BAT posts lowest annual profit amid factory closure and rising costs

British American Tobacco (BAT) Bangladesh's profit nosedived to Tk 5.84 billion in 2025, the lowest since its listing, due to lower sales, higher excise duty, and a one-off cost for the Dhaka factory closure.
In that, the cigarette manufacturer's profit plunged 67 per cent year-on-year.
Subsequently, the company's earnings per share (EPS) came down to Tk 10.81 in 2025 from Tk 32.42 the year before, according to price-sensitive information published on Monday.
BAT's annual profit shrank to a large extent because of a loss of Tk 1.37 billion in the fourth quarter from October to December last year.
With a remarkably low profit, the company's board declared a 30 per cent cash dividend for the year, also the historically lowest since its stock market listing in 1977.
Investors will get Tk 3 per share as against earnings of Tk 10.81 per share for the year. In 2024, the company paid a 300 per cent cash dividend.
At present, BAT Bangladesh's total number of shares is 540 million. That means the company will disburse Tk 1.62 billion in dividends to its shareholders.
Due to the lower dividend declaration, BAT's dividend yield fell to 1.13 per cent in 2025, also a record low.
The company is yet to provide details about the financial results.
Company secretary Syed Afzal Hossain could not be reached for comments.
Akramul Alam, head of research at Royal Capital, said additional costs due to the Dhaka factory site closure might be a major reason for the profit decline.
Moreover, input costs increased alongside higher excise payments, but the company could not adjust cigarette prices in line with the higher costs due to inflationary pressure, which hit the bottom line, Alam said.
BAT Bangladesh closed its Dhaka factory last year following the Supreme Court's rejection of its appeal to extend the land lease agreement, and shifted operations to Ashulia.
The company spent Tk 2.12 billion in the nine months through September last year as one-off exit costs (head office).
Following the closure of its Dhaka factory, the company also invested Tk 2.97 billion last year to expand the capacity of its Savar factory to minimize production disruption.
The company is yet to disclose its annual revenue for 2025. Its nine-month revenue dropped 17 per cent year-on-year to Tk 57.55 billion through September last year.
BAT will hold its annual general meeting (AGM) on April 30. The record date for the entitlement to the dividends is April 1.
It markets various brands, namely Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag, and Hollywood.
Meanwhile, the stock of the company rose 0.45 per cent to Tk 266.1 per share on Monday on the Dhaka Stock Exchange (DSE). The latest earnings disclosure came after the market closure.

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