BAT Malaysia posts lower 2Q26 earnings


British American Tobacco (M) Bhd managing director Nedal Salem

PETALING JAYA: British American Tobacco (Malaysia) Bhd (BAT Malaysia) has posted a lower net profit of RM10.64mil for the second quarter ended June 30, 2026 (2Q26), compared with RM50.95mil in the previous corresponding period.

Revenue was also lower at RM515.29mil compared to RM624.75mil posted in the same quarter a year ago.

In a filing to the local stock exchange, the tobacco group said the decrease was mainly on the back of increased operating expenses associated with the implementation of the new route-to-Market (RTM) mode and macroeconomic pricing headwinds.

This, however, was partially offset by an increase in sales volume.

BAT Malaysia managing director, Nedal Salem, said the group will continue building operational efficiency as they advance towards gradual recovery with the new RTM.

Nedal also said despite the tobacco black market incidence falling to 56.2%, there was still a need to tackle this issue.

“Looking ahead, we remain committed to working with the relevant authorities to address illicit trade, while executing our strategic priorities, strengthening our core combustible brands - Dunhill, Rothmans and Peter Stuyvesant – and building a more resilient and sustainable business that delivers long-term value to our shareholders."

The group declared a second interim ordinary dividend of 5 sen per share for 2Q26 which is payable on Sept 28, 2026.

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