By Timothy S. Donahue
Top Takeaways:
- BAT Malaysia’s Q3 net profit fell 89.5% to RM7 million as new regulations drove higher costs and operational disruptions.
- Revenue dropped 50.7% year-over-year to RM300 million, sending shares down 15.25% after the results were released.
- The company will phase out VUSE products by Q3 2025 to comply with Malaysia’s new smoking-product legislation.
British American Tobacco Malaysia (BAT Malaysia) reported an 89.5% drop in third-quarter net profit to RM7 million, down sharply from RM67 million (US$16 million) a year earlier, as new regulatory requirements resulted in higher costs and significant operational adjustments. Revenue decreased 50.7% to RM300 million, compared with RM609 million in the same quarter of 2024.
The company attributed the decline mainly to the rollout of new pictorial health warnings and a ban on retail displays, noting that complying with these measures required significant investment and caused disruptions to its business operations. After the earnings report, BAT Malaysia’s share price dropped 15.25% to RM4.78 by 11:47 a.m. on October 31.
Despite weak quarterly results, year-to-date revenue reached RM1.25 billion, driven by ongoing cost-saving initiatives. BAT stated that its premium Dunhill brand continued to strengthen its market position and remains the leading brand in Malaysia’s legal tobacco segment.
The board announced a third interim dividend totaling RM14.3 million, payable on December 5, 2025.
Managing Director Nedal Salem stated that the company remained resilient despite regulatory pressures and declining industry volumes, highlighting the stability of its core combustible-tobacco portfolio. He added that measures introduced under Malaysia’s Budget 2026 are expected to bolster household spending and enhance consumer purchasing power.
BAT Malaysia has also confirmed that it will phase out its VUSE e-cigarette product line by the third quarter of 2025, in compliance with the Public Health Control of Smoking Products Act 2014, which took effect on October 1, 2025.
