Monday, November 21, 2011

JT International 3Q net profit rises 13.1% to RM39.75m

KUALA LUMPUR (Nov 21): JT INTERNATIONAL BHD [] net profit for the third quarter ended Sept 30, 2011 rose 13.1% to RM39.75 million from RM35.13 million a year earlier, driven mainly by higher net margins and lower marketing expenditures.

The company said on Monday that its revenue for the quarter increased 6% to RM334.86 million from RM315.95 million in 2010.

Earnings per share increased to 15.2 sen from 13.43 a year earlier, while net assets per share was RM1.67.

For the nine months ended Sept 30, JT International's net profit fell to RM104.74 million from RM106.46 million on the back of an increase in revenue to RM932.23 million from RM927.63 million in 2010.

Reviewing its performance, JT International said the increase in its revenues was attributed to higher cigarette prices offset partially by lower sales volume.

On its prospects, the company said it was encouraged by the government's approach of not increasing cigarette excise tax in the 2012 Budget in the light of the significant size and growth of the illegal cigarettes trade in Malaysia.

It said that whilst the legal tobacco industry volume, as measured by the Confederation of Malaysian Tobacco Manufacturers (CMTM), fell 3.0% in the first nine-months of 2011, the illegal trade of cigarettes increased to 37.3% in March-May 2011 compared with the annualised 36.3% in 2010.

JT International said that amidst the challenging environment, the company managed to maintain its market share at 19.8% in the first nine-months of 2011, compared to 19.7% during the same period last year.

'JT International Malaysia is committed to maintain its competitiveness through continued effective investment behind its Global Flagship Brands: Winston, Mild Seven and Camel.

'However, it is very unlikely that JT International Malaysia will be able to maintain last year's strong performance,' it said.

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