BATI forecasts higher cigarette sales<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After posting a decline in sales in 2004, PT British American
\nTobacco Indonesia (BATI) expects to bounce back and enjoy higher
\ncigarette sales this year, in line with projected improvements in
\nthe country's tobacco market.<\/p>\n
\"I believe the tobacco market in Indonesia will continue to
\ngrow throughout 2005. This year's first quarter results indicate
\nthe increase will be somewhere between 5 percent and 10 percent,\"
\nsaid Ian Morton, the president director of BATI.<\/p>\n
Quoting a report from market research company ACNielsen,
\nMorton said cigarette sales in Indonesia increased 16 percent to
\n142.37 billion sticks in 2004 from 122.74 billion sticks in 2003.<\/p>\n
He did not provide specific projections for the company's
\nsales in 2005, but acknowledged that its sales in the first
\nquarter declined by 7 percent from the same period in 2004 due to
\nlosses in tsunami-devastated Aceh and the circulation of smuggled
\ncigarettes in the market.<\/p>\n
According to a report from BATI, the company's sales declined
\nin volume by 22 percent from 7.5 billion sticks in 2002 to 5.93
\nbillion sticks in 2003, and by 9 percent to 5.37 billion sticks
\nin 2004.<\/p>\n
In value, the company's sales declined by 3 percent to Rp 573
\nbillion (US$59.89 million) in 2004 from Rp 591 billion in 2003.<\/p>\n
BATI produces cigarettes under the Dunhill, Lucky Strike,
\nArdath, Commfil and Kansas brands. It has a 30 percent share of
\nthe country's non-clove cigarette market, or a 2.5 percent share
\nof the country's total tobacco market. In Aceh, it used to
\ncontrol 17 percent of the tobacco market before the Dec. 26
\ntsunami.<\/p>\n
Morton said due to the decrease in sales and the allocation of
\nRp 43 billion in a one-off restructuring expenditure resulting
\nfrom the closure of a factory in Malang, East Java, the company
\nsuffered a financial loss of Rp 18 billion in 2004, compared to a
\nnet profit of Rp 49 billion in 2003.<\/p>\n
On the acquisition of PT HM Sampoerna by Phillip Morris
\nIndonesia, Morton said it would not change BATI's business
\nstrategy in any way.<\/p>\n
\"I don't see any problem looking forward for BATI. Surely it
\nwill be interesting to see how they manage this huge resource.
\nThe impact on the market will only be known after the acquisition
\nis completed,\" he said.<\/p>\n
Morton said BATI had no plans to begin producing kretek
\n(clove) cigarettes.<\/p>",
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