KUALA LUMPUR: British American Tobacco (M) Bhd
(BAT Malaysia) will focus on expanding Dunhill in the premium segment, alongside other brands in its portfolio within the aspirational premium and value-for-money segments.
Managing director Nedal Salem said this is in tandem with the group’s strategic aim to deliver combustible value growth as part of its multicategory business.
The group is also encouraged by the progress made by law enforcement authorities where intensified enforcement actions have resulted in the incidence of the tobacco black market reducing from 56.4% in January 2024 to 54.3% in November 2024.
“We are encouraged by the intensified enforcement actions from the Royal Malaysian Customs Department in addressing the tobacco black market that has helped to reduce the incidence of tobacco black market in the country.
“While the incidence of tobacco black market has been on a declining trend, we encourage the Government to continue to focus its attention and resources to address the issue in 2025,” Salem said.
In the fourth quarter ended Dec 31, 2024, BAT Malaysia posted a higher net profit of RM49mil, or earnings per share of 17.10 sen compared with RM47.4mil, or 16.60 sen posted in the year-ago quarter.
Its revenue for the quarter rose 2.7% to RM653mil against RM635.8mil last year.
For the full financial year, BAT Malaysia posted a net profit of RM183.1mil, down 5.95% from RM194.7mil last year while revenue was flat at RM2.31bil.
The board of directors has declared a fourth interim dividend of 15 sen per ordinary share amounting to RM42.8mil, payable on March 6 to shareholders.
“Our financial performance was within expectations as the combustible business remains resilient despite the changing market trends. We are optimistic of the company’s prospects for 2025 backed by Dunhill, the No.1 brand in Malaysia, with 60 years presence as the top cigarette brand in the country,” Salem said.
Commenting on the Control of Smoking Products for Public Health Act 2024 and its related regulations (Act 852) that have taken effect with measures to be implemented in phases in 2025, he said: “We urge the Ministry of Health to continue to have open dialogues with the industry during this transition period to ensure the industry is clear on the guidelines and requirements in order to comply with the new regulations as well as ensuring there is no disruption to the market.”
