BAT Bangladesh sells Tk29,350cr cigarettes in Jan-Sep
It marks a 10% year-on-year rise
British American Tobacco Bangladesh Company (BATBC) has earned a record revenue of Tk29,350 crore by selling cigarettes in the first nine months of this year.
It marks a 10% year-on-year rise.
In the January–September period, the multinational tobacco product manufacturer sold 5,229 crore cigarette sticks, which was 7.60% higher than the previous year.
However, the company had to pay off Tk23,833 crore from its revenue to the government exchequer as supplementary duty, VAT, and income tax.
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In the national budget for FY24, prices for 10 sticks of medium-tier and high-tier cigarettes increased by 3.08% to Tk67 and 1.80% to Tk113, respectively.
In the premium tier, the price for 10 sticks of cigarettes was set to Tk150, a 5.63% increase.
Additionally, the turnover tax applied to the tobacco industry was raised from 1% to 3%.
At the end of the first nine months of this year, it posted a profit of Tk1,355 crore, which was 2% higher than a year ago.
At the end of the first nine months, its earnings per share stood at Tk25.11.
The multinational company said in its price-sensitive statement filing on the Dhaka Stock Exchange (DSE), profit increased during the first nine months of 2023, driven by sales growth.
Besides, net finance and current tax expenses declined, which partially offset the increased cost of sales and operating costs.
But BATBC has reported a decline in its net profit during the July to September quarter of 2023 despite an increase in revenue, according to its statements.
In the third quarter of 2023, its revenue witnessed a year-on-year increase of 2% to Tk8,120 crore, and net profit declined by 1% to Tk405 crore due to the higher tax expenses.
Meanwhile, the company's board has approved the capital investment of Tk33.21 crore for a rooftop solar panel with a capacity of 3.2 megawatts and for developing a waste management system.
The company said the investment in a solar panel system would achieve a 50% reduction in carbon dioxide emissions as well as a 50% reduction in renewable electricity usage.
The investment in developing a waste management system would convert tobacco waste into a usable raw material.
BATBC has been publicly listed on the Dhaka Stock Exchange (DSE) since 1977.
In 2022, the company made an annual profit of Tk1,787 crore and paid a 200% cash dividend to its shareholders.
