Latest news with #NedalSalem
Focus Malaysia
3 days ago
- Business
- Focus Malaysia
BAT Malaysia's solid 2Q FY2025 earnings spurs its long-awaited share price recovery
BRITISH American Tobacco (M) Bhd rebounded today (July 29) from a slew of poor earnings doldrums after Malaysia's only listed tobacco player chalked up a 40.4% surge in net profit to RM50.95 mil for its 2Q FY2025 ended June 30, 2025 (2Q FY2024: RM36.28 mil). At the close of today's mid-day trading, the counter emerged Bursa Malaysia's top gainer after surging 33 sen or 7.22% to close at RM4.90 with 790,400 shares traded, thus valuing the group at RM1.4 bil. Earlier in the morning, BAT Malaysia's share price had touched an intra-day high of RM5.05 prior to succumbing to profit taking. The DBL KLCI was up 0.67 points or 0.04% at the mid-day break despite earlier hitting an intra-day high of 1,537.62. Despite its improved net earnings, it has to be borne in mind that BAT Malaysia's 2Q FY2025 revenue retreated 2.45% to RM624.75 mil from RM640.46 mil. The latest quarterly profit pushed up BAT Malaysia's net earnings for the 1H FY2025 period by 12% to RM74.22 mil (1H FY2024: RM66.27 mil) but its revenue shrunk 10% to RM946.74 mil (1H FY2024: RM1.05 bil). The group declared a second interim ordinary dividend of 12 sen/share (2Q FY2024: 12 sen/share) amounting to RM34.3 mil which is payable on Sept 4. This brings the total dividend payout as of 1H FY2025 to 19.5 sen/share (1H FY2024: 22 ssen/share). Year-to-date (YTD), share of BAT Malaysia has fallen 34.3% (from RM7.46 on Jan 2) amid weak sales performance. 'Our 2Q FY2025 results demonstrate the resilience of our combustibles portfolio even in a highly competitive market environment, thus signalling that we're heading in the right strategic direction,' commented BAT Malaysia's managing director Nedal Salem. 'Dunhill continues to stand out as the leading brand in Malaysia, gaining further momentum this quarter. 'This leadership reflects not only the strength of our portfolio but also our unwavering commitment to stand out in quality, continuous innovation and brand heritage built over 60 years.' In a related development, Nedal farther revealed that Malaysia's tobacco black market also saw a decline of 0.4 percentage point at 54.4% in 2Q FY2025 from the previous quarter. 'This was largely contributed by the work done by the Royal Malaysians Customs Department, of which we continue to applaud their efforts in combating illicit trade in Malaysia,' he added. – July 29, 2025
The Star
3 days ago
- Business
- The Star
BAT Malaysia 2Q earnings up 40%
Illustration shows BAT (British American Tobacco) PETALING JAYA: British American Tobacco (M) Bhd (BAT Malaysia) is ready to navigate any new challenges from new laws and regulations that will be enacted this year. The company said 2025 will be a crucial time for it as the Control of Smoking Products for Public Health Act 2024 (Act 852) will take effect in phases during the year. There is also the new pictorial health warning and labelling requirements, as well as a retail display ban that will take effect on Oct 1, 2025, it said. Against this backdrop, BAT Malaysia said it remains focused on continuing to deliver its financial performance, driven by the strength of its combustibles portfolio and its leadership position in the premium segment through Dunhill. 'The group is committed to continually strengthening its combustibles portfolio by ensuring its products stand out in quality, innovation and brand heritage,' it said. Meanwhile, BAT Malaysia said the sales and service tax scope expansion and the targeted subsidy reforms are expected to temporarily weigh on consumer sentiment. However, it expects overall consumer spending to remain steady in the second half of 2025 due to policy easing, higher wages and increased tourism activity. In its latest financial results for the second quarter ended June 30, 2025 (2Q25), its net profit rose 40% year-on-year (y-o-y) to RM50.95mil as revenue declined by 2.45% to RM624.65mil. Basic earnings per share for the quarter rose y-o-y to 17.8 sen from 12.7 sen and it declared a dividend of 12 sen. 'Our second-quarter results demonstrate the resilience of our combustibles portfolio, even in a highly competitive market environment, signalling that we are heading in the right strategic direction,' managing director of BAT Malaysia Nedal Salem said in a statement. 'The tobacco black market also saw a decline of 0.4 percentage point at 54.4% in 2Q25, compared to the previous quarter. 'This was largely contributed by the work done by the Royal Malaysians Customs Department and we continue to applaud their efforts in combating illicit trade in Malaysia,' Nedal added.
The Star
4 days ago
- Business
- The Star
BAT Malaysia sees 2Q profit recovery on the back of combustibles segment
Illustration shows BAT (British American Tobacco) KUALA LUMPUR: British American Tobacco (Malaysia) Bhd's focus on its combustibles segment, particularly its flagship Dunhill brand, is yielding results as its second quarter results showed improvement over the previous corresponding quarter. According to the group, the strategic decision to transition out e-cigarette brand Vuse enabled more effective cost management and portfolio focus, which saw a 38.5% increase in profit from operations to RM78 million compared to RM56mil in the same period last year. In the quarter under review, BAT posted a net profit of RM50.95mil, up from RM36.28mil in the year-ago quarter. Earnings per share climbed to 17.8 sen from 12.7 sen previously. Its revenue dipped slightly to RM624.75mil in 2QFY25 from RM640.46mil in the comparative quarter. For the six-month period, BAT reported net profit of RM74.22mil against RM66.27mil in 1HFY24, while revenue dropped to RM946.74mil from RM1.05bil in the comparative period. The board of directors declared a second interim dividend of 12 sen per share, going ex on Aug 13, 2025, and payable on Sept 4, 2025, to shareholders. "Our second quarter results demonstrate the resilience of our combustibles portfolio, even in a highly competitive market environment, signalling that we are heading in the right strategic direction. 'Dunhill continues to stand out as the leading brand in Malaysia, gaining further momentum this quarter," said BAT Malaysia managing director Nedal Salem in a statement. He reported that the tobacco black market also saw a decline of 0.4 percentage point at 54.4% in 2QFY25, compared to the previous quarter.
The Star
30-05-2025
- Business
- The Star
BAT remains upbeat despite challenging 1Q performance
British American Tobacco (M) Bhd managing director Nedal Salem KUALA LUMPUR: British American Tobacco (M) Bhd remains upbeat on its outlook, backed by a resilient combustibles business and Dunhill's lead in the premium segment. 'We are confident that our financial performance in 2025 will strengthen as the group continues to focus on growing Dunhill's leadership in Malaysia as well as driving quality and sustainable growth in the premium, aspirational premium and value-for-money segments,' managing director Nedal Salem said in a statement. In the first quarter ended March 31 (1Q25), BAT posted a lower net profit of RM23.3mil, or earnings per share of 8.20 against RM29.9mil, or 10.50 sen in the year-ago quarter. Revenue for the quarter fell to RM321.9mil versus RM411.9mil a year ago. The board of directors has declared a first interim ordinary dividend of 7.5 sen per ordinary share, amounting to RM21.5mil, payable on July 3 to shareholders. Salem said BAT's financial performance for 1Q25 reflects the challenging operating landscape in Malaysia, citing the ongoing impact of the tobacco black market and weaker demand following the earlier start of Ramadhan. 'Despite the challenging operating landscape, the group's flagship brand, Dunhill, continued to demonstrate strength, recording a 0.7 percentage point growth in market share compared to the same period last year. This reflects Dunhill's strength as the No. 1 brand in the country with 60 years of presence in Malaysia,' he said, Commenting on the Control of Smoking Products for Public Health Act 2024 and its related regulations (Act 852) that have taken effect with measures to be implemented in phases in 2025, Salem said, 'We continue to view Act 852 as a crucial step in the right direction to regulate the tobacco and vapour industry in Malaysia. While 2025 will be a transitional year given the multiple measures that will take effect throughout the year, we are fully prepared to navigate the phased implementation of Act 852.' He added that while the industry remains affected by the tobacco black market, the group is encouraged by stronger enforcement efforts, particularly by the Royal Malaysian Customs Department, which have helped bring the black market incidence down from 56.4% in January 2024 to 54.8% in January 2025.
