Latest news with #BATMalaysia
Focus Malaysia
2 days ago
- Business
- Focus Malaysia
BAT Malaysia's solid 2Q FY2025 earnings spurs its long-awaited share price recovery
BRITISH American Tobacco (M) Bhd rebounded today (July 29) from a slew of poor earnings doldrums after Malaysia's only listed tobacco player chalked up a 40.4% surge in net profit to RM50.95 mil for its 2Q FY2025 ended June 30, 2025 (2Q FY2024: RM36.28 mil). At the close of today's mid-day trading, the counter emerged Bursa Malaysia's top gainer after surging 33 sen or 7.22% to close at RM4.90 with 790,400 shares traded, thus valuing the group at RM1.4 bil. Earlier in the morning, BAT Malaysia's share price had touched an intra-day high of RM5.05 prior to succumbing to profit taking. The DBL KLCI was up 0.67 points or 0.04% at the mid-day break despite earlier hitting an intra-day high of 1,537.62. Despite its improved net earnings, it has to be borne in mind that BAT Malaysia's 2Q FY2025 revenue retreated 2.45% to RM624.75 mil from RM640.46 mil. The latest quarterly profit pushed up BAT Malaysia's net earnings for the 1H FY2025 period by 12% to RM74.22 mil (1H FY2024: RM66.27 mil) but its revenue shrunk 10% to RM946.74 mil (1H FY2024: RM1.05 bil). The group declared a second interim ordinary dividend of 12 sen/share (2Q FY2024: 12 sen/share) amounting to RM34.3 mil which is payable on Sept 4. This brings the total dividend payout as of 1H FY2025 to 19.5 sen/share (1H FY2024: 22 ssen/share). Year-to-date (YTD), share of BAT Malaysia has fallen 34.3% (from RM7.46 on Jan 2) amid weak sales performance. 'Our 2Q FY2025 results demonstrate the resilience of our combustibles portfolio even in a highly competitive market environment, thus signalling that we're heading in the right strategic direction,' commented BAT Malaysia's managing director Nedal Salem. 'Dunhill continues to stand out as the leading brand in Malaysia, gaining further momentum this quarter. 'This leadership reflects not only the strength of our portfolio but also our unwavering commitment to stand out in quality, continuous innovation and brand heritage built over 60 years.' In a related development, Nedal farther revealed that Malaysia's tobacco black market also saw a decline of 0.4 percentage point at 54.4% in 2Q FY2025 from the previous quarter. 'This was largely contributed by the work done by the Royal Malaysians Customs Department, of which we continue to applaud their efforts in combating illicit trade in Malaysia,' he added. – July 29, 2025
The Star
2 days ago
- Business
- The Star
BAT Malaysia 2Q earnings up 40%
Illustration shows BAT (British American Tobacco) PETALING JAYA: British American Tobacco (M) Bhd (BAT Malaysia) is ready to navigate any new challenges from new laws and regulations that will be enacted this year. The company said 2025 will be a crucial time for it as the Control of Smoking Products for Public Health Act 2024 (Act 852) will take effect in phases during the year. There is also the new pictorial health warning and labelling requirements, as well as a retail display ban that will take effect on Oct 1, 2025, it said. Against this backdrop, BAT Malaysia said it remains focused on continuing to deliver its financial performance, driven by the strength of its combustibles portfolio and its leadership position in the premium segment through Dunhill. 'The group is committed to continually strengthening its combustibles portfolio by ensuring its products stand out in quality, innovation and brand heritage,' it said. Meanwhile, BAT Malaysia said the sales and service tax scope expansion and the targeted subsidy reforms are expected to temporarily weigh on consumer sentiment. However, it expects overall consumer spending to remain steady in the second half of 2025 due to policy easing, higher wages and increased tourism activity. In its latest financial results for the second quarter ended June 30, 2025 (2Q25), its net profit rose 40% year-on-year (y-o-y) to RM50.95mil as revenue declined by 2.45% to RM624.65mil. Basic earnings per share for the quarter rose y-o-y to 17.8 sen from 12.7 sen and it declared a dividend of 12 sen. 'Our second-quarter results demonstrate the resilience of our combustibles portfolio, even in a highly competitive market environment, signalling that we are heading in the right strategic direction,' managing director of BAT Malaysia Nedal Salem said in a statement. 'The tobacco black market also saw a decline of 0.4 percentage point at 54.4% in 2Q25, compared to the previous quarter. 'This was largely contributed by the work done by the Royal Malaysians Customs Department and we continue to applaud their efforts in combating illicit trade in Malaysia,' Nedal added.
BusinessToday
03-06-2025
- Business
- BusinessToday
BAT Malaysia's 1Q PAT Drops 20%, Revenue Down To RM322 Million
For the quarter under review, BAT Malaysia recorded a revenue of RM322 million, 21.8% lower compared to the same period last year. While profit from operations declined by 15.7% to RM39 million, the Group's gross profit margin rose by 2.9%, supported by a more effective portfolio mix strategy. However, its profit after tax dropped from RM29 million to RM23 million, Despite the Group experiencing softened demand due to seasonality factors and the early start of the Ramadhan fasting period in 2025, which saw a 20.6% decline in the Group's volume, the Group's flagship brand, Dunhill grew its market share and continued to strengthen its leadership position. The Board of Directors has declared a first interim ordinary dividend of 7.5 sen per ordinary share amounting to RM21.5 million, payable on 3 July 2025 to shareholders. The group said that despite the challenging operating landscape, the Group's flagship brand, Dunhill, continued to demonstrate strength, recording a 0.7 percentage point growth in market share compared to the same period last year. Related
The Star
12-05-2025
- Business
- The Star
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.
