{
    "success": true,
    "data": {
        "id": 1357099,
        "msgid": "bat-forecasts-gloomy-business-ahead-1447893297",
        "date": "2003-05-07 00:00:00",
        "title": "BAT forecasts gloomy business ahead",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "BAT forecasts gloomy business ahead Rendi A. Witular, The Jakarta Post, Jakarta Cigarette and tobacco producer PT British American Tobacco (BAT) Indonesia said that sales in 2003 would remain weak due to a higher excise rate and weak consumer demand. \"This year will be another challenging year, with the company reinvesting in the business to contain the decline in volume, which will impact our profitability in the short term,\" BAT Indonesia president Frederick W.C.",
        "content": "<p>BAT forecasts gloomy business ahead<\/p>\n<p>Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n<p>Cigarette and tobacco producer PT British American Tobacco (BAT)<br>\nIndonesia said that sales in 2003 would remain weak due to a<br>\nhigher excise rate and weak consumer demand.<\/p>\n<p>\"This year will be another challenging year, with the company<br>\nreinvesting in the business to contain the decline in volume,<br>\nwhich will impact our profitability in the short term,\" BAT<br>\nIndonesia president Frederick W.C. Combe told reporters on<br>\nTuesday.<\/p>\n<p>The government revised in January the excise rate for Class I<br>\nwhite cigarettes to between Rp 50 to Rp 75 per stick, and set the<br>\nminimum price of cigarettes at Rp 250 per stick. The policy is<br>\naimed to meet this year's excise revenue target of Rp 27.9<br>\ntrillion.<\/p>\n<p>Cigarette companies under the Class I category have an<br>\ninstalled production capacity of more than 2 billion sticks of<br>\ncigarettes per year.<\/p>\n<p>Analysts have said that the higher excise tariff would weaken<br>\ndemand, as consumers' purchasing power had been weakened by the<br>\nslow recovery in the country's economy.<\/p>\n<p>BAT Indonesia's audited 2002 financial report shows that the<br>\ncompany suffered a slowing sales volume, with sales for 2002<br>\nfalling to Rp 688 billion from Rp 713 billion in 2001, and total<br>\ncigarette sales at 7.5 billion sticks, a drop from 9.4 billion in<br>\n2001.<\/p>\n<p>Thanks to an increase in price margin and improved efficiency,<br>\nhowever, BAT Indonesia still managed to enjoy a slight increase<br>\nin its net profit, from Rp 113 billion in 2001 to Rp 118 billion<br>\nin 2002, and disbursed a dividend of Rp 200 per share.<\/p>\n<p>To anticipate a difficult year, BAT Indonesia launched a<br>\nrestructuring program in January, including cutting 15 percent of<br>\nits workforce, or about 130 employees.<\/p>\n<p>The company will also focus on increasing its tobacco leaf<br>\nexport to 11,200 tons, expecting to net around US$17 million.<\/p>\n<p>BAT Indonesia's first quarter earnings plunged by 28 percent<br>\nto Rp 20.9 billion from Rp 29.4 billion in the same period last<br>\nyear.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bat-forecasts-gloomy-business-ahead-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}