong regional footprint, robust operating model, and ongoing focus on innovation and sustainability. The company's priority remains delivering sustainable value while making a meaningful contribution to the national economy.

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We operated in a year defined by economic pressure, evolving consumer behaviour and increasing illicit trade, all of which impacted our performance. However, these conditions have reinforced the importance of agility, disciplined execution and a clear long-term strategy. We remain confident in our ability to navigate this environment, supported by a strong regional footprint, a resilient operating model and a continued focus on innovation and sustainability. Our priority is to deliver sustainable value while contributing meaningfully to the national economy.

Illicit trade, in particular, is a growing concern, with Witco's fourth-quarter estimates indicating a 50% surge in illicit activity following the 2026 national budget's excise increase on cigarettes. This rise is largely attributed to the widening price gap between legal and illegal products. Despite these challenges, shareholders at the annual meeting demonstrated continued confidence in the company's strategic direction. Witco remains committed to navigating the evolving landscape and positioning itself for sustained growth, working collaboratively with all stakeholders to ensure a well-regulated market.

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The company is committed to executing with excellence and working collaboratively with regulators, policymakers and industry stakeholders to address shared challenges and support a balanced, well-regulated marketplace.