BAT's Lankan unit set to lose dominant position amid levies
Colombo
BRITISH American Tobacco plc's unit in Sri Lanka says it's poised to lose its dominant position in the market to leaf-rolled cigars made by small local rivals.
Ceylon Tobacco Co's profit margin will continue to narrow as an increase in levies on cigarettes prompts some smokers to switch to the cheaper alternative, said Emma Ridley, finance director of the Colombo-based BAT unit. The company's operating profit margin, the highest among listed Asian peers, narrowed to 64 per cent in 2016 from 67 per cent a year earlier in a cigarette market estimated at about US$1.1 billion.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Olam tops Louis Dreyfus’ offer for Australia’s Namoi Cotton as takeover battle heats up
Puma returns to sales growth in Americas despite ‘volatile’ market
Nanjing Xinjiekou Department Store announces May 23 EGM; Cordlife seeking legal advice
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
‘Limits’ to MOH intervention for Cordlife customer refunds, compensation: Janil
UG Healthcare fully acquires German associate company for 16.9 million euros