After reporting its lowest annual profit, British American Tobacco (BAT) Bangladesh posted a 34 per cent year-on-year decline in profit to Tk 2.10 billion in the first quarter this year, owing to lower sales and higher finance costs.
The multinational tobacco manufacturer's earnings per share (EPS) fell sharply to Tk 3.88 in the January-March quarter from Tk 5.89 in the same quarter last year, according to a regulatory filing on Thursday.
The company said both sales volume and revenue declined significantly during the quarter, while higher borrowing costs and an increased tax burden weighed on bottom-line growth.
Effective supplementary duty (SD) and value-added tax rose from 80 per cent of gross revenue in the first quarter last year to 84 per cent in the January-March quarter this year.
Consequently, net revenue excluding supplementary duty and value-added tax plunged 23 per cent year-on-year to Tk 14.33 billion in the quarter ended March this year.
The company's domestic sales decreased 21 per cent year-on-year to Tk 13.40 billion, while leaf exports declined 23 per cent to Tk 591 million in the January-March quarter this year compared to the same period last year.
Moreover, BAT earned Tk 911 million from exports of finished products in the first quarter last year, an income stream that remained completely absent in the same quarter this year.
Operating expenses jumped 41 per cent year-on-year to Tk 2.32 billion in the March quarter.
Net operating cash flow per share also came under further pressure and remained negative at Tk 22.70 in January-March this year, compared to negative Tk 17.62 in the same period last year, due to lower collections and higher interest payments.
The company's short-term borrowing almost doubled to Tk 18.60 billion at the end of March this year from December last year. Such borrowings were necessary to meet working capital requirements.
The net asset value, which refers to the excess of total assets over total liabilities, increased to Tk 103.38 per share in January-March this year from Tk 97.77 in the corresponding period last year.
Following the latest disclosure, BAT Bangladesh's stock slid 1.52 per cent to Tk 214 per share on Thursday on the Dhaka Stock Exchange (DSE).
Annual performance
BAT's profit nosedived to Tk 5.84 billion in 2025, the lowest since its listing, hit by a mid-year excise duty hike and a forced factory relocation that drove up one-off costs.
As a result, the cigarette manufacturer's earnings plunged 67 per cent year-on-year, largely because of a loss of Tk 1.37 billion in the fourth quarter from October to December last year.
Amid the sharp profit decline, the company's board declared a 30 per cent cash dividend for the year, the lowest dividend payout in its history, indicating a shift toward preserving liquidity and balance-sheet strength.
BAT has factories located in Savar, a green leaf threshing plant in Kushtia, and a green leaf re-drying plant in Manikganj.
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