A Customs enforcement officer showing the seized illicit cigarettes of various brands at a grocery shop in Taman Alma Jaya, Bukit Mertajam.STAR PIC BY : ZAINUDIN AHAD / 20 March 2014 / Reporter: Tan Sin Chow.
This was on the back of the group raising its selling prices for its premium brands and value-for-money segments by 23.5% and 26.0%, respectively.
“This could also lead to a spike in illicit trade volumes, which stand at 51.2% (4Q16).
“Based on our estimates, a 5% decline in BAT’s sales volume is estimated to negatively affect our FY17-19F earnings estimates by 5.2%.
“This is assuming that the net increase in average selling prices is equivalent to the quantum of excise duty hike. Pending an official announcement on this matter, we hold off from making changes to our earnings estimates,” it said.
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