BAT Malaysia Pins Hopes on Dunhill to Reverse Sales Decline in SA Countries

BAT by 2FIRSTS.ai
Feb.07.2024
BAT Malaysia Pins Hopes on Dunhill to Reverse Sales Decline in SA Countries
British American Tobacco's Malaysian subsidiary hopes that the Vuse e-cigarette will boost sales in Southeast Asia.

British American Tobacco Malaysia is hopeful that its brand "Dunhill" cigarettes will help reverse the decline in sales in Southeast Asian countries.

 

Nedal Louay Salem, the General Manager of British American Tobacco (Malaysia) Company, has stated that a rule reform introduced last year has enabled the company to start selling the Vuse brand of e-cigarettes in Malaysia. This has doubled the potential market size for the tobacco company locally, leading to significant confidence in the Vuse brand.

 

During an interview with Dow Jones Newswires, Salim expressed his ambition, stating, "Our objective is to establish Vuse as the e-cigarette equivalent of Dunhill in the cigarette industry. Our aim is to become Malaysia's leading vape brand.

 

He stated that these efforts have laid the foundation for an increase in sales. "In 2024, our sales will definitely be better than in the past.

 

As the manufacturer of one of Malaysia's most popular cigarette brands, Dunhill, British American Tobacco is facing formidable challenges in the country. The increasingly intense competition from unregulated vape products and illicit tobacco products has significantly eroded the market share of traditional cigarettes.

 

For most of the past decade, the company has experienced a continuous decline in profits, with its stock price falling by approximately 76% over the past five years. This year, the company's stock price has further dropped by 2.1%, leading BAT Malaysia's market value to fall below $550 million.

 

Analysts predict that during BAT Malaysia's financial report release on Tuesday evening, its sales for 2023 are expected to reach MYR 2.36 billion (approximately USD 496.8 million), which is lower than MYR 2.6 billion in 2022 and MYR 2.64 billion in 2021.

 

Salim highlighted that in the short term, the company's bottom line may continue to face pressure due to its investment in the "right mix of channels" to gain market share in the smoking accessories industry, following the launch of Vuse in Malaysia last August.

 

It is crucial for BAT to increase the sales of Vuse to the level of its competitor Dunhill cigarettes. According to their 2022 annual report, British American Tobacco's Malaysian branch, Dunhill, holds a 32% market share in the Malaysian tobacco market, dominating 62% of the country's high-end market.

 

Simultaneously, the company plans to continue improving its traditional products. Salim mentioned that consumption of the affordable Luckies cigarettes, introduced by BAT last year, has experienced rapid growth, while inflation risks are high at this time, particularly with impending subsidy cuts and tax increases.

 

Salim stated that BAT has a series of new product plans to be launched in the next nine months. He further added that the expansion into the e-cigarette sector supports the company's intent to not delist or go private, which was previously speculated by market analysts in the case of prolonged decline in the company's stock price.

 

"We are facing tremendous opportunities," he stated. "This is where the company's focus should lie, rather than privatization."

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Imperial Brands Sees Double-Digit NGP Growth as Sixth Year of Tobacco Revenue Gains Backs £1.5 Billion Buyback
Imperial Brands Sees Double-Digit NGP Growth as Sixth Year of Tobacco Revenue Gains Backs £1.5 Billion Buyback
Imperial Brands reaffirmed its FY26 guidance in its October 8 pre-close trading update, forecasting double-digit net revenue growth in next-generation products and share gains across heated tobacco, vape and modern oral. Tobacco net revenue is expected to grow at a low-single-digit rate, marking a sixth consecutive year of growth. The company has completed its £1.45 billion FY26 share repurchase and announced a £1.5 billion buyback for FY27. Group adjusted operating profit is expected to increase 3% to 5%, while free cash flow is forecast to exceed £2.2 billion.
Oct.09
U.S. Judge Stays Helix, NJOY Challenge to FDA PMTA Rule Pending New Rulemaking Court Stays Altria's Helix, NJOY Challenge to PMTA Rule as FDA Prepares New Rulemaking
U.S. Judge Stays Helix, NJOY Challenge to FDA PMTA Rule Pending New Rulemaking Court Stays Altria's Helix, NJOY Challenge to PMTA Rule as FDA Prepares New Rulemaking
A federal judge in Texas on Oct. 8 granted a joint request by the FDA and plaintiffs including Altria subsidiaries Helix Innovations and NJOY to stay litigation challenging the agency's 2021 PMTA rule. The court cited FDA's anticipated rulemaking concerning the regulation at issue. FDA announced on Sept. 28 that it intends to reassess the PMTA framework and could initiate new rulemaking to replace it. The parties must file a joint status report within 45 days and every 45 days thereafter. A motion by three Reynolds American companies to intervene remains pending.
Regulations
Oct.10
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
U.S. Expands Illicit Vape Enforcement as ATF Brings PACT Act Powers Into Trade Fraud Task Force
The U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives said on September 23 that it has joined the interagency Trade Fraud Task Force to strengthen enforcement against illegal, misdeclared and smuggled vape and tobacco products. ATF will bring its authority under the Prevent All Cigarette Trafficking Act into the task force, including registration, reporting, shipping and record-inspection requirements covering interstate sales of electronic nicotine delivery systems. ATF said the move will strengthen its ability to trace illicit products from U.S. points of entry through domestic trafficking and distribution networks.
News
Sep.28 by 2Firsts Perspectives
Virginia Tobacco Retail Permit Takes Effect October 1, Covering Vapes as More Than 3,000 Businesses Apply in September
Virginia Tobacco Retail Permit Takes Effect October 1, Covering Vapes as More Than 3,000 Businesses Apply in September
Virginia's new retail tobacco permit system took effect October 1, requiring sellers of vapes, nicotine products and related devices and accessories to obtain a Retail Tobacco Permit for each business location. Virginia ABC said more than 3,000 businesses applied in September alone, creating a processing backlog. Qualifying applicants that filed before October 1 may temporarily operate under a Letter of Authorization. The new store-level permit also sits alongside Virginia's existing vape product directory, where sales of unlisted liquid nicotine or nicotine vapor products can trigger civil penalties starting at $5,000.
Regulations
Oct.03
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Smoke-Free Business Hits 42% of Q2 Net Revenue as PMI’s First TNFD Report Covers Single-Use Electronics, Critical Raw Materials and IQOS Repairs
Philip Morris International has published its first report aligned with the Taskforce on Nature-related Financial Disclosures, bringing its electronics supply chain and the use and end-of-life stages of smoke-free devices and consumables into its nature-related assessment. PMI said its smoke-free business accounted for about 42% of total net revenues in the second quarter of 2026. The report says non-circular electronic products, particularly single-use items, can increase consumption of limited natural resources and also details an IQOS repair pilot. A 2040 circularity scenario tests assumptions including a 50% reduction in product waste-related costs, 10% raw-material savings and a 25% substitution rate for refurbished products versus new products.
Sep.23
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
Kumulus Vape2026 H1 Revenue Falls 8.3% but Profit Rises 24% as B2B Weakens and Consumer Channels Grow
French vaping company Kumulus Vape reported first-half 2026 revenue of €25.5 million, down 8.3% year over year, as its core B2B distribution business fell 11% to €21.6 million. B2C and store-network revenue rose 5.6% and 17.8%, respectively. Commercial margin increased to 26.3% from 21.7%, while net profit rose 24.1% to €0.8 million. The company attributed the profitability improvement to catalog optimization, logistics restructuring and the ramp-up of Labster, its in-house production unit for proprietary brands.
Market
Sep.17 by 2Firsts Perspectives