British American Tobacco Malaysia - BAT Malaysia Navigates Regulatory Headwinds, Delivers Stronger FY2025 Performance

Kuala Lumpur, 7 May 2026 – At its 65th Annual General Meeting (AGM) today, British American Tobacco (Malaysia) Berhad (BAT Malaysia or the Group) reported that profit from operations increased by 9% in FY2025 compared to the previous financial year, reflecting disciplined cost management and a continued focus on its combustible portfolio. 

In FY2025, the Group navigated a challenging operating environment marked by tighter vapour regulations, higher tobacco excise duties, the implementation of the Retail Display Ban and updated pictorial health warnings. Despite these headwinds, BAT Malaysia delivered a resilient performance driven by rigorous cost optimisation and sharpened focus on its core combustible business.

Key AGM highlights include:

• Revenue was recorded at RM2,184 million, a 5% reduction compared to previous year on the back of regulatory developments, high illicit incidence and affordability pressures.
• Despite the pressures, net profit grew by 11% year-on-year, underpinned by disciplined cost management.
• The Group continued to deliver sustainable value to shareholders, maintaining a robust dividend payout of 90% of total earnings. For FY2025, the dividend was increased to 63.50 sen, up from 59 sen in the previous year.
• In FY2025, the Group noted a marginal decline in the tobacco black market from 55% in 2024 to 54.4% in 2025 attributable to enforcement efforts.

Nedal Salem, Managing Director of BAT Malaysia said that “our unwavering focus remains on our key brands, with Dunhill leading Malaysia’s premium category, and Peter Stuyvesant and Rothmans delivering across other important segments. We are sharpening our brand strategies to invest in products with the greatest potential for long-term, sustainable returns, ensuring BAT Malaysia remains competitive, adaptable and a consistent creator of shareholder value.”

“The Group also continues to face external pressures with the tobacco black market remaining the single largest challenge facing the industry, accounting for almost 55% of total market volume.

“Enforcement agencies have made notable progress in tackling the tobacco black market, resulting in a marginal decline in illegal volumes. While these achievements demonstrate the impact of coordinated action, more needs to be done from a strategic perspective to fully restore market integrity. The Group stands ready to work with authorities and policymakers to strengthen the legal market and safeguard tax revenue for the country.”

“Looking ahead, we continue to focus on disciplined execution, stronger brand prioritisation and enhanced route-to-market capabilities which gives us confidence in our ability to navigate ongoing challenges and deliver sustainable value for our shareholders,” Mr Salem concluded.

For more information, visit the BAT Malaysia Annual Report microsite or download a copy of the Annual Report.