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British American Tobacco saw a 2.42 per cent year-on-year rise in profit to Tk 13.56 billion in the nine months to September.
Its revenue during the period went up 10.24 per cent to Tk 67.92 billion, compared to the same period a year ago. The profit growth was not as high as revenue growth due to a jump in the cost of sales and operating expenses.
The company's cost of sales soared 20 per cent while the operating expenses were up 13 per cent for January-September this year, compared to the same period of the previous year.
On the other hand, the net finance income plunged 34 per cent year-on-year to Tk 295.49 million in the nine months to September.
The company did not provide any explanation in its earnings note.
Earnings per share (EPS) stood at Tk 25.11 for January-September 2023, up from Tk. 24.52 for January-September 2022.
In its Thursday disclosure, BAT said the earnings growth had been driven by sales volume growth, a decline in net finance, and current tax expenses that had partially offset the increase in cost of sales and operating expenses.
The company's net operating cash flow slowed in the first nine months of 2023 to Tk. 11.38 per share from Tk. 39.55 per share in January-September last year.
Cash generated from operating activities fell 45 per cent to Tk 17.64 billion in the three quarters to September, compared to a year earlier. On the other hand, cash used in investments jumped 45 per cent to Tk 4.31 billion in the nine months, compared to the same period a year back.
That is why the NOCFPS dropped significantly in January-September, compared to the same period of the last year.
Meanwhile, the BATBC's board of directors approved of capital investment of Tk 332.10 million on rooftop solar panel with 3.2 MW capacity.
The solar panel system will help achieve a 50 per cent reduction in carbon-dioxide emission as well as begin the journey to attain 50 per cent renewable electricity usage.
The investment will be funded from internal sources and bank borrowing.
Meanwhile, BAT's share price has remained stuck at the floor price of Tk 518.70 since September 7, 2022.