BATBC’s profit drops 46pc in Jan-Sept due to lower sales, higher costs
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British American Tobacco (BAT) Bangladesh’s profit dropped nearly 46 per cent year-on-year to Tk 7.20 billion in nine months through September this year, owing to lower sales and higher costs.
The multinational tobacco manufacturer said sales volume declined, while higher excise duty and additional costs due to closure of its Dhaka factory, hitting bottom-line growth.
Accordingly, tobacco leader’s earnings per share (EPS) dropped to Tk 13.34 in the January-September this year, compared to Tk 24.49 in the same period last year, according to price sensitive information published on Thursday.
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 in January-September this year, 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, dropped Tk 105.22 per share, down from Tk 113.82 in last year.
BAT markets various brands namely Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag and Hollywood.
BAT has factories located in Dhaka and Savar, a green leaf threshing plant in Kushtia, and a green leaf re-drying plant in Manikganj.
Its stock closed at Tk 254.9 on Thursday at the Dhaka Stock Exchange on Thursday, gaining 0.31 per cent over the previous day.