British American Tobacco’s profit rises by 18% amid pandemic

Before the pandemic hit, both sales and profit of British American Tobacco Bangladesh was in the upward trajectory, but as the pandemic kept raging, its sales dropped while profit rose as the price of cigarettes went up.

Finally in 2020, British American Tobacco's profit increased by 18.04%. The company has decided to pay 600% cash dividends including 300% interim dividends. It will also pay a 1:2 bonus dividend.

In the year, the company made a profit of Tk1,091.52 crore while earnings per share (EPS) stood at Tk60.48.

In 2019, its sales increased by more than 15.75% and profit decreased by 7.6% compared to those in the previous year.

Its revenue was Tk26,985 crore and profit was Tk925 crore in 2019.

The company is engaged in manufacturing Benson & Hedges, John Player Gold Leaf and Star cigarettes.

After the pandemic hit, in the six months from April to September, the sale of the company declined by 18.19%, but profit increased by 71.58% compared to that in the previous year.

In the first quarter from January to March of 2020, the company made a good profit and sales also increased. In this period, its revenue rose by 33% and profit by 58%.

In the first nine months of 2020, the multinational company's revenue jumped by 5% to Tk20,380.18 crore while profit rose by 35% to Tk872.15 crore over the same period a year ago.

In the first nine months of 2019, its revenue and profit were Tk19,436.06 crore and Tk647.10 crore respectively.

In the first half of 2020, the company revenue was Tk14,816.82 crore and profit Tk600.34 crore. The revenue and profit was 10% and 57% up respectively.

Before the pandemic, in the first quarter of January-March in 2020, British American tobacco Bangladesh Limited's gross revenue increased by 32% while profit by 50%.

But when the countrywide shutdown continued from 26 March to 30 May, it faced an 11% revenue drop while profit jumped by 69% in the second quarter from April to June in 2020.

In the third quarter from July to September, its British revenue dropped by 7% and profit increased by 2%.

The tobacco company was listed on the stock exchanges in 1977. From the beginning, it was doing good business in the country and the shareholders also got good feedback from their investment there.

As of 31 January of 2021, out of the 18 crore shares, sponsors and directors of the company hold 72.91%, the Bangladesh government 0.64%, institutional investors 12.04%, foreign investors 11.14% and general shareholders 3.27%.

On Wednesday, British American Tobacco Bangladesh Company Limited share price was Tk1,509.70 per share.