BAT profit takes a hit

Future challenge: Stoel says BAT Malaysia’s future outlook will depend on what initiatives are implemented to reduce illegal cigarette consumption.

PETALING JAYA: British American Tobacco (M) Bhd’s (BAT) profit in the third quarter has taken a hit, plunging by about a third, from a host of competitive pressures.

The illegal cigarette market, persistent pressure on consumer spending power and competitive entries in the legal low-price segment drove BAT’s net profit in the third quarter ended Sept 30 down 32.7% to RM143.2mil from RM212.6mil a year ago. Revenue for the quarter declined 18.8% to RM757.3mil from RM932.1mil previously.