Group PBT was flat versus the same quarter last year due to higher promotion costs as well as timing differences of commercial expenses. Furthermore, trade partners delayed purchases to early April 2018 in anticipation of the announced price adjustment, which took effect on 15 April 2018.

Using data from the Malaysian Institute of Economic Research the Consumer Sentiment Index gained 8.4 points quarter-on-quarter to 91 in 1QFY18. The Company notes the strengthening consumer sentiment from this as a positive trend for 2018. Nevertheless, the index remains below the optimism threshold of 100 points, with economic and political uncertainties that accompany the General Election potentially a less favourable factor.

Furthermore, the Company continues to remain concerned over the threat of a significant contraband market.

“The existence of a large contraband market will continue to impact our business and the overall economy. That said we appreciate the Royal Malaysian Customs Department’s proactive stance to address the contraband issue in the country through stronger enforcement. Our support towards the relevant authorities remains steadfast, and we will continue to assist in all efforts to combat illegal trade through holistic initiatives that include education and outreach to both traders and consumers,” said Essaadi.