British American Tobacco Bangladesh Company’s domestic cigarette sales fell 28% year-on-year to 3,624 crore sticks in January–September, down from 5,031 crore in the same period last year, according to its latest financial statement.
Analysts said inflation-hit consumers reduced consumption as rising cigarette prices pushed smokers toward cheaper illicit imports, milder imported brands and vaping, weighing on established players like BAT Bangladesh.
Exports showed a mixed trend. Cigarette exports plunged 69% to 42 crore sticks from 136 crore, while leaf exports surged 88% to 79 lakh kg from 42 lakh kg, partially offsetting the decline in manufactured-stick exports.
Despite the lower sales volume, gross revenue rose 6.83% to Tk 32,950 crore from Tk 30,843 crore, driven by a 13.76% rise in supplementary duty and VAT to Tk 27,196 crore from Tk 23,906 crore as the government’s incremental tobacco taxation lifted on-book collections.
However, net revenue shrank as more than 82% of the gross revenue went to supplementary duty and VAT. The company reduced its cost of goods sold by 8.85% to Tk 3,248 crore from Tk 3,563 crore, reflecting tighter cost control.
Gross profit fell 25.71% to Tk 2,507 crore from Tk 3,374 crore, as higher taxes and weaker demand eroded margins. Operating expense climbed 15.46% to Tk 650 crore from Tk 563 crore, pulling operating profit down 33.95% to Tk 1,857 crore from Tk 2,811 crore.
After contribution to the workers’ profit participation fund and payment of income tax, net profit dropped 45.54% to Tk 720 crore from Tk 1,323 crore, while earnings per share slid to Tk 13.34 from Tk 24.49.
BAT Bangladesh shares inched up 0.31% to close at Tk 254.90 on the Dhaka Stock Exchange on Thursday, before the company’s board of directors approved the latest financial statement.
