BATBC gains high profit in pandemic

When most of the businesses sustained damages amid the Covid-19 pandemic, British American Tobacco Bangladesh Company (BATBC), a global cigarette manufacturer, remained unharmed and flourished further.

The company’s profit reached 10-year-high in the pandemic as it posted a profit of Tk 1,089 crore in 2020, which is 17.72 per cent up from the previous year’s Tk 1,001 crore profit.

The listed multinational company has been successful in retaining its profit streak in the first six months of the current year. It reported 43.58 per cent increase in profit to stand at Tk 862 crore during the period.

Besides, BATBC is also making fresh investments to ensure that the robust growth continues. To grab the export opportunities, the company has invested Tk 514.7 crore in two phases to expand its factory in Savar, Dhaka.

This scenario was obtained by analysing the company’s annual report and unaudited half-yearly financial statements for the current year.

In its annual report for FY20, the company stated that there was no interruption in their supply during pandemic. Profits increased as a result of good management, uninterrupted product supply and cost cutting.

BATBC Managing Director Shehzad Munim said that their operations did not cease even for a single day, despite a full-blown pandemic when everything else looked bleak.

“It was achieved due to the perseverance and courage shown by our employees, partners and stakeholders. We were able to ensure health and safety for all,” he added.

At the same time, the BATBC ensured that the farmers get best prices for their produce and leaf-buying operations remain uninterrupted despite pandemic-induced restrictions, Munim noted.

The company did not resort to layoffs or pay cuts as it made good profits during the tiring time.

The livelihood of around 1.35 million families, directly and indirectly, depends on the operations of the company.

The BATBC paid the highest sum of tax – Tk 24,250 crore – last year, contributing around 8 per cent to the total internal revenue of the country.

BATBC is also one of the top performing companies listed on the Dhaka and Chittagong Stock Exchanges, and one of the top companies in terms of market capitalisation.

The government also has equity ownership in the company and has representatives on its Board.

Company sponsors and directors held 72.91 per cent shares of BATBC as of June 30, 2021, while the government holding was 0.64 per cent, institute holding 11.97 per cent, foreign holding 9.15 per cent and public holding 5.33 per cent.

The company was listed on the Dhaka Stock Exchange and Chittagong Stock Exchange in 1977. Its authorised capital is Tk 540 crore while its paid-up capital is same.

With a market capitalisation of Tk 28,846.8 crore, BATBC’s total number of outstanding securities is 54 crore. The face value of each share is Tk 10 at the both bourses.