Although BAT reported better on-year results, its quarter-on-quarter performance moved sideways with new government regulations banning the sale of packets containing fewer than 20 cigarettes.
“The group’s revenue remained flat versus the previous quarter as gains from volume increase was offset by unfavourable pack size mix,” BAT said in its announcement to the local bourse.
“Consequently, profit before taxation in the current quarter was lower... compared to the preceding quarter.”
The company also said the government’s decision to raise the excise tax of three sen per cigarette on October 1 will fuel the growth of cigarette smuggling in the country.
Thomson I/B/E/S estimates BAT’s net profit for the full year ending December 31 to come in at RM726.74 million. BAT’s RM573.9 million for the nine months ended September 30 puts the company solidly on track to meet estimates.
Analysts do not provide quarterly estimates for Malaysian companies.
BAT shareholders will get another interim dividend of 64 sen to be paid out in November soon.
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