BATBC’s Q1 profit plunges 34pc on lower sales

The profit of British American Tobacco Bangladesh Company (BATBC) plunged 34 per cent year-on-year to Tk 2.10 billion in the first quarter of 2026, primarily due to lower sales and higher operating costs.

The multinational tobacco company’s earnings per share (EPS) fell sharply to Tk 3.88 in the January-March quarter from Tk 5.89 in the same period a year earlier, according to a regulatory filing published on Thursday.

The cigarette manufacturer said both sales volume and revenue declined significantly during the quarter.

Its overall net sales dropped 23 per cent year-on-year to Tk 14.33 billion in the quarter ended March 2026, compared with Tk 18.64 billion in the corresponding period of the previous year.

The net operating cash flow per share (NOCFPS), which indicates a company’s ability to generate cash from operations, remained negative at Tk 22.70 during the January-March period, compared with negative Tk 17.62 a year earlier, due to lower collection from sales and higher excise duty payments.

However, the company’s net asset value (NAV) per share rose to Tk 103.38 in March 2026 from Tk 97.77 a year earlier.

Meanwhile, British American Tobacco Bangladesh’s annual profit dropped to Tk 5.84 billion in 2025, the lowest since its stock market listing, following a mid-year excise duty hike and one-off expenses related to factory relocation.

Amid the weak earnings performance, the company declared a 30 per cent cash dividend for 2025, also its lowest-ever dividend payout.

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