BAT to bank on promising e-cigarette market

While the MCO may help reduce the group’s FY20 marketing spend, the social restrictions could permanently turn away smokers as some may have resorted to vaping or illicit cigarettes due to lower supplies of legal cigarettes during the MCO.

PETALING JAYA: While British American Tobacco (M) Bhd’s (BAT) earnings for the first half of 2020 is expected to contract due to the movement control order (MCO), lower operating expenses will help cushion sales decline.

Additionally, the group’s outlook remains intact, premised on the near completion of its restructuring exercise as well as regulation on vaping and e-cigarettes over the longer term.