Key Points
- BAT sales fall 14%;
- Q1 profit drops 34%;
- Taxes continue pressuring margins;
- Bangladesh consumer demand weakens.
2Firsts
May 15, 2026
According to The Business Standard, British American Tobacco Bangladesh reported an approximately 14% year-on-year decline in cigarette sales volume in the first quarter of 2026, while profit fell 34%.
Financial disclosures showed the company sold 92.31 billion cigarette sticks during the quarter, down from 107.39 billion sticks in the same period of 2025, representing a decline of approximately 15.07 billion sticks.
Quarterly profit fell to Tk209.5 crore (approximately $172 million), with earnings per share (EPS) of Tk3.88, compared with profit of Tk317.95 crore (approximately $261 million) and EPS of Tk5.89 a year earlier.
As sales volume declined, gross revenue fell 9.08% year-on-year to Tk8,725 crore (approximately $7.17 billion).
Following the disclosure, BAT Bangladesh shares fell 1.52% to Tk214 (approximately $1.76) on the Dhaka Stock Exchange (DSE).
The company said lower sales volume and revenue were the primary reasons for weaker profitability.
Financial statements showed operating expenses surged 41% to Tk231.83 crore (approximately $190 million) from Tk164.78 crore (approximately $135 million) in the corresponding quarter of 2025.
Meanwhile, finance expenses declined slightly to Tk49.24 crore (approximately $40.4 million).
BAT Bangladesh said net operating cash flow per share remained negative due to lower collections from sales and increased short-term borrowing to support working capital requirements.
Net operating cash flow per share stood at negative Tk22.70 (approximately negative $0.19), compared with negative Tk17.62 (approximately negative $0.14) in the same quarter last year.
The company’s net asset value (NAV) per share increased to Tk103.38 (approximately $0.85).
During the quarter ended March 2026, BAT Bangladesh paid Tk7,292 crore (approximately $5.99 billion) in supplementary duties and value-added tax (VAT) to the government against gross sales of Tk8,725 crore (approximately $7.17 billion).
The company also paid Tk285 crore (approximately $23.4 million) in income tax expenses.
In the first quarter of 2025, BAT Bangladesh had paid Tk7,733.1 crore (approximately $6.35 billion) in supplementary duties and VAT.
Revenue from domestic sales declined to Tk8,416 crore (approximately $6.91 billion), while third-party sales generated Tk246.22 crore (approximately $202 million).
The report showed the company recorded no revenue from finished goods exports, although tobacco leaf exports generated Tk59.13 crore (approximately $48.5 million).
Net revenue after taxes declined from Tk1,864 crore (approximately $1.53 billion) in Q1 2025 to Tk1,432.78 crore (approximately $1.18 billion) in Q1 2026.
The report said Bangladesh’s tobacco sector continues facing inflationary pressure, rising taxes, and weakening consumer purchasing power.
Industry observers said some consumers may be reducing cigarette consumption or shifting toward lower-priced alternatives amid economic pressure.
At the same time, multinational tobacco companies continue expanding investments in vaping, heated tobacco, and oral nicotine products as traditional cigarette market growth slows globally.
（Cover Image：batbangladesh.com）
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