KUALA LUMPUR: British American Tobacco (Malaysia) Bhd net profit for the first quarter ended March 31, 2011 fell 6.95% to RM178.56 million from RM191.89 million a year earlier, on the back of lower volumes and a decline in profit from operations.
Revenue for the quarter declined to RM992.15 million from RM1.02 billion in 2010. Earnings per share was 62.50 sen while net assets per share was RM1.72.
BAT declared a first interim dividend of 60 sen per share, tax exempt under the single-tier tax system amounting to RM171.32 million in respect of the financial year ending Dec 31, 2011.
Reviewing its performance, BAT said on Thursday, April 21 that its volumes declined by 7.5% year-on-year in 1Q due to the steep excise increase in October 2010.
It said revenue declined by 2.6% as a result of lower volumes and unfavourable pack size mix with the ban on packs less than 20 sticks, which was partially offset by higher excise and pricing.
'The group's profit from operations only declined by 6.7% as the lower net turnover and higher packing costs for the Dunhill Reloc pack was partially offset by lower marketing expenditure due to absence of Dunhill Reloc launch activities and lower IT expenses,' it said.
On its prospects, BAT said its profit outlook for 2011 remains cautious given volume declines from steep excise increase, lower margins from the ban of packs less than 20 sticks and continuing high incidence of illicit trade.
'We remain committed to building long term shareholder value through our aligned strategic initiatives on growth, productivity, responsibility and winning organisation,' it said.
''
Revenue for the quarter declined to RM992.15 million from RM1.02 billion in 2010. Earnings per share was 62.50 sen while net assets per share was RM1.72.
BAT declared a first interim dividend of 60 sen per share, tax exempt under the single-tier tax system amounting to RM171.32 million in respect of the financial year ending Dec 31, 2011.
Reviewing its performance, BAT said on Thursday, April 21 that its volumes declined by 7.5% year-on-year in 1Q due to the steep excise increase in October 2010.
It said revenue declined by 2.6% as a result of lower volumes and unfavourable pack size mix with the ban on packs less than 20 sticks, which was partially offset by higher excise and pricing.
'The group's profit from operations only declined by 6.7% as the lower net turnover and higher packing costs for the Dunhill Reloc pack was partially offset by lower marketing expenditure due to absence of Dunhill Reloc launch activities and lower IT expenses,' it said.
On its prospects, BAT said its profit outlook for 2011 remains cautious given volume declines from steep excise increase, lower margins from the ban of packs less than 20 sticks and continuing high incidence of illicit trade.
'We remain committed to building long term shareholder value through our aligned strategic initiatives on growth, productivity, responsibility and winning organisation,' it said.
''
No comments:
Post a Comment