Despite sales decline, BAT Bangladesh posts higher profit
The company sold 16,201 million sticks in Q1 in the local market, and earned Tk8,720.4cr in gross revenue
Despite a drop in revenue, British American Tobacco Bangladesh – a multinational cigarette manufacturer – reported growth in profit thanks to a decline in operating expenses.
In the first quarter of 2022, its gross revenue declined 8.23% compared to last year, while the profit increased by 7.68%.
During the three months through March, its earnings per share (EPS) rose to Tk7.73, an increase from Tk7.17 a year ago, according to its financials.
The company said the EPS was driven up by lower operating expenses fully offsetting the decline in net revenue.
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In the January-March quarter, the company's operating expenses declined 30.73% to Tk162.68 crore, from Tk234.85 crore last year.
Local sales fell, leaf export surged
According to its financials up to March 2022, BAT Bangladesh witnessed an 8.41% fall in revenue from the local market.
Despite its finished goods export decline, the company witnessed a 45% growth in export revenue as its leaf export increased.
BAT Bangladesh sold 16,201 million sticks in the first quarter in the local market, and it earned Tk8,720.40 crore in gross revenue.
At the same time in 2021, it sold 17,763 million sticks worth around Tk9,521.33 crore.
A small portion of revenue originated from exports. The multinational firm exports finished goods and tobacco leaves.
In the January-March quarter of this year, the export earnings were Tk47.41 crore, a 44% increase from Tk32.73 crore in the same time of 2021.
The revenue from finished goods export declined to Tk86.47 lakh, a 15% drop from Tk1.02 crore.
Gross revenue from tobacco leaf export increased 47% to Tk46.54 crore.
British American Tobacco Limited, which got listed on the Dhaka Stock Exchange (DSE) in 1977, manufactures tobacco products.
It has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, and a green leaf re-drying plant in Manikganj.
In 2021, the company made a profit of Tk1,494.10 crore and paid a 275% cash dividend to its shareholders.
