British American Tobacco (Malaysia) Bhd reported its first quarterly net loss since establishing its current corporate structure in 1999.
The company recorded a net loss of RM35.15 million for the first quarter ended March 31, 2026.
This compares to a net profit of RM23.27 million in the prior-year period.
Revenue nearly halved during the quarter.
Higher operating costs drove the loss.
These costs stemmed from retail display ban compliance and a new operational model rollout.
Operating expenses rose 74.7% year-on-year.
This increase included restructuring-related costs.
The illicit cigarette trade pressured the legal tobacco market.
This illicit trade accounted for 56.7% of total industry volume.
The trade eroded the company's market share and industry dynamics.
Legal combustible volumes for the company fell 4.5% during the quarter.