TTM Urged to Explore Partnerships

Source from:  tr.itsmyiq.com Mar 15, 2008 03/17/2008

Annual profits for the Thailand Tobacco Monopoly are expected to fall by more than half to THB2 billion within five years due to competition from foreign producers and declines in cigarette smoking, reports The Bangkok Post. The decline comes despite the significant tax advantages TTM enjoys over foreign imports. In 2007, the company posted net profits of THB4.5 billion on sales of 30.9 billion cigarettes. The market share of foreign brands has increased by around 1 percent annually over the past several years to 25 percent, according to Pradit Pataraprasit, a deputy finance minister. Declining rates of smoking and depreciation charges on machinery upgrades would further affect profitsover the next several years, he added. Pataraprasit suggested the TTM explore production partnerships with major international cigarette producers. He said the Finance Ministry had no plans to list the state enterprise on the Stock Exchange of Thailand, in light of the government's ongoing campaign against cigarette smoking. Enditem