WIBISCO fears salt tax, tariffs war

The chairman of a local food manufacturer is warning that government’s 20 per cent salt tax and the upheaval caused by the tariff war could pose a serious threat to the company’s bottom line.

This was revealed in the half-year results for West India Biscuit Company Ltd (WIBISCO) which reported a drop in after-tax profit, though the century-old Bridgetown bakery registered an increase in revenue during the first half of the company’s financial year.

WIBISCO, a publicly listed company on the Barbados Stock Exchange, recently published its unaudited condensed financial statements for the six-months period ending February 28, 2025 showing the decline.

In her Chairman’s Report which accompanied the financials, Chloe Bermudez attributed the revenue drop to “challenges following the installation of new packaging equipment and the increase in the corporation tax rate”.

Bermudez conceded that WIBISCO “continues to face several challenges” in the local and international markets despite some gains.

She explained: “The potential increase in global tariffs poses a risk to our supply chain, the impact of which remains uncertain. In addition, the proposed 20 per cent excise tax on salty snacks in Barbados will certainly impact some areas of our business.

“Despite these challenges, we remain optimistic about our future and are committed to finding solutions to mitigate these risks.”

Commenting on the revenue boost for the half-year review period, Bermudez said it reached $40.51 million, which marked a 4.6 per cent increase over the corresponding previous year’s level of $38.71 million.

The WIBISCO chairman told shareholders the revenue growth was fuelled by increased performances in the export and local markets, with exports increasing by 3.5 per cent, while local sales grew by 5.3 per cent.

In further comments on the performance of the company which is controlled by the Trinidad-based regional biscuit giant Bermudez, the chairman noted: “Net income after tax for the first half year stood at 44.9 million, compared to $5.9 million in the prior year . . . . We faced unforeseen technical and associated issues during the installation and commissioning of the new equipment, leading to increased costs and reduced efficiencies. However, during the second quarter, the team resolved many of these issues, and we can now report significant improvements in the performance of the equipment.”

WIBISCO is one of the oldest commercial bakeries in the Caribbean. Its origins trace back to 1850, when biscuit baking began with the establishment of The Barbados Biscuit Company. WIBISCO itself was founded in 1910 and later merged with The Barbados Biscuit Company.

(IMC1)