British American Tobacco Bangladesh cigarette sales fall 14%, Q1 profit drops 34%

British American Tobacco (BAT) Bangladesh reported a sharp downturn in the first quarter of 2026, with cigarette sales volumes falling about 14% or 150.7 crore while profit plunging 34%, reflecting mounting pressure from inflation, higher taxes, and weaker consumer spending in Bangladesh.

The company also stated a 34% decline in profit to Tk209.50 crore, with earnings per share (EPS) of Tk3.88 in Q1. During the same period of the previous year, its profit was Tk317.95 crore while EPS stood at Tk5.89.

As sales volume declined, its gross revenue also fell by 9.08% to Tk8,725 crore during the January–March quarter, according to its financial statements published today (14 May) through the stock exchanges.

Following the disclosure, its share price fell by 1.52% to Tk214 at the Dhaka Stock Exchange (DSE).

The statement showed that the company sold 923.1 crore cigarette sticks in Q1, down from 1,073.9 crore sticks in the same period of 2025.

The figures suggest pressure on consumer demand and or changing market conditions in Bangladesh's tobacco sector, which may include higher taxes, inflation-driven spending constraints, or a shift toward lower-priced alternatives.

As sales volume declined, its gross revenue also fell by 9.08% to Tk8,725 crore during the January–March quarter, according to its financial statements.

Regarding the drop in profit, BAT Bangladesh said its EPS decreased compared to the same period last year due to a decline in sales volume and revenue.

Its financial statement showed that finance expenses slightly declined to Tk49.24 crore, while operating expenses surged by 41% to Tk231.83 crore in Q1 2026 from Tk164.78 crore in the corresponding period of 2025.

According to the report, the net operating cash flow per share decreased to negative at Tk22.70, which was also negative at Tk17.62 for the January to March 2025 while its net asset value per share increased to Tk103.38.

The company said, Net Operating Cash Flow decreased due to lower collection from sales and higher interest payment due to higher utilisation of short-term loans to meet working capital requirements.

The company's income or loss statements showed it paid Tk7,292 crore to the government as supplementary duty and value added tax (VAT) against Tk8,725 crore gross sales as of March 2025. It also paid Tk285 crore as income tax expenses.

In Q1, 2025, it had paid Tk7,733.10 crore as supplementary duty and VAT.

Its gross revenue from domestic sales declined to Tk8,416 crore, and earned Tk246.22 crore from third party sales. No revenue earned from exporting finished goods. But it earned Tk59.13 crore from tobacco leaf export, the report showed.

After payment of taxes, its net revenue stood at Tk1,432.78 crore in Q1, 26, down from Tk1,864 crore in Q1, 2025, said BAT in its disclosure.