For the first three quarters of the 2023 financial year (FY2023), British American Tobacco recorded a 29.4% decrease in its profit of operations to RM217 million compared with RM307 million a year ago. Revenue stood at RM1.7 billion compared with RM1.8 billion a year ago, due to volume weakness experienced by the Group.
As for Q3, revenue came in at RM606 million down from RM660 million it recorded in 2022, profit for the period also dipped from RM75 million to RM59 million.
The Group said the drop was from its strategy of transitioning into a multicategory business by driving investment into its New Category business, which offers reduced-risk alternatives to adult smokers.
The Group saw a marginal dip in its overall market share of 0.5%, while volume declined by 9.4%. Although the industry’s Premium segment declined due to consumers downtrading, Dunhill remained strong, commanding above 60% share of the Premium segment. The Group’s Aspirational Premium (AP) brand, Peter Stuyvesant claimed an additional 1.1% of the segment share during this period.
During Q3FY2023, the Group said it undertook a modest price increase in its Premium and AP segments, prompted by rising inflation and increased cost of business. This necessary step marks the first time the Group has adjusted its prices since 2018.
Nedal Salem, Managing Director of BAT Malaysia, said, “Our financial results were within expectations given the current economic climate in which increased inflationary pressures have stretched consumers’ disposable income. Nevertheless, we are confident that our purpose to build A Better Tomorrow™ will drive long-term growth, backed by our New Category business.”
