British American Tobacco Malaysia - BAT Malaysia continues growth momentum despite challenging landscape

Kuala Lumpur, 28 October 2021 – British American Tobacco (Malaysia) Berhad (BAT Malaysia) today announced its financial results for the third quarter ended 30 September 2021 (Q3FY2021).

Q3FY2021 Financial Highlights:
• Profit from operations for the quarter stood at RM108 million, a 1% increase versus the preceding quarter.
• Revenue for the quarter continued to grow for the third consecutive quarter and stood at RM613 million, a 3% increase versus the preceding quarter.
• The board of directors has declared a third interim ordinary dividend of 26.0 sen per share, amounting to RM74 million to be paid out on 25 November 2021 to shareholders.

Nedal Salem, Managing Director of BAT Malaysia, said,

“We are encouraged by our Q3FY2021 performance which marks our third consecutive quarter of financial growth. This growth momentum is a result of an increase in share of market and volume which improved our revenue and profit from operations.”

“Consumer affordability continues to remain under pressure due to the high tobacco tax rate with 57.9% of the market dominated by the black market.”

“To effectively manage the issue, the government must enhance enforcement, not increase excise, and address the price gap between legal and black market products.”

For the first nine months of the year, BAT Malaysia achieved a profit from operations of RM301 million, a 24% increase from the RM242 million recorded in the same period last year. This was primarily due to the company’s 7% growth in domestic volume, which outperformed the total legal industry recovery rate of 6%. The growth in volume led to a revenue growth of 7% compared with the same period last year.

Consistent with the volume growth trajectory, the company’s total market share stood at 52.5%, registering an increase of 1.0ppt compared with the same period last year.

BAT Malaysia’s portfolio grew in all segments with Dunhill growing by 2.1ppt in the Premium segment, Peter Stuyvesant and Pall Mall by 0.8ppt in the Aspirational Premium segment and Rothmans and KYO by 2.5ppt in the value-for-money (VFM) segment.

“For the last quarter of the year, we will continue our purpose to build A Better TomorrowTM. We also remain steadfast in our efforts to sustain the recovery of the legal cigarette market and advocate for the introduction of a regulatory framework for reduced-risk products such as nicotine vapour,” Salem concluded.

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For more information on British American Tobacco Malaysia’s financial results, please visit www.batmalaysia.com

About British American Tobacco (Malaysia) Berhad
British American Tobacco (Malaysia) Berhad is the leading tobacco company in Malaysia. This strong position is built upon a portfolio of high quality products designed to meet diverse consumer preferences. Our portfolio includes world- famous brands like DUNHILL, KENT, PETER STUYVESANT, PALL MALL and ROTHMANS. British American Tobacco (Malaysia) Berhad employs almost 500 employees who are involved in a wide spectrum of disciplines, from generating insights, developing brands and making these available on a national level. In addition, we also set leading edge talent development practices as well as ensure a strong foundation of corporate governance and shareholder relations. The company is part of the British American Tobacco group, which is the world’s most international tobacco group and the second largest stock market listed tobacco group by global market share.