JTI Malaysia Net Profit up 5.2% in Q2

Source from:  The Sun Daily  08/27/2013

JT International Bhd's (JTI Malaysia) net profit increased 5.2% to RM30.9 million in the second quarter ended June 30 2013 compared to RM29.4 million a year earlier, driven by higher sales volume, increased net margins and better product mix.

Revenue increased to RM325.2 million from RM303.8 million due to a 1.8% increase in sales volume.

In a filing to Bursa Malaysia, JTI Malaysia announced an interim dividend of 11 sen a share, tax exempt under the single-tier system in respect of the financial year ending Dec 31 2013.

For the six month period ended June 30 2013, JTI Malaysia's net profit rose 5.3% to RM70.7 million from RM67.2 million supported by higher net margins and better product mix, offset partially by lower sales volume and higher marketing investments.

Revenue increased slightly to RM635.2 million from RM625.2 million, attributed to higher cigarette prices and better product mix, offset by a 2.7% declined in sales volume.

According to Nielsen Retail Audit report, the group achieved a stable market share of 19.7% in the first half of 2013 as compared to 19.5% achieved in the same period last year.

JTI Malaysia said Mild Seven (which has been renamed Mevius beginning May 2013) recorded an increase in market share of 0.1 percentage point, increasing its market share to 4.4% compared with 4.3% in 2012.

Winston, the leader in the Value segment, increased its market share to 10.0% from 9.7% in 2012 despite the continued impact of illegal cigarettes and the sales of cigarettes below the government mandated minimum price of RM7 per pack of 20 sticks cigarettes.

For the remainder of 2013, it said JTI Malaysia expects the operating environment to remain challenging due to the continued impact of certain local brands selling below the government mandated minimum cigarette price and the high prevalence of illegal cigarettes.

The incidence of illegal cigarettes remained high at 33.6% based on the results of the latest illegal cigarette study for the period March to May 2013.

JTI Malaysia hopes that the government will continue with its prudent and pragmatic approach to excise tax this year to further address the illegal cigarettes trade situation. Enditem