On May 29th, British American Tobacco (Malaysia) reported their Q1 2023 financial results. The company's net profit for Q1 2023 was RM40.32 million (approximately RMB 62 million), a 22.8% decrease from the previous year's RM52.28 million (approximately RMB 80 million). The company's revenue also decreased by 25% to RM390 million (approximately RMB 600 million) from last year's RM520 million (approximately RMB 800 million). British American Tobacco attributed the decline to factors such as increased usage of e-cigarettes in Malaysia and growth of the illegal tobacco market.
However, it stated that all high-end cigarette products experienced growth. Its market share in the high-end market, such as Dunhill, increased by 0.4%; Lucky Strike grew by 2.7%; and Peter Stuyvesant grew by 5.3%.
British American Tobacco and American Tobacco have a market share of about 51.5% in Malaysia, a decrease of 0.4% compared to the previous year.
Nedal Salem, the Chairman of British American Tobacco (Malaysia), has expressed optimism regarding the company's outlook for 2023 despite economic challenges.
BAT Malaysia company will continue to drive the growth of their strategic brand in the high-end market.
He added that BAT Malaysia will continue to invest in tobacco heating products and is committed to providing low-risk tobacco alternatives to adult smokers.
Therefore, our objective is to further promote our tobacco heating product, glo.
British American Tobacco (Malaysia) expects that the tumultuous economic environment in the short term will put pressure on its financial performance. This has resulted in consumers turning to illicit tobacco products from legal ones.
We believe that the economy will improve, and at the same time, the government is considering introducing balanced regulations on electronic cigarettes and accelerating interventions to reduce the tobacco black market.
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BAT Malaysia's financial results for the first quarter have been negatively impacted by decreased sales volume stemming from an increased use of vaping products and an uptick in the tobacco black market.
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