On May 23, British American Tobacco Malaysia (BAT Malaysia) announced its financial results for the first quarter ended March 31, 2024 (Q1FY2024). Its report showed that thanks to its new e-cigarette brand Vuse, which was launched in the second half of last year, revenue in the quarter rose 5.6 percent from a year earlier to 412 million ringgit ($87.3 million), while net profit slid 34.46 percent from a year earlier to 46 million ringgit ($9.74 million). This was due to increased operating costs resulting from continued investments in the company's ongoing transition to a diversified business, as well as the impact of inflationary pressures and rising costs of e-cigarette products.

Highlights of the quarter include:

• Value-for-Money brand market share increased by 0.2% due to the positive performance of Luckies;
• Market share decreased by 0.3% quarter-on-quarter, mainly due to increased competition in the combustible tobacco market and the impact of price reduction trends;

The Board of Directors has declared a first interim dividend of 10 sen per ordinary share, totalling 28.6 million ringgit (US $6.06 million) to be paid to shareholders on June 20, 2024.

Nedal Salem, managing director of the company, said: "Our Q1 performance reflects an environment impacted by the growth of the illicit tobacco market and the shift of consumers from traditional tobacco to e-cigarettes."

"The Group remains optimistic that the resilience of domestic consumer spending and the recovery of exports will strengthen its financial performance in FY2024 as the Malaysian economy improves. The Group is also confident in its strategic transformation to provide risk-reducing alternatives through Vuse, which will drive its growth trajectory and enable its transformation into a multi-category business."

"Our goal is to build a better tomorrow while working to reduce the health impact of our business." To that end, we believe the Public Health Smoking Products Control Act of 2024 (Act 852) is the right step for the industry. However, the Group reiterates that any regulation introduced must be reasonable and evidence-based to ensure that it can be effectively enforced and achieve its intended objectives, while not fuelling the growth of a black market in tobacco or e-cigarettes."