BAT Bangladesh incurs Tk714cr relocation cost amid factory shutdown
Following the decision, the company approved an investment of approximately Tk297 crore to expand production capacity at its Savar facility
British American Tobacco (BAT) Bangladesh, a listed multinational company, has incurred Tk714.58 crore in restructuring and relocation costs, with the largest portion – Tk375 crore –stemming from fixed asset impairment, according to its auditor.
In an emphasis of matter in the audited financial statements for 2025, the auditor noted that these developments indicate significant operational changes during the year.
In June last year, BAT Bangladesh decided to shut down operations at its Dhaka factory after the Supreme Court rejected its appeal to extend the land lease agreement. The company also relocated its head office from Mohakhali DOHS to Ashulia in Savar.
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Following the decision, the company approved an investment of approximately Tk297 crore to expand production capacity at its Savar facility.
In a disclosure accompanying its 2025 annual dividend announcement, BAT Bangladesh said that operations at the Dhaka factory were shut down in July 2025, and plant, machinery, and cigarette manufacturing equipment were transferred to its Savar factory.
The company said the forced site closure, relocation, and restructuring had a one-off impact of around Tk715 crore on operating profit compared to the previous year.
According to company data, BAT Bangladesh reported a loss of Tk136 crore in the October-December quarter of 2025, reflecting a sharp deterioration in earnings amid declining cigarette sales and rising operating costs.
For the full year, earnings per share (EPS) stood at Tk10.81, marking a 67% decline year-on-year.
The sharp drop in profitability prompted the board to recommend a 30% cash dividend for 2025, significantly lower than the 300% cash dividend declared in 2024.
