British American Tobacco (BAT) Bangladesh reported strong earnings growth in the second quarter ended June 2026, with net profit more than doubling on higher sales and lower operating expenses despite continued pressure on cigarette volumes.
The multinational tobacco company posted a net profit of Tk 2.03 billion for the April-June quarter, up from Tk 970 million in the corresponding period a year earlier.
Earnings per share (EPS) rose to Tk 3.77 from Tk 1.80 a year earlier, according to the company's financial statements released on Thursday.
The company attributed the sharp improvement in quarterly earnings to higher revenue and a significant reduction in operating expenses driven by efficiency gains.
Net revenue, excluding supplementary duty and value-added tax (VAT), increased 8.4 per cent year-on-year to Tk 23.98 billion during the quarter.
Operating expenses, meanwhile, fell 32 per cent to Tk 3.32 billion, helping operating profit surge 38 per cent to Tk 4.71 billion.
The latest quarterly results suggest BAT Bangladesh is benefiting from tighter cost controls and operational efficiencies, even as the domestic tobacco market remains under pressure from repeated tax increases and changing consumption patterns.
Despite the robust second-quarter performance, BAT Bangladesh's earnings for the first half of the year remained broadly unchanged.
Its net profit for January-June 2026 stood at Tk 4.13 billion, compared with Tk 4.15 billion in the corresponding period last year.
Half-year net revenue declined 6.1 per cent to Tk 38.30 billion from Tk 40.77 billion, reflecting continued weakness in sales volume amid higher tobacco taxes and softer consumer demand.
The company's net operating cash flow per share (NOCFPS), however, improved sharply to Tk 29.12 for January-June period this year from Tk 9.05 a year earlier, supported by lower payments for operating expenses as well as reduced supplementary duty and VAT following lower sales volumes.
The company endured a difficult 2025, when annual profit plunged to Tk 5.84 billion -- lowest since its listing -- after a mid-year increase in excise duty squeezed margins and the relocation of its manufacturing facility led to substantial one-off expenses.
Reflecting the weaker earnings and a more cautious capital management strategy, the board declared only a 30 per cent cash dividend for 2025, the lowest payout in the company's history.
BAT Bangladesh manufactures and markets several cigarette brands, including Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag and Hollywood.
The company's shares slipped 1.05 per cent to close at Tk 225.70 on the Dhaka Stock Exchange on Thursday.
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