BATBC to invest Tk 574cr in Savar factory

British American Tobacco Bangladesh Company (BATBC) has decided to make a fresh investment of Tk 574.20 crore at its factory in Savar to create contingency capacity and take advantage of the upcoming export opportunities. 

The disclosure was made through the company’s price-sensitive information on Thursday on the Dhaka bourse’s website.

The tobacco manufacturer’s board of directors approved the investment decision at a meeting on March 30.

According to the company, the investment would cater to the upcoming export opportunities and create contingency capacity.

It will be funded from internal sources and bank financing based on the cash flow of the company.

Earlier in February last year, the company’s board of directors approved an investment of over Tk 500 crore for the expansion of the Savar factory.

BATBC shares changed hands at Tk 584.50 on the Dhaka Stock Exchange (DSE) on Thursday. Last year, BATBC’s share price fluctuated between Tk 500 and Tk 1,800.

BATBC had recommended a 150 per cent or Tk 15 final cash dividend for 2021.

However, the total cash dividend for the fiscal year ended December 31, 2021 will be 275 percent, or Tk 27.50, including the interim cash dividend of 125 percent, or Tk 12.50, which has already been paid.

The tobacco manufacturer has reported earnings per share (EPS) of Tk 27.72, net asset value (NAV) per share of Tk 68.13, and NOCFPS of Tk 14.73 for the year ended on December 31, 2021, as against Tk 20.16, Tk 62.96 and Tk 27.81 respectively for the same period of the previous year.

The company had announced an 800 per cent dividend -- 200 percent stock and 600 per cent cash – for 2020.

The company’s total number of outstanding securities is 54 crore with a face value of Tk 10.

BATBC has given a 400 per cent cash dividend in 2019, 700 per cent dividend in 2018 – 500 per cent stock and 200 per cent cash, 600 per cent cash dividend in 2017 and 600 per cent cash dividend in 2016.

On February 28, 2022, the company’s shareholding percentage was:

sponsor/director: 72.91 per cent, govt: 0.64 per cent, institute: 12.03 per cent, foreign: 7.94 per cent and public: 6.48 per cent.