Massive leaf export augments British American Tobacco profits
A total of 4859.73 crore cigarette sticks were sold locally in the first nine months of 2022
Multinational cigarette manufacturer British American Tobacco (BAT) Bangladesh posted huge year-on-year growth in its profit for the July to September quarter of this year, thanks to a staggering surge in its leaf export and higher cigarette sales in the country.
In the first nine months of 2022, the company's leaf export increased by 159% to Tk257 crore and domestic sales grew by 13.4% to Tk5,902.16 crore, compared to the January to September period of 2021.
Consequently, its revenue increased by 16% to Tk6,160.86 crore and profit grew by 14% to Tk1,324.11 crore in the first nine months.
In the third (July to September) quarter of 2022, the net revenue of BAT Bangladesh jumped 38% to Tk2,027.05 crore, and profit increased 39% to Tk410.23 crore compared to the same quarter of 2021.
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"Leaf export has increased significantly at this time as our products are entering China's market. Exporting cigarettes is challenging, but we are still looking for new markets to penetrate."
wing to this stellar growth, the company has recommended a 100% interim cash dividend and the record date for the dividend entitlement has been set as 21 November.
Company Secretary Md Azizur Rahman told The Business Standard, "Leaf export has increased significantly at this time as our products are entering China's market. Exporting cigarettes is challenging, but we are still looking for new markets to penetrate."
"Now that leaf export has started, revenue from exports will increase even more in the future," he added.
In the January to September period of 2022, a total of 4859.73 crore cigarette sticks were sold in the domestic market, which is 7% higher than in the same period last year.
On the other hand, its finished goods export declined by 68% to Tk1.12 crore in the first nine months this year compared to the same period of 2021.
British American Tobacco Bangladesh has been publicly listed on the Dhaka Stock Exchange (DSE) since 1977.
It manufactures tobacco products and markets brands, Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Derby, Pilot, Hollywood, and Lucky Strike.
It has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, and a green leaf re-drying plant in Manikganj.
In 2021, the company made an annual profit of Tk1,494.10 crore and paid a 275% cash dividend to its shareholders.
