<p>BAT’s profit Has Been Affected by Nov 2015 excise hike – Business News</p>

BAT’s profit Has Been Affected by Nov 2015 excise hike – Business News

KUALA LUMPUR: British American Tobacco (M) Bhd (BAT) published a profit attributable to shareholders of RM212.63mil to the next quarter ended Sept 30, down 17 percent from a year earlier.

Revenue meanwhile dipped 20% to RM932.9mil. Merchant and the cigarette maker informed Bursa Malaysia.

For the nine-month period, its profit fell 40 percent to RM432.95mil due in part to this RM86mil supply for restructuring expenditures made from the next quarter in connection to the winding from its factory operations.

BAT also noted the September 2016 year so far, total lawful national market underwent a volume contraction of 28.6 percent versus the same period of this past year, largely driven by the steep abrupt increase in November this past year.

“However, slower rate of decrease has been seen within the legal industry in recent months. As a result of this market evolution, during exactly the same period, the group’s national and duty-free volumes declined 30% when compared to the identical period of this past year,” BAT said.

Its contract manufacturing business fell by 41.9 percent versus the same period of the year (cigarettes and non-cigarettes). This was largely driven by reduced volumes across all markets i.e. Australia, South Korea, the Philippines, Singapore, South Korea, Japan and Taiwan markets,” it stated.

As of August year so far, the team enrolled 58.1 percent share in the overall legal marketplace, a fall of 2.8 percent versus full year 2015. This decrease has been attributed to the trading dynamics in the marketplace after the excise driven price growth in November 2015.

On individual brands, BAT stated Dunhill’s market share fell 2.8 percentage points (ppt) to 43.3 percent in Jan-August 2016 compared with full year 2015.  

By comparison, Peter Stuyvesant listed a 6.3 percent share of market, up 0.7 ppt against full year 2015.

Pall Mall, meanwhile, recorded a marginal decrease of 0.2 ppt versus 2015, final at 4.3 percent for year to date August 2016.

On its prospects for the calendar year, BAT said it remained concerned with volumes continued to be affected by the present uncontrolled cigarette trade as a result of consumer trading over the authorized industry, in addition to the steep abrupt increase in November 2015.

BAT announced a third interim dividend of 55 sen compared with 78 sen.