Govt's revenue from BAT Bangladesh rises 14% to Tk27,196cr in 9 months of 2025
However, BAT Bangladesh's own financial performance weakened significantly during the January-September period.
The government earned Tk27,196 crore in supplementary duty and value-added tax (VAT) from British American Tobacco (BAT) Bangladesh Company Limited in the first nine months of 2025, marking a 14% increase compared to the same period last year.
Despite the rise in government revenue, BAT Bangladesh's own financial performance weakened significantly during the January-September period, according to the company's unaudited financial statement.
BAT Bangladesh's net revenue declined by 17% year-on-year to Tk5,754.71 crore, while net profit plunged by 46% to Tk720 crore. Its earnings per share (EPS) stood at Tk13.34, compared to Tk24.49 in the same period a year ago.
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The company attributed the sharp fall in profit to a steep drop in cigarette sales volume, higher excise duty, and additional costs linked to the closure of its long-running Mohakhali factory.
BAT Bangladesh reported that cigarette stick sales fell 28% year-on-year to 36,239 million sticks during the nine-month period.
At the end of September, its net asset value (NAV) per share stood at Tk105.22, while the net operating cash flow per share (NOCFPS) was Tk21.70 negative.
The company said the decline in operating cash flow was mainly due to lower sales collections and higher excise payments.
In early June, BAT Bangladesh announced that it would cease operations at its Mohakhali factory from 1 July, after the Supreme Court rejected its appeal to extend the land lease with the Dhaka Cantonment Board. The company also relocated its corporate headquarters from Mohakhali DOHS to Savar's Ashulia on the same day.
BAT Bangladesh had been operating from the Mohakhali site since 1964 under a 30-year renewable lease arrangement, with a maximum renewal period of up to 90 years. The factory, established in 1965, was the company's second manufacturing facility, following its first factory at Fauzdarhat in Chattogram, set up in 1949 during the East Pakistan era.
To offset the impact of the Mohakhali factory closure, BAT Bangladesh has announced plans to invest Tk297 crore in expanding production capacity at its Savar facility. The expansion will be financed through a mix of internal funds and bank loans, the company said, with the final structure to be determined following a review of its cash flow position.
