KUALA LUMPUR (Nov 18): British American Tobacco (Malaysia) Bhd (KL:BAT) said it is raising the retail prices of its cigarette brands from Friday (Nov 21), following the two-sen-per-stick excise duty hike announced under Budget 2026.
The price revision, approved by the Health Ministry, will see Dunhill retail at RM18.20 per pack, up from RM17.40 currently. Benson & Hedges will be sold at RM18.40 per pack, Peter Stuyvesant at RM16.70, KYO at RM14, Rothmans at RM12.90 and Luckies at RM12.40.
BAT managing director Nedal Salem said the group viewed the tax adjustment as “a step in the right direction” given that the last increase was introduced a decade ago, though he highlighted that the industry continues to face pressure from illicit cigarette trade.
“We note that significant increases in cigarette prices have historically contributed to the expansion of the tobacco black market, which currently accounts for 54% of total cigarette consumption in Malaysia,” he said in a statement on Tuesday, adding that the illegal trade posed risks to public health and government revenue.
The latest price adjustment comes after BAT reported its weakest quarterly earnings on record, with net profit for the third quarter ended Sept 30, 2025 (3QFY2025) plunging nearly 90% to RM7.02 million.
Revenue halved to RM300.8 million, amid sharp volume declines triggered by new regulations requiring pictorial health warnings and a retail display ban.
For the first nine months of the year, BAT’s net profit fell 39.4% to RM81.24 million, while revenue contracted 25% to RM1.25 billion.
The group declared a sharply lower third interim dividend of five sen per share, compared with 22 sen per share a year earlier.
Malaysia last raised cigarette excise duties in 2015. The latest increase takes effect alongside a 10% hike in alcohol excise beginning Nov 1, as part of the government’s public health strategy under Budget 2026.
The budget also increased duties on cigars, cheroots and cigarillos by RM40 per kilogramme, as well as an additional RM20 per kilogramme tax on heated tobacco products.
Shares of BAT closed 11 sen or 2.42% lower at RM4.44 on Tuesday, giving the group a market capitalisation of RM1.27 billion. Year to date, the counter has fallen more than 40%.