BAT Bangladesh emerges as day's top loser after Q2 profit plunges 81%
For the first half of the year, the company posted a net profit of Tk415 crore, with earnings per share (EPS) standing at Tk7.69
British American Tobacco (BAT) Bangladesh became the day's top loser on the Dhaka Stock Exchange (DSE) after its share price tumbled 7.95% to Tk296.20 on Sunday.
The sharp fall followed the company's disclosure of an 81% year-on-year drop in net profit for the second quarter of 2025.
According to its unaudited financial statement filed on the DSE on Sunday, BAT Bangladesh's profit for April-June of 2025 fell to Tk97 crore from Tk512 crore in the same period last year. Revenue also declined by 23% year-on-year, dropping to Tk2,213 crore from Tk2,891 crore.
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For the first half of the year, the company posted a net profit of Tk415 crore, with earnings per share (EPS) standing at Tk7.69.
The company attributed the sharp decline in revenue and profit to persistent inflationary pressures and the temporary shutdown of its Dhaka factory.
In early June, BAT Bangladesh announced plans to halt operations at its Mohakhali factory from 1 July, following the Supreme Court's rejection of its appeal to extend the land lease agreement with the Dhaka Cantonment Board. The company also said it would relocate its corporate headquarters from Mohakhali DOHS to Ashulia, Savar on the same date.
As detailed in its 2024 annual report, BAT Bangladesh had been leasing the Mohakhali premises since 1964, with each lease term spanning 30 years and a maximum allowable renewal period of 90 years.
BAT Bangladesh plans to invest approximately Tk297 crore to expand its production capacity at its Savar facility to offset the closure of the Dhaka site. The investment will be financed through a combination of internal resources and bank loans, with the final breakdown to be determined based on a review of the company's cash flow.
The Mohakhali facility was the company's second factory, established in 1965. The first was set up in Fauzdarhat, Chattogram, in 1949, during the East Pakistan era.
BAT Bangladesh operates factories in Dhaka and Savar, alongside a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.
Since 2021, the multinational company has invested Tk1,333 crore in its Savar factory to capitalise on emerging export opportunities for cigarettes from Bangladesh, according to the annual report.
In 2024, the company had paid a 300% cash dividend for shareholders, amounting to Tk1,620 crore. This marks a significant increase from the 100% cash dividend (Tk540 crore) distributed in 2023.
