E-cigarettes squeeze the market as BAT Malaysia’s Q1 revenue plunges 25%

According to Malaysian media reports on May 29, British American Tobacco (Malaysia) Berhad (BAT Malaysia) announced its financial results for the first quarter ending March 31, 2023.

Data shows that its net profit for the first quarter was 40.32 million ringgit, down from 52.28 million ringgit a year earlier; revenue fell 25% from 521.56 million ringgit a year ago to 390.23 million ringgit. The company reported earnings per share of 14.10 sen, compared to 18.30 sen last year.

Regarding the performance of the first quarter of 2023, BAT Malaysia stated that the decline in revenue was due to the increased use of e-cigarettes and the continued presence of the tobacco black market leading to a drop in sales.

BAT Malaysia stated that its high-end business product share, including Dunhill, grew by 0.4%, further solidifying its market leadership. Additionally, the Rothmans brand grew by 2.7%, and the premium brand Peter Stuyvesant grew by 5.3%. Overall, BAT Malaysia's total market share locally was 51.5%, a decrease of 0.4% compared to the first quarter of the 2022 fiscal year.

BAT Malaysia's Managing Director Nedal Salem stated that despite the economic headwinds, BAT Malaysia remains optimistic about its prospects for 2023. He also mentioned that the company is seeking to continue developing its heated tobacco product glo, reflecting its efforts to provide low-risk alternatives for adult smokers.