Home' Trinidad and Tobago Guardian : November 28th 2013 Contents Unilever Caribbean Ltd (UCL)
During the third quarter
Unilever Caribbean Ltd
(UCL) experienced a marginal
decline in turnover. This
measure moved from $140.2
million in 2012 to $138.2 mil-
lion in the current period, representing a con-
traction of 1.4 per cent.
Despite this fall off, the company s gross
profit improved to $57.2 million from $55.7
million in the 2012 period. Selling and distri-
bution cost exhibited a favourable change,
moving from $29.8 million in 2012 to $29.1
million in the current quarter. However, admin-
istrative expenses increased by more than $1
million, advancing from $7.8 million in 2012 s
third quarter to $8.9 million in the 2013 peri-
od.These changes, combined with net finance
income of $5k, allowed UCL to record an
improved pre-tax profit of $19.27 million; this
is $1.17 million or 6.5 per cent more than the
$18.1 million recorded for the same quarter in
A marginally lower tax bite helped UCL
record an after-tax profit of $14.38 million;
this was $1.38 million greater than the $13
million earned in 2012 s third quarter. On a
per share basis, during the 2013 third quarter
UCL delivered earnings of $0.55; this is 10 per
cent greater than the $0.50 earned in the com-
parative 2012 period.
For the full nine-month period UCL recorded
turnover of $419.1 million; compared to 2012 s
$410 million, this was an anaemic 2.2 per cent
improvement. What helped improve the bot-
tom line was the marginal increase in the com-
pany s cost of sales; this line item moved from
$250.8 million in 2012 to $251.7 million in 2013.
This allowed UCL to report a gross profit figure
of $167.4 million for the period; this is 5.2 per
cent greater than the $159.2 million earned
during the 2012 period.
Also helping to improve the bottom line
was other income of $1.526 million, which
represented the sale of the "Skippy" brand,
which was completed in the second quarter.
The company s brief narrative attributes
these improved results to "sustained growth
in personal care".
Consequently, can we infer from these cryp-
tic comments that the foods division has expe-
rienced more than its fair share of "chal-
Despite these modest results, UCL s share
price shows no signs of weakening. On Sep-
tember 26, 2013, 31,208 shares traded at $55.51
and the price closed on November 14, 2013,
at $56.03, reflecting a $0.52 improvement.
Ownership of these shares is not very wide-
spread. In fact, less than 11 per cent of the
company s shares are held by stockholders
owning less than 20,000 shares. On the few
occasions that trades are executed, less than
a few thousand shares change hands.
Angostura Holdings Ltd (AHL)
Sales for the quarter ending September 2013
fell by $8.5 million to $166.8 million from
2012 s 175.3 million. Despite this decline, gross
profit margin fell by a very modest $369k to
$105.915 million from last year s $106.284 mil-
lion. This indicates that the cost of sales is
being managed vigorously.
Selling and marketing expenses declined by
almost $2.1 million, moving from $35.2 million
in the same period last year to $33.1 million
in this session.
However, administrative expenses rose by
$2.6 million, advancing from $15.7 million in
2012 to $18.2 million in this quarter. The net
effect of these changes saw profit from oper-
ating activities close for the current period at
$54.5 million; this was $885k less than the
$55.4 million recorded for the third quarter in
The sharp decline in finance expenses helped
pull up this quarter s result. This line item fell
from $5.5 million in 2012 to a more modest
$1.2 million in the current quarter.
After including other income of $525k and
foreign exchange gains of $578k, the pre-tax
profit for 2013 s third quarter came in at $54.4
million. This result compares favourably with
the $47.4 million recorded for the same period
After allowing for taxation of $14.4 million,
the after tax picture came in at $40 million;
this figure is $3.7 million or 10.2 per cent
greater than the $36.3 million earned for the
third quarter of 2012.These figures translate
into an EPS for the quarter of $0.19 versus
$0.18 for the 2012 session.
For the full nine-month period, AHL deliv-
ered sales of $459.8 million versus $463.6
million for the same period in 2012. Notably,
the sales of non-alcoholic products improved
by a strong 25.5 per cent; this product category
moved from $71.1 million in 2012 to $89.2
million in the 2013 period. In contrast, sales
of alcoholic beverages slipped by 5.6 per cent
to $370.6 million from $392.6 million in the
Perhaps, of greater significance, are the
changes in the gross profit margins. In the
case of alcoholic beverages, the gross profit
came in at $90.6 million for the current period;
in 2012, this figure was $120.6 million. This
decline probably reflects that a disproportion-
ally higher level of bulk rum was sold instead
of the higher margin cased rum.
For non-alcoholic products, the gross profit
margin jumped by 52.5 per cent or from $27.6
million in 2012 to $42.2 million in the current
period. Products such as LLB and food sauces
are grouped in this category.
The company also benefitted from lower
finance costs, which declined from $23.8 mil-
lion in 2012 to $8 million in 2013. The sale of
Burns Stewart Distillers and the settlement
of its Euro denominated debt made significant
contributions to the current period results.
National Flour Mills Ltd (NFM)
For the three months ended September 2013
NFM experienced marginally lower sales. This
measure moved from $114.3 million for the
same period in 2012 to $112.9 million in the
2013 period. These lower sales were accom-
panied by a higher cost of sales figure; for
2012, this item was $89.1 million while, for
2013, it increased to $90.8 million. Conse-
quently, the gross profit measure fell to $22.06
million in the current period from $25.28 mil-
lion in 2012 s third quarter.
Helping to improve the profit picture were
lower selling and administrative expenses and
higher other operating income. The former
fell to $8 million in the current session from
$8.6 million in 2012. The latter advanced from
$1.35 million in 2012 to $2.73 million in the
On the other hand, administrative expenses
increased by 6.4 per cent to $7 million from
$6.6 million in the 2012 period.
These changes allowed NFM to report an
operating profit of $9.7 million for the current
period; this was $1.7 million less than the $11.4
million reported for the July to September
Financial expenses of $2 million in the cur-
rent period were 42.4 per cent lower than the
$3.5 million incurred for the 2012 period.
Meanwhile, tax expenses at $339k were $134k
more than the $205k spent last year. These
changes allowed NFM to report an after-tax
profit of $7.4 million for the 2013 period. This
figure was only marginally lower than the $7.7
million recorded for the 2012 session.
For the full nine-month period, NFM report-
ed a 4.7 per cent improvement in sales to
$337.7 million from $322.7 million in the com-
parative 2012 session. After-tax profit showed
an improvement of 14.6 per cent, moving from
$10.5 million in 2012 to the current period s
figure of $12.1 million.
We note that the third quarter s net profit
of $7.4 million represents 61 per cent of the
year-to-date profit figure.
The company s cash position deteriorated
from a negative balance of $96.7 million as at
year-end 2012 to a negative balance of $101.9
million as at September 2013. Part of this
change can be attributed to the dividend pay-
ment of $4.7 million.
On the positive side, loan principal and
interest payments show downward trends and
these changes augur well for the remainder
of the year.
West Indian Tobacco Company Ltd
For the three months to September 2013,
Witco reported revenue, net of excise taxes,
of $228.4 million; this was 5.3 per cent greater
than the $216.9 million generated for the com-
parative period in 2012. Its gross profit margin
grew by almost twice the rate of its sales
increase. In this case, the growth was 9.9 per
cent, moving from $155.3 million last year to
$170.7 million in the current quarter.
Administrative, distribution and other
expenses, net of other income, rose from $37.2
million in 2012 to $38.4 million in 2013. These
changes allowed Witco deliver a pre-tax profit
for the current quarter of $132.3 million; when
compared with the 2012 result of $118.1 million,
this represents an improvement of 12 per cent.
The effective tax rate decline from 27.2 per
cent in 2012 to 26.8 per cent this year. This
small but helpful reduction saw the company
deliver an after tax profit of $96.8 million in
the current period versus $86 million in the
prior session. This represents an increase of
12.4 per cent. The company s quarterly EPS
advanced to $1.15 from $1.02 in 2012. The div-
idend payment was enhanced to $1.07 from
$0.98 in the 2012 period.
On a year-to date basis, Witco s revenues,
net of excise taxes, have increased from $639.4
million in 2012 to $669.2 million, or by 4.6
Meanwhile, year-to-date net profits have
grown to $284.3 million from $254.1 million,
or by 11.9 per cent. In addition, dividends to
stockholders have risen from $2.60 in 2012 to
$2.93 in the current year.
Earlier this year, the company instituted a
price increase on its products. More recently,
it announced another price hike. This latter
increase will certainly help its fourth quarter
NOVEMBER 2013 • WEEK FOUR www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG15
Interim results for
Links Archive November 27th 2013 November 29th 2013 Navigation Previous Page Next Page