BAT profits continue to decline in 2017

Friday, April 21, 2017

British American Tobacco (M) Bhd (BAT) saw its net profit slump year-on-year (YoY) by 33.8% to RM114.23 million for its first-quarter ended March 31, 2017 (1Q17), due to a decline in sales volume, coupled with the rising illegal cigarette trade. 

BAT told Bursa Malaysia yesterday, domestic and duty free volume declined 23% YoY, while revenue tumbled by 24.4% to RM770.72 million over the same period. 

The group noted that illicit cigarette incidence rose to an all-time high to 57.1% last year, due to the sizeable price gap between legal and illegal cigarettes, following the excise hike in November 2015, and overall economic pressure weighing on consumer spending. 

BAT’s winding-down of its Petaling Jaya factory announced in March last year also incurred a one-off restructuring expense of RM1.6 million, which was recognised in 1Q17. 

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