KUALA LUMPUR, May 28 ― Tobacco maker JTI Malaysia Bhd, which was 60.37 per cent owned by Japan Tobacco Inc, posted a pre-tax profit of RM55.1million for the first quarter this year, inching up from RM53.4 million a year ago.
“Higher net margins were offset partially by lower sales volume, unfavourable product mix, higher marketing investments and higher operating expenditures,” it said in a statement today.
Revenue rose to RM345.9 million, from RM309.9 million previously, on the back of higher cigarette prices, but was offset partially by a 6.4 per cent decline in sales volume.
JTI Malaysia expected the operating environment this year to remain extremely challenging, driven by the 14 per cent cigarettes price increase since October 2013, and the continued high prevalence of illegal cigarettes in the market.
“In an environment of continued inflationary pressures and weak consumer sentiment, the group’s outlook will highly depend on the efforts of all law enforcement agencies to reduce illegal cigarettes,” it said. ― Bernama
