KUALA LUMPUR: British American Tobacco (Malaysia) Berhad today announced its financial results for the third quarter ended Sept 30, 2025.
The period was marked by significant regulatory developments, including the implementation of new Pictorial Health Warnings and Retail Display Ban, which required substantial preparation and investment to ensure full compliance. This led to a 2.5% decline in the legal industry combustible volume.
In line with this challenging climate and BAT Malaysia’s transition out of Vuse in the vape segment, the Group’s shipment volume declined by 21%. However, the Group’s proactive cost management helped cushion this impact, resulting in a cumulative revenue of RM1.25 billion for the year-to-date.
Despite the challenging operating environment, the Group’s Premium brand, Dunhill continues to gain a market share of 0.2ppt, reinforcing the brand’s strength and the Group’s continued leadership in the legal market. In addition, operating expenses for the quarter reduced by 12.3% compared to the preceding quarter due to the Group’s cost optimisation efforts.
The Board of Directors has declared a third interim ordinary dividend of 5.0 sen per ordinary share amounting to RM14.3 million, payable on Dec 5, 2025.
Managing director Nedal Salem said, “Our performance reflects the resilience of our core combustible portfolio, especially Dunhill which has continued to expand its market
share over the past 9 months. Despite the regulatory changes and overall market volume pressures, our disciplined approach to cost management and operational efficiency enabled us to safeguard profitability and maintain stability in our financial performance. Looking ahead, we are encouraged by the targeted fiscal initiatives announced under Budget 2026, which are expected to boost disposable
income and support household consumption. We remain focused on strengthening our
fundamentals, optimising our portfolio and executing with discipline to ensure long-term sustainability.”
Following the tabling of Budget 2026, the Government announced an excise duty increase of RM0.02 per stick, effective Nov 1, 2025. While the full impact is still being assessed, BAT Malaysia hopes that this will not further exacerbate the illegal tobacco trade and the Government will continue its commitment to address this illegal trade, which continues to account for around 54% of total consumption.
“The Government’s allocation of over RM700 million to strengthen enforcement and
digitalisation, including initiatives such as digital tax stamps and enhanced screening systems, are positive measures towards curbing tax leakages. With stronger enforcement, we see potential for a gradual recovery in legal market volumes. BAT Malaysia remains committed to supporting efforts to combat the tobacco black market and encourages continued industry engagement to ensure practical, effective, and sustainable outcomes,” Nedal said.
