British American Tobacco Bangladesh Company (BATBC), one of the country’s leading multinational companies, has reported a significant decline in profits for the first half of 2025.
This sharp downturn in earnings was primarily caused by a 31 per cent drop in cigarette sales, marking a notable shift in market dynamics.
According to the company’s financial disclosures, earnings per share (EPS) for the first half of 2025 plummeted to Tk 7.69, compared to Tk 17.14 for the same period in 2024. The second quarter (April–June 2025) was particularly harsh, with EPS dropping to Tk 1.80, down from Tk 9.48 in the same quarter of 2024.
The key factor driving this decline was a significant reduction in sales volume, with cigarette sales in the first half of the year falling by 30.9 per cent.
The total sales volume in the domestic market stood at 2,642 crore sticks over the January-June period, down from 3,823 crore sticks in the same period last year.
Analysts attribute the sales slump to a rising black market for imported mild cigarettes and the increasing popularity of nicotine vaping through electronic devices. These factors have significantly affected the sales of strong cigarette brands like Gold Leaf, Benson, Lucky, Star, Derby, and Pilots.
Along with the domestic sales decline, BATBC also saw a significant drop in its leaf and cigarette export volumes.
The company’s net revenue fell to Tk 4,078 crore in the first half of 2025, compared to Tk 4,886 crore in 2024.
Despite a rise in gross revenue to Tk 23,482 crore from Tk 22,340 crore in 2024, higher supplementary duties and VAT payments have drastically reduced BATBC’s net revenue.
Net revenue from domestic sales dropped to Tk 3,776 crore, down from Tk 4,703 crore a year ago, while revenue from finished goods exports fell to Tk 108 crore, compared to Tk 155 crore in 2024.
Alongside the sales drop, BATBC faced rising inflationary pressures that led to higher costs, while impairment losses resulting from the closure of its Dhaka factory hit profitability further.
The company’s Net Asset Value per Share (NAVPS) stood at Tk 99.57 as of June 30, 2025, down from Tk 106.88 as of December 31, 2024.
Following the earnings report, BATBC’s stock price on the Dhaka Stock Exchange (DSE) dropped by 7.96 per cent on Sunday, closing at Tk 296.20.