BRITISH American Tobacco (Malaysia) Bhd reported its weakest quarterly performance in at least two decades, with net profit plunging 22.3% year-on-year to RM23.3 million for the three months ended March 31, 2025 (1Q25).
Revenue also dropped 22% to RM322 million, hit by a 20.6% fall in sales volume due to seasonal factors and an early Ramadan period.
While flagship brand Dunhill grew its market share by 0.7%, declines in other segments caused overall market share to slip by 0.6%.
Despite the volume decline, gross profit margin improved by 2.9% from a better product mix.
The group declared its lowest interim dividend in 20 years – 7.5 sen per share – amounting to RM21.5 million.
Quarter-on-quarter, net profit more than halved from RM49 million, with revenue also down from RM653 million.
Its MD Nedal Salem cited a tough environment, including the persistent tobacco black market.
Still, he remains optimistic about BAT’s performance for the rest of the year.
The company also announced it will phase out its Vuse vape products in Q3 ahead of new smoking product regulations set to take effect on Oct 1, 2025.
BAT Malaysia shares fell 4.1% to RM5.85 today, valuing the group at RM1.67 billion. –TMR
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