Tobacco companies British American Tobacco Malaysia (BAT) and JT International (JTI) may post lower fourth-quarter net profits, due to weaker demand, analysts said.
The lower net profits would also be driven by a price war that has put margins under pressure.
BAT's fourth-quarter net profit could fall by 1.1 per cent to RM 141.2 million from the RM 142.75 million it reported in the same period a year ago, according to forecasts compiled by Reuters Estimates.
JTI's fourth-quarter net profit is expected to be 30 per cent lower at RM 3.46 million as against RM 4.92 million in the same period last year.
Both companies are due to release their numbers by the end of this month.
Malaysia's tobacco firms were engaged in a price war last year when Philip Morris launched Next in March, a cheaper brand. With Next in the picture, JTI slashed the retail price of Winston's pack of 20s by a tenth to RM 4.50. BAT cut its premium brand Dunhill 14s by 4 per cent to RM 4.50 during the same period.
For the most part of 2005, smokers were also introduced to various promotions which allowed them to buy two packs of cigarettes at a discounted price. (pi)