British American Tobacco to invest Tk61cr for capacity expansion
British American Tobacco Bangladesh Company Limited is going to invest Tk60.7 crore in its factory to increase the production capacity.
The company's board has taken this decision in a meeting held on Wednesday where the company's unaudited financial report for the January to March quarter of 2023 was reviewed and approved.
According to the company's disclosure on the Dhaka Stock Exchange (DSE) website on Thursday, British American Tobacco will finance this investment through its own funds and bank loans.
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But how much of the amount will come from the company's own funds and how much from bank loans is yet to be revealed.
The company has not revealed any detailed information about how much the production capacity will increase and how much this expansion will add in the company's annual revenue either.
In the first three months of 2023, the tobacco company's revenue grew by 13% year-on-year and stood at Tk9,899.62 crore, thanks to a higher sales volume and leaf exports, according to the company's DSE disclosure.
And, in the January to March quarter, its net profit surged by 9.42% to Tk456.25 crore compared to the same quarter of 2022.
Its earnings per share stood at Tk8.44, net asset value per share at Tk74.71, and net operating cash flow per share at negative Tk2.09 at the end of the quarter.
In its disclosure, the company blamed higher VAT and tax payments for the negative net operating cash flow.
For the year 2022, British American Tobacco declared a 200% cash dividend for its shareholders.
For months, the company's shares have been stuck at the floor price of Tk518.7 at the DSE.
British American Tobacco Bangladesh has been publicly listed since 1977. Its paid-up capital is Tk540 crore.
The company manufactures tobacco products and has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, a green leaf redrying plant in Manikganj, and a number of leaf and sales offices throughout the country.
As of 30 April 2023, sponsors and directors hold 72.91% shares of the company, government holds 0.64%, institutions 12.86%, foreign investors 6.25%, and general investors 7.34%.
