KUALA LUMPUR: British American Tobacco (Malaysia) Bhd's (BAT Malaysia) net profit increased 2.3 per cent to RM73.25 million in the second quarter (Q2) ended June 30, 2022 from the RM71.62 million recorded in the same quarter a year ago.
Its revenue increased 6.9 per cent to RM637.46 million from RM595.79 million.
For the first half (1H), BAT Malaysia's net profit eased 6.8 per cent to RM125.54 million from RM134.73 million, while revenue decreased 0.3 per cent to RM1.159 billion from RM1.162 billion.
BAT Malaysia said its volume for 1H 2022 remained consistent with the 1H 2021 due to the dip in demand during the onset of the Omicron variant in Q1 of the financial year ended December 31, 2022 (FY22).
This was offset by gradual consumption recovery during the endemic phase in Q2 FY22.
The group's strategic brands, continued to show encouraging share performances.
Dunhill's share of premium segment grew by 0.9 percentage points (ppt) to 62 per cent, strengthening its market leadership position.
The group's Value-for-Money (VFM) brands grew by 0.7ppt to 34.9 per cent share of segment compared to the same period last year.
BAT Malaysia's share of Aspirational Premium segment contracted by 3.3ppt to 41.2 per cent as a result of the portfolio optimisation strategy in delisting Pall Mall during 1H 2022.
Managing director Nedal Salem said BAT Malaysia had maintained a steady performance for the 1H of this year, a clear indication that it was on the right path to enhance its prospects and maximise returns to shareholders.
"For 2H of the year, we will continue our focus towards building 'A Better Tomorrow', with an emphasis on reducing the health impact of our business.
"We are encouraged by the government's commitment to regulate the vape industry in Malaysia."
The company "strongly" urged the government to adopt policies that were evidence-based and data-driven, to ensure the over one million Malaysian vape users had access to reduced-risk products that are compliant with quality and safety standards.
"BAT Malaysia will strongly support any sensible, pragmatic regulations on vaping," he said in a statement today.
Meanwhile, Nedal said the government must also continue its push towards curbing the tobacco black market in Malaysia.
"The illegal cigarette trade currently commands around 60 per cent of the total market in Malaysia.
"Over the last five years, the government has already lost some RM25 billion in tax leakages to the illegal cigarette market.
"Smugglers are now being more creative in smuggling via small coastal jetties.
"BAT Malaysia urges the government to take effective enforcement actions to shut these channels down, whilst also addressing the affordability pressures faced by consumers," he added.
BAT Malaysia declared a second interim dividend of 25 sen per ordinary share amounting to RM71.38 million in respect of the financial year FY22.
The dividend will be paid on August 18, 2022.