Cigarette manufacturer badly hit by illicit market
Ranjit Singh | 08 Nov 2019 00:30
The biggest listed tobacco company in the country, British American Tobacco Bhd (BAT), suffered a huge decline in its 2019 third quarter (3Q19) profits and has announced that it will be reducing headcount.
JT International Bhd ( JTI), the second largest tobacco company which was delisted in 2014, was reported as saying in September that it may cut 40% of its staff over the next two years.
What has caused these companies to be affected adversely? The illicit cigarette market which constitutes 65% of the total cigarette market is the main cause.
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