Image Credits - The Star
Lower earnings were announced by British American Tobacco (M) Bhd (BAT Malaysia) for the second quarter of 2024, which concluded on June 30. RM640.46 million was the company’s revenue for the same time the prior year, a 5.6% decrease from RM678.12 million. Furthermore, BAT Malaysia’s net profit decreased to RM36.28 million from a year earlier by 23.67%.
While acknowledging that the financial results met expectations, managing director Nedal Salem attributed the achievement to continued investments meant to grow the Vuse vaping brand in Malaysia, the corporation is still confident that these strategic expenditures will lead to sustained growth, even in the face of declining profitability.
BAT Malaysia is pushing the government to solve the issue of the significant prevalence of the black market for tobacco, which makes up around 54.8% of the country’s overall industry. In addition to the government’s increased enforcement measures, which are anticipated to be outlined in the upcoming Budget 2025, the business advises revising tax rules.
“Nonetheless, the group is encouraged by the intensified efforts from law enforcement agencies to enforce against the tobacco black market,” Salem said. BAT Malaysia urges the government to address the significant prevalence of the tobacco black market, which accounts for about 54.8% of Malaysia’s overall tobacco sector, in light of the present difficulties.
The company proposes that reviewing taxation policies could effectively complement the government’s intensified enforcement measures, which are anticipated to be outlined in the upcoming Budget 2025.
Additionally, BAT Malaysia declared a second interim ordinary dividend of RM34.2 million, or 12 sen per ordinary share. The payout date for the dividend is August 22, 2024. The company continues to focus on both addressing market challenges and pursuing growth opportunities through its investments in the vaping sector.