KUALA LUMPUR (May 6): British American Tobacco (Malaysia) Bhd (BAT Malaysia) is in the midst of looking for a new managing director (MD) to replace Stefano Clini, who stepped down from his post on May 3.

In a filing with Bursa Malaysia today, the tobacco manufacturer said Stefano's international assignment to BAT Malaysia has concluded and he will be returning to his home country.

"The formalities to appoint the new MD are underway and will be announced once these are completed," the country's largest tobacco company said.

"The board of directors extend their sincere appreciation to Stefano for his contributions and services rendered to the group and wish him the very best in his future undertakings," it added.

According to BAT Malaysia's website, Stefano was appointed as director of the company on May 1, 2013 and officially appointed as MD on July 1 that year.

Stefano worked for 15 years in Procter & Gamble before joining Heinz Italia S.p.A as president and chief executive officer in October 2005.

He joined the BAT Group in 2013. Since helming BAT Malaysia, the Malaysian Government has raised the tobacco excise duty twice — by 14% in 2013 and 36% last November.

BAT Malaysia posted its biggest drop in quarterly net profit in three years recently. Its net profit for the first quarter ended March 31 (1QFY16) fell 28.6% to RM172.61 million from RM241.74 million a year ago, mainly due to weak volume performance.

Revenue dropped 19.9% to RM1.02 billion from RM1.27 billion.

In March, BAT Malaysia announced that it was winding down its manufacturing business in stages with the shutdown of its facility in Petaling Jaya expected in the second half of 2017.

Following that, BAT Malaysia said it would be sourcing tobacco products for the domestic market from other BAT group factories regionally.

BAT Malaysia shares rebounded by RM4 or 9.3% to close at RM47 from its one-year low of RM43 recorded on May 6, for a market value of RM13.42 billion.