PETALING JAYA: British American Tobacco (M) Bhd (BAT) recorded an 8.9% increase in net profit mainly due to lower spend in marketing and distribution costs, as well as timing of brand-related activities.
For its financial year 2012 first-quarter net profit, BAT achieved RM194.51mil compared with RM178.56mil in the same period a year ago.
Revenue grew by 5.1% from RM992.15mil a year ago to RM1.04bil, in line with higher domestic volume as well as greater sub-contract manufacturing revenue.
The board of directors has declared a first interim dividend of 65 sen per share, amounting to RM185.59mil, payable on May 25.
In a statement released with its results, BAT said the first quarter last year was a period which saw the group¡¯s volume and market share adversely impacted by the activities of certain local sub-value-for-money brands selling below the Government-mandated minimum price.
"With the Government¡®s decision not to raise excise tax in 2011, increased effort by relevant Government agencies in curbing illegal cigarette trade and illegal pricing activities as well as strong performance by Dunhill, the group¡®s volume grew by 4.5% as compared to same period last year," it said.
"The group¡®s market share year to date of 62.5% was stable, up 0.2% as compared to preceding quarter," it added.
Dunhill continued its strong performance last year, maintaining its highest-ever market share of 46.6% in March this year, while the rest of the brands continue to remain resilient.
As for its outlook this year, BAT is optimistic that the group will continue to grow with its portfolio of brands, increasing market share by 1.4% year to date as compared to 2011 full year.
It said that Dunhill, in particular, continued with its commendable performance as displayed last year. Coupled with the recent new product launch in April, the group is confident that it will take Dunhill to greater heights.
"Nevertheless, the threat of illicit trade is still prevalent, with illicit incidence of 36.1% recorded for full-year 2011 Illegal Cigarettes Study commissioned by Confederation of Malaysian Tobacco Manufacturers," it added.