Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, Oct 28 — British American Tobacco (Malaysia) Bhd’s (BAT Malaysia) net profit fell to RM63.74 million in the third quarter ended Sept 30, 2020 (Q3 2020) from RM83.13 million in the same period last year.
Revenue, however, was higher at RM627.52 million against RM584.34 million previously.
The company has declared a third interim dividend of 21 sen per share totalling RM60 million, payable on November 25, 2020.
In a statement today, BAT Malaysia said it recorded a growth in Q3, outperforming the legal domestic industry, with a growth of 14 per cent compared with Q2, mainly due to Dunhill and KYO, its new brand in the Value-for-Money segment.
It said despite registering a positive quarter, the company’s year-to-date performance continued to be overshadowed by the growing tobacco and vaping black market.
The tobacco black market grew to 64.5 per cent during the quarter under review, despite the increase in enforcement activities this year.
“In response to this worrying trend, we launched an awareness campaign ‘Stop the Black Market’ seeking the views and opinions of Malaysians on this crisis,” said BAT Malaysia managing director Jonathan Reed.
“From the feedback received, we have found that Malaysians want urgent action to be taken against the tobacco black market. In fact, many would like to see the government adopt a holistic approach to solve the issue via increased enforcement initiatives and structural excise reform,” he said.
Reed added that Budget 2021 provides an excellent opportunity for the government to unite, demonstrate leadership, and collective will to address the problem by tabling broader solutions that include strategic policy changes and taxation reforms. — Bernama