BAT Bangladesh profit keeps soaring, 2022 no exception
British American Tobacco (BAT) Bangladesh has been posting business growth for the past few years, and the last year that ended on 31 December 2022 was no exception, even amid several economic adversities.
In 2022, the after-tax net profit of the market leader of tobacco surged 19.4% to Tk1,787 crore, from Tk1,497 crore in the previous year. In 2021, the profit growth was 37% year-on-year.
As per analysts, the nature of tobacco products is what mainly helped the company's business soar, as factors like high inflation, higher business costs, and a depreciating currency could not change the buying habits of the inelastic product's consumers.
According to its latest quarterly financials, the company's gross revenue increased by 8.7% year-on-year in the January to September period of 2022, and stood at Tk26,572 crore.
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Since the company is yet to publish its annual report for the year 2022, its annual revenue could not be known.
In the January to June period of 2022, its net revenue stood at Tk6,161 crore after deducting all the high taxes and duties on the discouraged tobacco products.
Analysts estimate that the remaining three months of the year should have brought the company handsome revenue and profit as well.
BAT officials, including company secretary, did not respond to the phone calls and text messages for comments on the company's annual performance.
On 31 December 2022, the company's net asset value per share stood at Tk76.27.
Business soars but dividend drops
Despite much higher net operating cash flow in 2022, BAT Bangladesh cut its dividends to the shareholders for the year.
In 2021, its shareholders got Tk27.5 in total cash dividends against each share having a face value of Tk10. And, based on the secondary market price of the company shares, investors had a dividend yield of 4.33%.
A secondary market investor's actual income from dividends for a year is called dividend yield.
For instance, BAT Bangladesh shares are stuck at the floor price of Tk518.7 nowadays.
The company, already paying an interim dividend of Tk10 per share, recommended another Tk10 as the final cash dividend to make the total dividend from a share Tk20 for the year 2022.
At the current market price, BAT Bangladesh shares are set to yield 3.85% return in form of total cash dividends for 2022.
BAT Bangladesh reported a big jump in its net operating cash flow per share in 2022 — from Tk14.73 to Tk50.04.
Opts for more directors on board
The multinational has decided to increase the number of seats in its board for complying with the corporate governance code.
For shareholders' approval of the proposed dividends, annual accounts, and other relevant agenda, the company called its annual general meeting on 29 March.
In a separate meeting called extraordinary general meeting, shareholders will consider the proposal for amendments in the company's articles of association to onboard more directors.
The record date has been set on 2 March, which means only those who will hold the company shares on that day will be entitled for the dividend and general meeting participation.
