KUALA LUMPUR: British American Tobacco (M) Bhd's (BAT) net profit for the first quarter (Q1) ended March 31, 2018, declined 19 per cent to RM96.23 million from a year earlier as it wound down its manufacturing operations.
Revenue fell 14.8 per cent to RM637.65 million from RM748.37 million registered in the same period, the company said in a filing with Bursa Malaysia today.
BAT, which made its last production run in June last year, attributed the lower revenue to the domestic and duty-free volume decline and absence of the sale of residual leaf raw materials to related companies overseas in line with the winding down of its manufacturing operations.
This, combined with the portfolio mix impact due to the addition of value-for-money brand Rothmans, led to a lower gross profit, it said.
BAT noted the total legal industry volume fell by four per cent in Q1 2018 versus the same period last year as a result of total illegal cigarette growth.
“As a consequence, the group's domestic volume declined six per cent compared with the same period last year driven by market contraction,” it added.