BAT Bangladesh share drops 9% as it declares record low dividend
The company also reported a loss of Tk136 crore in the October–December quarter of 2025, reflecting a sharp deterioration in earnings amid declining cigarette sales and higher operating costs.
British American Tobacco Bangladesh has recommended a 30% cash dividend for 2025, sharply lower than the 300% cash dividend it distributed in 2024.
Following the disclosure, the company's share price fell by 8.94% to Tk242.30 today (3 March) at the Dhaka Stock Exchange.
The company also reported a loss of Tk136 crore in the October–December quarter of 2025, reflecting a sharp deterioration in earnings amid declining cigarette sales and higher operating costs.
Keep updated, follow The Business Standard's Google news channel
In a statement, the company reported a 67% decline in earnings per share (EPS) for the year ended 31 December 2025, as profit came under significant pressure. The significant drop was mainly due to lower turnover and increased operating expenses. Costs rose as a result of inflationary pressures and higher levels of activity in certain parts of the business.
Net operating cash flow fell by 81% compared to the previous year. The decline was largely driven by lower profit and higher cash outflows following an increase in excise duty, although some of the impact was offset by other factors.
In July 2025, the company ceased operations at its Dhaka factory and relocated the plant, machinery, and cigarette manufacturing equipment to its Savar facility. The compulsory site closure, coupled with relocation and restructuring costs, resulted in a one-off negative impact of Tk715 crore on operating profit compared to the previous year.
According to the company's financial statements approved at a board meeting held yesterday (2 March), the multinational tobacco manufacturer posted a loss per share of Tk2.53 in the fourth quarter of 2025.
For the full year ended December 2025, earnings per share stood at Tk10.81, representing a 67% decline year-on-year.
The company has scheduled its annual general meeting for 30 April to seek shareholder approval for the audited financial statements and the proposed dividend. The record date has been fixed for 1 April.
In its price-sensitive disclosure, the company did not offer detailed explanations for the sharp drop in profit and dividend payout in 2025. However, earlier disclosures indicated that business performance came under strain following the closure of its Mohakhali factory on 1 July 2025.
