The recent developments at the West Indian Tobacco Company have caused quite a stir in the market. The unexpected placement of managing director, Raoul Glynn, on administrative leave with pay has led to an 11% decrease in the company’s share price since the news broke. This significant drop, from TT$9.99 to TT$8.90, has raised eyebrows and concerns among investors and stakeholders alike.
Here are some key points to consider in light of these recent events:
- The Trinidad and Tobago Securities and Exchange Commission (TTSEC) issued a notice about Glynn’s leave, citing an internal investigation as the reason. Hiram Murillo has been appointed as the acting managing director during this investigative period. The regulator did not disclose the specific details that prompted the probe, leaving many to speculate about the circumstances surrounding Glynn’s sudden departure.
- West Indian Tobacco’s share price has suffered a substantial 46% decline since April, when it reached a 52-week high of TT$16.50. Interestingly, Glynn is the only director at WITCO who holds shares in the company, owning a modest 0.002% of the total shares.
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Financially, the company has faced challenges as well. In the quarter ending March, WITCO reported a 40% decrease in revenue to TT$75 million, accompanied by a 60% decline in profit to TT$13 million. While this decline was expected due to ongoing inventory issues in overseas markets, it has undoubtedly added to the company’s current woes.
Looking back at the previous year, WITCO managed to make an annual profit of TT$277 million, showcasing a 15% improvement from the previous year. Despite the recent setbacks, Glynn expressed optimism in the 2023 annual report, emphasizing the company’s resilience and dedication to market recovery.
As the situation unfolds and investigations continue, it remains to be seen how West Indian Tobacco Company will navigate these turbulent waters and regain investor confidence. Stay tuned for updates on this developing story.
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