KUALA LUMPUR: British American Tobacco (Malaysia) Bhd (BAT) recorded a net profit of RM241.74 million or 85.2 sen per share in the three months ended March (1QFY15), up 7.65% year-on-year (y-o-y) from RM224.56 million or 78.9 sen per share, driven by the November 2014 excise-led price increase.

BAT’s (fundamental: 1.35; valuation: 1.7) filing with Bursa Malaysia showed revenue at RM1.274 billion, up 10.4% y-o-y from RM1.154 billion.

It declared a first interim dividend of 78 sen per share, which amounts to RM222.71 million in total, payable on May 28.

Its market share for 1Q, it said, was at 61.1% — down 0.1 of a percentage point from the full 2014 — and “represents a commendable share performance, despite the price increase in the fourth quarter of 2014”.

During the quarter, its domestic and duty free volumes marginally declined 0.4%, compared with 1QFY14, it said. Contract manufacturing volumes, meanwhile, declined 4.8% y-o-y, largely due to declining volumes sold to the Australian market.

On prospects, BAT said the illegal cigarette trade remains a key challenge and its remains cautiously optimistic for 2015.

This article first appeared in The Edge Financial Daily, on April 29, 2015.