According to a report in The Star Malaysia on October 30, British American Tobacco (M) Bhd, reported a 21% year-on-year drop in net profit to RM59.5 million (CNY91.42 million) for the third quarter. The company plans to increase its market share for its e-cigarette product Vuse and tobacco heating product glo.
During the reporting period, the revenue of BAT declined to 606 million ringgit, a decrease from the previous year’s 667 million ringgit, while the earnings per share dropped from 26.40 sen to 20.90 sen (100 sen equals 1 ringgit).
BAT’s overall market share dipped slightly by 0.5%, while sales decreased by 9.4%. In the third quarter, BAT made a slight price adjustment to its premium and high-end products due to rising inflation rates and increased business costs.
The company stated, “This necessary step signifies the group’s first price adjustment since 2018.”
In the first nine months of 2023, the net profit of BAT decreased by 26.6% to RM147.4 million compared to the same period last year when it was RM200 million. Similarly, the revenue declined by 8.2% from RM1.82 billion to RM1.67 billion.
“In the third quarter, the company launched a limited edition Vuse Go (1500 puffs) and achieved positive commercial results. Following that, in October 2023, we introduced the Vuse Go (3000 puffs) e-cigarette with a wider range of tobacco flavors. We look forward to expanding the availability of Vuse Go to more nationwide retail outlets in the near future,” the announcement stated.
British American Tobacco has expressed its support for the Malaysian government’s continuous efforts to combat the tobacco black market, as it remains a significant concern.
British American Tobacco Malaysia stated that they believe the measures announced in the submission of the 2024 fiscal budget will effectively contribute to combatting the high instances of the tobacco black market. The company also supports the government’s decision to maintain the current level of consumption tax in order to prevent further growth of the tobacco black market.