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British American Tobacco (BAT) Bangladesh has posted a 23 per cent year-on-year decline in profits for the third quarter of this year, primarily driven by lower sales and increased operational costs.
The multinational tobacco company reported a profit of Tk 3.05 billion for the July-September period as against Tk 3.97 billion during the same period in 2024. Its earnings per share (EPS) fell to Tk 5.65, down from Tk 7.35 a year earlier, according to a filing with the Dhaka Stock Exchange (DSE).
"Sales volume declined significantly, while higher excise duty and additional costs due to closure of its Dhaka factory hit bottom-line growth," said the company in its earnings note.
The cigarette manufacturer's overall net sales in the July-September quarter dropped by 18 per cent year-on-year to 16.77 billion as against Tk 20.52 billion in the same quarter a year before.
The company's nine-month performance also showed a stark decline, with profits for the period dropping 46 per cent year-on-year to Tk 7.2 billion. And overall net sales over the first three quarters of 2025 fell by 17 per cent to Tk 57.55 billion, despite a substantial increase in leaf exports.
The company's local sales plummeted 20 per cent to Tk 52.31 billion, while exports of tobacco leaf soared to Tk 3.70 billion -- an increase of 78 per cent compared to the same period in 2024.
BAT Bangladesh had shut down its Dhaka factory in July last year following a court order, relocating operations to a new site in Ashulia.
The company incurred one-off exit costs (Head office) amounting to Tk 2.12 billion during the nine-month period, contributing to a 15 per cent rise in operating costs year on year, which totalled Tk 6.50 billion.
Moreover, the company also faced a 21 per cent increase in finance expenses and a 14 per cent rise in excise duty expenses, both of which further pressured its bottom line.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, turned negative Tk 21.70 per share for January-September period, from positive Tk 26.17 in the same period last year, due to lower collection from sales and higher excise payment.
The net asset value, which refers to the excess of total assets over total liabilities, also dropped to Tk 105.22 per share from Tk 113.82 in last year due to lower profit.
Annual Performance
BAT Bangladesh posted a 2 per cent year-on-year de-growth in profit to Tk 17.51 billion in 2024. Despite profit fall, the company paid a 300 per cent cash dividend in total for the year, the highest in three years.
BAT markets various brands namely Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag and Hollywood.
Its stock closed at Tk 254.9 on the Dhaka Stock Exchange on Thursday, gaining 0.31 per cent over the previous day.
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