According to a report from TBS News, British American Tobacco (BAT) has experienced a significant decline in sales and profits in Bangladesh. This is primarily due to a decrease in tobacco exports and a dramatic reduction in domestic tobacco sales.
According to the financial report of the company for the period of January to March, the multinational tobacco producer's gross revenue decreased by 5% to a total of 940.7 billion taka. The government received 741.3 billion taka from tobacco value-added tax and other taxes. The company's net income also decreased by 12% to 199.4 billion taka, with profits declining by 9.41% compared to the same period last year, amounting to 41.3 billion taka.
At the same time, the company's cigarette sales decreased by 10.39% and tobacco exports dropped by 81% to 1.8 billion takas, compared to 9.5 billion takas in the same period last year. The company's earnings per share (EPS) fell to 7.65 takas by the end of March 2024.
After the financial report for this quarter was released at the Dhaka Stock Exchange on Tuesday, the stock prices of BAT in Bangladesh fell by 2.57%, closing at 363.30 taka. Its Net Operating Cash Flow Per Share (NOCFPS) was -10.49 taka, compared to -2.09 taka in the same period last year. The report attributed this decrease in NOCFPS compared to the previous year to higher consumption taxes and tax payments.
According to data released by the Bangladesh Bureau of Statistics on May 13, the food inflation rate in April soared to a near five-month high of 10.22%, while the non-food inflation rate was 9.64% in March and slightly decreased to 9.34% in April. Analysts believe that inflation may impact cigarette sales as people are now more focused on food purchases. Additionally, the Ramadan month may also affect sales of cigarettes.
According to a disclosure on the Dhaka Stock Exchange website on Tuesday, British American Tobacco (BAT) reported a decrease in its earnings per share (EPS) in Bangladesh compared to the same period last year, mainly due to a decrease in sales volume and tobacco exports. In the first three months of 2024, BAT's cigarette sales in Bangladesh decreased from 179.9 billion to 161.2 billion compared to the same period last year.
Since 1977, British American Tobacco has been publicly listed on the Dhaka Stock Exchange. In addition to producing tobacco products, it also sells brands such as Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Derby, Pilot, Hollywood, and Lucky Strike. It has tobacco factories in Dhaka and Savar, a green tobacco threshing plant in Kushtia, and a green leaf re-drying plant in Manikganj.
In 2023, BAT's net income in Bangladesh increased by 8.83% to 916.7 billion Taka, with a slight increase in profits to 178.8 billion Taka. It also obtained revenue of 47.296 billion Taka from tobacco exports, all of which are detailed in its annual report.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
