KUALA LUMPUR (Feb 6): British American Tobacco (M) Bhd (KL:BAT) posted a 3.38% increase in net profit in the final quarter of 2024, on higher sales volume driven by year-end seasonal sales but offset by higher tax expenses.

Its net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024) increased to RM48.97 million from RM47.36 million a year earlier, on the back of a 2.7% rise in revenue to RM653.03 million versus RM635.96 million, according to the group’s bourse filing on Thursday.

During the quarter under review, the tobacco group’s tax expenses doubled to RM20 million from RM9.51 million in 4QFY2023.

BAT Malaysia declared a fourth interim dividend of 15 sen per share, payable on March 6. This brought total dividend payouts for the financial year ended Dec 31, 2024 (FY2024) to 59 sen per share, versus FY2023’s 63 sen per share.

Cumulatively, its net profit for the full year of FY2024 slipped 5.96% to RM183.14 million compared with RM194.75 million in FY2023, despite revenue rising marginally by 0.19% to RM2.32 billion versus RM2.31 billion.

BAT Malaysia attributed the lower earnings to reduced margins from its vapour products and a slight contraction within the combustible products. 

“Our financial performance was within expectations as the combustible business remains resilient despite the changing market trends,” BAT Malaysia managing director Nedal Salem said in a statement.

Looking forward, Nedal said BAT Malaysia will focus on growing Dunhill in the premium segment, along with other brands within the group’s portfolio in the aspirational premium and value-for-money segments.

“This is in tandem with the group’s strategic aim to deliver combustible value growth as part of our multicategory business,” he added.

BAT Malaysia also noted law enforcement authorities’ progress in intensifying enforcement actions against the tobacco black market, with incidences of the counterfeit goods dropping to 54.3% as at November 2024 from 56.4% in January 2024.

“We are encouraged by the intensified enforcement actions from the Royal Malaysian Customs Department in addressing the tobacco black market that has helped to reduce the incidences of tobacco black market in the country,” Nedal said.  

“While the incidence of tobacco black market has been on a declining trend, we encourage the government to continue to focus its attention and resources to address the issue in 2025,” he added.

Shares in BAT ended five sen or 0.68% lower at RM7.29, valuing the group at RM2.08 billion.