The tax man has taken a bigger bite out of the West India Biscuit Company Limited’s (WIBISCO) profits.
The manufacturer’s net income was $10.2 million when its 2024 financial year ended on August 31, down from $10.7 million in 2023.
The major reason for this is higher taxes. In its 2023 financial year WIBISCO paid $426 288 in tax on its income, this year the tax surged to about $2 million.
This is detailed in the company’s recentlypublished condensed statement of comprehensive income for the 2024 financial year.
Corporation tax, which is paid on profits, increased to nine per cent effective January 1 as part of Government’s effort to comply with the new global minimum tax. Corporation tax was previously levied at a rate of between one per cent and 5.5 per cent, having been reduced from 25 per cent in 2019.
In her report which accompanied WIBISCO’s financials, chairman Chloe Bermudez said that “for the financial year ending August 31, 2024, the company reported a revenue increase of $3.7 million, or five per cent, reaching $78.4 million”.
“This growth was seen in both local and export markets, with imported brands driving local performance. Export sales remain a vital part of the company’s success, with export revenues increasing by $1.5 million, or six per cent, over the prior year,” she said.
“We have successfully improved our gross margins and significantly strengthened our cash position, thanks to ongoing cost controls across the business. Net income before tax for the year rose by nine per cent compared to the previous period.”
Bermudez added: “During the year, the company installed new packaging
equipment on its cookie line, which is expected to enhance plant efficiencies as we continue to see year-on-year growth in exports.”
She said that WIBISCO “maintains a strong financial position as we remain committed to delivering value to all our stakeholders. Our balance sheet remains strong, evident by increased working capital and cash flow generation”.
“Looking ahead to 2025, the company will continue to focus on executing its strategic objectives to drive efficiencies across all sectors of the organisation,” the chairman stated.
“We have already improved our cybersecurity resilience, strengthened our health and safety culture, and launched our sustainability initiatives, all of which are aimed to further enhance the business.”
She concluded: “The West India Biscuit Company extends its gratitude to its staff, management, and customers for their dedication and commitment, which have greatly contributed to the company’s success.
“We remain dedicated to providing quality products to our customers and consumers locally, regionally, and internationally.” (SC)
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