JT International 1Q profit rises 5% but revenue falls

Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 21 May 2013 17:27
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KUALA LUMPUR (May 21): JT INTERNATIONAL BHD [] posted a net
profit of RM39.7 million for the first quarter to end-March 2013,
registering a 5.3% increase over RM37.7 million netted in the first
quarter of 2012.
Revenue, however, fell to RM309.9 million from RM321.4 million.
“The decrease in revenues was attributed to a 7% decline in sales
volume in the current quarter compared to the same quarter last year,”
the company said.
But profit was driven higher by increased net margins and better
product mix offset partially by lower sales volume, it added in an
announcement.
JTI said it achieved a stable market share of 19.7% as compared to
19.8% achieved in the same period last year.
For the remainder of 2013, JTI Malaysia expects the operating
environment to “remain challenging” due to the continued impact of the
sale of some local brands selling below the government mandated
minimum cigarette price and the high prevalence of illegal cigarettes.
The group also anticipates several regulatory measures that had
previously been announced by the government to be implemented.