JT International 4Q Net Profit Soars 573% Year-on-year to RM20M

Source from:  The Edge  02/26/2014

JT International Bhd said its net profit for fourth quarter to December 2013 soared 573% year-on-year to RM20.15 million, from RM2.99 million in similar quarter a year ago.

Revenue rose to RM330.83 million as compared with RM290.0 million for the same period last year.

Its profit was higher due to increased net margins and better product mix. In addition, a one-time restructuring charge of RM12.2 million was incurred in the same period last year.

"The increase in revenue was mainly attributed to higher cigarette prices, partially offset by a 4.7% decline in sales volume in the current quarter," said the tobacco company in a press statement.

For the year under review, the group achieved revenue of RM1273.3 million as compared with revenue of RM1234.3 million in 2012.

Total net profit stood at RM121.63 million, up from RM101.31 million.

"Despite facing significant external challenges, the group achieved a market share growth of 0.2 percentage points to 19.6% from 19.4% in the same period last year," said JT Interntional.

For 2014, JTI expects the operating environment to remain "extremely challenging", primarily due to the 14% excise increase in October 2013 and the continued prevalence of illegal cigarettes at 35.7% of the market.

In addition, consumption is expected to be affected by inflationary pressures and weak consumer sentiment. Enditem