BAT Bangladesh declares Tk1,620cr dividend for 2024
Following the dividend declaration, its share price fell by 0.93% to settle at Tk350 in the first half an hour of Thursday session
Highlights
- 300% cash dividend declared for 2024
- Earnings per share drop 2% to Tk32.40
- 25 March set for annual general meeting
- 26 February scheduled for record date
British American Tobacco (BAT) Bangladesh – a leading multinational cigarette manufacturer – has declared a 150% final cash dividend for 2024, according to a stock exchange filing.
This brings the total dividend payout for the year to 300% cash, amounting to Tk1,620 crore, including the 150% interim dividend already paid in December. This compares to a 100% cash dividend, or Tk540 crore, in 2023.
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To approve the final dividend and audited financial statements, the company will hold its annual general meeting on 25 March, with the record date set for 26 February.
However, its earnings per share (EPS) declined by 2% year-on-year to Tk32.42. Following the announcement, its share price fell by 0.93%, closing at Tk350.
Of the total declared dividend, sponsors and directors will receive 72.91%, the government will get 0.64%, institutional investors will receive 13.80%, foreign investors will be allocated 4.52%, and the remaining 8.13% will go to general shareholders.
The multinational company has yet to publish its detailed financial results for the past year. According to the January-September report, it earned Tk30,843 crore from cigarette sales. After paying taxes, its net revenue stood at Tk6,937 crore.
Earlier in December, the company announced an investment of Tk28.38 crore to enhance its production capacity and meet the growing demand for its products.
It said the investment would be financed through a combination of internal resources and bank loans, in line with its cash flow strategy.
BAT Bangladesh operates factories in Dhaka and Savar, alongside a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.
According to a quarterly financial statement, it produced 50,305 million sticks and 4.16 million kilogrammes of tobacco leaf in the first nine months of the past year.
Since 2021, the multinational company has invested Tk1,333 crore in its Savar factory to capitalise on emerging export opportunities for cigarettes from Bangladesh, according to the annual report.
In its annual report for 2023, the cigarette manufacturer highlighted that the country is strategically positioned to capitalise on significant export opportunities in the tobacco industry, including leaf, cut rag, and cigarettes.
This advantage is driven by Bangladesh's inherent cost competitiveness and strong commitment to high product quality.
Building on the success of the ready-made garments industry, the report emphasised that the tobacco sector has substantial potential to establish a robust presence in the global export market.
