BAT to focus on flagship products to boost sales
Illustration shows BAT (British American Tobacco)
PETALING JAYA: British American Tobacco (M) Bhd (BAT Malaysia) will focus on its flagship products to boost sales and navigate the challenges of the tobacco black market.
In a joint statement in the company's annual report, chairman Tan Sri Aseh Che Mat and managing director Nedal Louay Salem said the company would deliver sustainable value for shareholders by focusing on its brands.
'In 2024, BAT Malaysia continued to solidify its leadership in the premium segment by building on Dunhill, our flagship premium brand with 60 years of presence in Malaysia, to maintain its leadership position in the segment.
'We also continued to build the Rothmans and Luckies brands by reinforcing its premium cues to increase its competitiveness within the value-for-money segment.'
Separately, Aseh and Salem said while the tobacco black market continues to pose a challenge to the legal industry, stabilising at approximately 55%, they noted that the Malaysian government has been intensifying enforcement action.
However, macroeconomic factors such as inflation and reduced disposable incomes persist in driving demand for smuggled products.
'We remain dedicated to work with law enforcement agencies to seek solutions to address the issue and support intensified enforcement efforts.'
For the financial year ended Dec 31, 2024 (FY24), BAT Malaysia's net profit dipped to RM183.14mil from RM194.75mil in the previous corresponding period, while revenue was flat at RM2.3bil.
In a filing with Bursa Malaysia on its FY24 performance, BAT Malaysia said the legal combustible industry experienced a 2% decline in volume for the year as compared to the previous year.
This, the company said, was despite the lower incidence of the tobacco black market by 0.6%, from 55.6% in FY23 to 55% in FY24.
'Combustible products continued to face challenges as consumer preference shifted to reduced-risk alternative products. The group achieved a 0.8% increase in volume as compared to the previous year, leading to a 0.2% increase in total revenue.'
BAT Malaysia said this was largely driven by the product portfolio strategy in place.
'Despite the group's continued efforts to actively manage and optimise operating expenses, the profit from operations declined by 0.8% to RM279mil, mainly impacted by lower margins associated with vapour products and the downtrading trend within the combustible industry.'
Going forward, BAT Malaysia said it considers 2025 to be a crucial year as the Control of Smoking Products for Public Health Act 2024 (Act 852) and its regulations will take effect in phases over the course of the year. 'The group is prepared to navigate these changes effectively,' it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
26 minutes ago
- The Sun
Malaysia seeks lower tariff rates for key sectors in US talks on June 18 -Tengku Zafrul
KUALA LUMPUR: Malaysia is seeking lower tariff rates for selected sectors under the United States' (US) 10 per cent minimum tariff, particularly for industries deemed critical to both economies, ahead of another round of negotiations in Washington on June 18. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the talks aim to secure fairer terms for Malaysian exporters affected by the new baseline tariff announced by the US administration. 'The US currently imposes a 24 per cent tariff on certain Malaysian exports. And of course, our first target is to reduce that rate. The second is to identify sectors that should ideally be subject to tariffs below 10 per cent. 'We need to consider sectors that are important to Malaysian exporters and also crucial to the US economy,' he told a press conference after launching the ASEAN Economic Community (AEC) Strategic Plan 2026–2030, here today. However, the specific sectors under negotiation were not disclosed. In April 2025, the US government announced new tariff measures affecting more than 60 countries, including Malaysia. The implementation of these tariffs has been temporarily paused for 90 days to allow room for negotiations.
The Sun
27 minutes ago
- The Sun
Malaysia seeks lower tariff rates for key sectors in US
KUALA LUMPUR: Malaysia is seeking lower tariff rates for selected sectors under the United States' (US) 10 per cent minimum tariff, particularly for industries deemed critical to both economies, ahead of another round of negotiations in Washington on June 18. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the talks aim to secure fairer terms for Malaysian exporters affected by the new baseline tariff announced by the US administration. 'The US currently imposes a 24 per cent tariff on certain Malaysian exports. And of course, our first target is to reduce that rate. The second is to identify sectors that should ideally be subject to tariffs below 10 per cent. 'We need to consider sectors that are important to Malaysian exporters and also crucial to the US economy,' he told a press conference after launching the ASEAN Economic Community (AEC) Strategic Plan 2026–2030, here today. However, the specific sectors under negotiation were not disclosed. In April 2025, the US government announced new tariff measures affecting more than 60 countries, including Malaysia. The implementation of these tariffs has been temporarily paused for 90 days to allow room for negotiations.
New Straits Times
an hour ago
- New Straits Times
HSBC Survey: Malaysian firms turn inward amid rising trade pressures
KUALA LUMPUR: Around 42 per cent of Malaysian businesses have shifted their focus to the domestic market, prioritising local customers and minimising exposure to global uncertainties, according to HSBC's 2025 Global Trade Pulse Survey. This strategic pivot reflects efforts by companies to mitigate the effects of tariffs and other trade-related challenges on their operations. Among the 250 Malaysian firms surveyed, more than half flagged rising costs from tariffs and trade barriers as a key concern. To address ongoing supply chain disruptions, 37 per cent have already increased inventory levels, while another 49 per cent plan to do the same, signalling a broader push towards strengthening supply chain resilience. Despite the global uncertainties, optimism about international growth remains high among Malaysian businesses but they need external strategic advice on the matter. 91 per cent of them expressed confidence in their ability to grow international trade, surpassing the global average of 89 per cent. Encouragingly, 73 per cent of respondents believe that trade uncertainty has prompted their businesses to evolve and seek new opportunities. Meanwhile, more than half are actively seeking strategic advice on international expansion, business restructuring or supply chain realignment. Considering current trade dynamics, 61 per cent of the local businesses are adapting their trade strategy to significantly increase connections with China, followed by South Asia (55 per cent) and North Asia (44 per cent). 32 per cent of them plan to trade more with Europe and the United States. HSBC Malaysia chief executive officer and head of banking Datuk Omar Siddiq said the businesses in Malaysia continue to show resilience and adaptability in navigating the challenges posed by the uncertain tariff and trade landscape. "While supply chains may be further reconfigured, there continues to be strong potential for local companies to leverage Malaysia's strong trade ties, particularly in Asia. "Having said that, it is key to note that markets like the US remain key trade destinations for Malaysia for high-value sectors such as electronics and semiconductors," he said in a statement. The survey also pointed out that while managing cost remains a top priority for Malaysian businesses amid global uncertainties, many are seizing the opportunity to innovate and adopt new technology to boost operational efficiencies. HSBC said 64 per cent of Malaysian businesses have adopted new technology or digital platforms, while 48 per cent have developed new products and services. Other growth opportunities that the businesses are considering include shifting their focus to domestic or regional growth (57 per cent) and improving their internal efficiencies or changing their cost structures (54 per cent). The survey also indicates that during the current period of trade disruption, Malaysian businesses find cash and liquidity management as the most helpful form of support in managing working capital (64 per cent), followed by improved payment terms with buyers and suppliers (56 per cent) and supply chain finance (55 per cent). "With over 70 per cent of Malaysian businesses anticipating sustained cost increases from the impact of tariffs and trade uncertainty on the cost of doing business and businesses facing an average 18 per cent drop in revenue, the imperative for strategic adaptation is clear." "Despite uncertainties, the world is also full of opportunities. Navigating this climate requires not only agility but strong partnerships to ensure sustained growth in a shifting global economy," Omar added.
