BATBC posts profit growth despite falling sales

British American Tobacco Bangladesh Company Limited, a multinational manufacturer of tobacco products, recorded profit growth of 7.68% from January to March in 2022 despite falling sales.

The company’s gross revenue fell to Tk 8,767 crore from January to March this year from Tk 9,554 crore in the same period of the previous year, while its net profit rose to 416, 94 crore Tk in the first quarter of this year compared to 387.2 crore Tk in the first quarter of last year. according to the company’s financial statements.

The company’s earnings per share (EPS) increased to Tk 7.73 in the three-month period from Tk 7.17 in the same period a year earlier.

In the financial statements, the BATBC said: “EPS increased compared to the same period last year, due to lower operating expenses, fully offsetting lower net sales.”

The company’s operating expenses plunged 30.73% to Tk 162.68 crore from January to March 2022, from Tk 234.85 crore in the same period last year.

The company’s revenue from domestic sales fell to Tk 1,905.6 crore in the first three months from Tk 2,009.3 crore in the same period last year.

Sheet export revenue jumped to Tk 46.54 crore in the first quarter of this year from Tk 31.73 crore in the same period last year.

The company sold 1,620.1 crore sticks in the first quarter in the local market and reported Tk 8,720.40 crore in gross revenue.

It sold 1,776.3 crore sticks generating 9,521.33 crore revenue during the same period in 2021.

In the first three months of 2022, the company’s revenue from the export of finished products fell to Tk 86.47 lakh from Tk 1.02 crore in the same period last year.

British American Tobacco Limited was listed on the Dhaka Stock Exchange in 1977.

The company manufactures tobacco products and market brands such as Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot and Hollywood.

The company is headquartered in Dhaka and the cigarette factories in Dhaka and Savar, green leaf threshing factory in Kushtia, green leaf drying factory in Manikganj.

The company recorded a profit of Tk 1,494 crore and declared a 275% cash dividend for its shareholders in 2021.