A slump in exports has cost The West India Biscuit Company Limited (WIBISCO) almost $2 million in profits. But chairman C. David Bynoe said efforts were on to put the problem, caused by a delayed Common External (CET) waiver for a key ingredient in its products, behind the long-standing manufacturer.
The spokesman also said WIBISCO was preparing to enter a contract with sister company Bermudez Biscuit Company Limited, an arrangement which meant a number of temporary jobs for Barbadians.
Bynoe made the statements in his report for the company’s 2012/2013 financial year, which ended on August 31 last year.
“The year under review – 2012/2013 – saw a marginal decline in revenues for WIBISCO compared to the previous year. This drop in revenue came as a result of a decline in sales in some key export markets. The year ended with a significant reduction in net income after tax of $1.9 million or 31 per cent of gross revenues,” Bynoe said.
“Our business results have been impacted this year when the Common External Tariff (CET) waiver on vegetable shortening was not renewed by the Customs and Excise Department.
After extensive consultations with Customs, government ministries and regional producers of shorting, the CET waiver application was approved.
“However, the company paid 40 per cent import duty for most of the year and the additional cost of sourcing major raw materials has resulted in WIBISCO’s exports becoming very uncompetitive.”
WIBISCO is one of Barbados’ oldest companies, 104 years in business this year, and the chairman said its focus in 2014 “will be on the rebuilding of the export markets as well as remaining competitive despite the prevailing economic conditions”.
At a time when job losses are the buzz words, the biscuit maker will also be providing some temporary jobs.
“During the coming year, the company will enter into a contract manufacturing arrangement with its sister company, Bermudez Biscuit Company Limited, to produce its flagship cracker, Crix, for a period of three months. This is a great opportunity for WIBISCO which will result in an increase in the staff complement for a three-shift operation during this period,” Bynoe announced.
Work will also continue “on complying with the requirements of the Food Safety And Modernization Act”, the official added. “The management team is focused on significantly improving our cost performance as well as raising our brands profile in the new year.” (SC)
