BAT Malay's third-quarter net profit fell 21 per cent, mainly expected to be due to declining revenues and lower sales. The company plans to increase market share by launching its e-cigarette product Vuse and tobacco heating product glo.
Electronic Cigarettes, Elf Bar, vape
British American Tobacco (M) Bhd, whose third-quarter net profit fell 21 per cent year-on-year to RM59.5 million (R91.42 million), plans to increase market share for its e-cigarette product, Vuse, and its tobacco heating product, glo, The Star Malaysia reported on 30 October.
During the reporting period, BAT's revenue slipped to RM606 million, down from RM667 million a year ago, while earnings per share slipped to 20.90 sen (100 sen to RM1) from 26.40 sen previously.
BAT's overall market share edged down by 0.5 per cent, while sales fell by 9.4 per cent. In the third quarter, BAT imposed a small price hike on its premium and desirable premium products due to higher inflation and increased costs of doing business.
The company said, "This necessary step marks the Group's first price adjustment since 2018."
For the first nine months of 2023, BAT's net profit was RM147.4 million, down 26.6 per cent from RM200 million in the same period last year, while revenue fell 8.2 per cent to RM1.67 billion from RM1.82 billion in the same period last year.
"During the third quarter, the Group launched the limited edition Vuse Go (1,500 ports). and achieved positive commercial results. Next, we launched Vuse Go (3,000
puffs) e-cigarettes in October 2023 with more diverse tobacco flavours. We look forward to expanding Vuse Go to more national outlets in the near future." The announcement said.
British American Tobacco said it was encouraged by the Malay government's ongoing efforts to combat the black market in tobacco, which remains a serious problem.
British American Tobacco Malay said, "We believe that the measures recently announced during the Budget 2024 presentation, once effectively implemented, will go a step further in tackling the high level of tobacco black market. The group also supports the Government's decision to maintain the current level of excise duty to avoid further fuelling the tobacco black market."
