Challenging outlook seen for BAT earnings

HLIB Research said that despite the strong showing of BAT’s vape product, Vuse, contribution from this new segment will remain negligible in the early stage.

PETALING JAYA: The earnings outlook for British American Tobacco (M) Bhd (BAT) remains challenging over the medium term due to its lack of robust income streams from new segments amid pressure on its traditional combustible cigarette segment.

According to Hong Leong Investment Bank (HLIB) Research, despite the strong showing of BAT’s vape product, Vuse, contribution from this new segment will remain negligible in the early stage.