British American Tobacco (BAT) Bangladesh, the maker of Benson and many other cigarette brands, has posted a 13.90 per cent year-on-year jump in gross revenue to Tk 21,229 crore in the first six months (January–June) of 2023, steered by higher cigarette sales and leaf exports.
Meanwhile, in the same period, the multinational publicly traded company’s net operating cash flow per share (NOCFPS) was Tk 1.23 negative due to higher VAT, supplementary duty, tax payments, and reduced receipts from customers.
The country’s market leader in tobacco-industry posted a 4 per cent year-on-year growth in net profit in the January-June period this year, thanks to higher cigarette sales and leaf exports.
The cigarette maker’s first half yearly profit rose to Tk 949.7 crore in H1 this year from Tk 913.9 crore recorded in the same period last year.
Its earnings per share (EPS) stood at Tk 17.59 for the January-June period of 2023, up from Tk 16.93 reported for the same period a year before.
“The EPS has increased year-on-year because of the volume growth and higher leaf exports,” the company said in a disclosure filed with the Dhaka bourse on Monday.
Moreover, the multinational firm registered a 15 per cent rise in sales to Tk 11,329 crore in the current year’s April-June quarter.
But its June quarter profit inched down by 0.80 per cent to Tk 493 crore, from Tk 497 crore in the same quarter a year earlier due to higher production costs and increased operating expenses.
Its EPS was Tk 9.14 for April–June 2023 against Tk 9.20 for the same period last year.
British American Tobacco (BAT) Bangladesh’s NOCFPS was Tk 1.23 negative for Jan-Jun’23 against Tk 16.77 for the same period in 2022.
The negative NOCFPS implies that the company was suffering a liquidity shortage. The listed company said the NOCFPS decreased year-on-year owing to higher VAT, SD, HDSC, and tax payments and reduced receipts from customers due to credit.
The company’s net asset value (NAV) per share was Tk 83.85 as on June 30 this year, which was Tk 70.06 till June 30 last year.
The maker of Benson saw a 13 per cent year-on-year jump in gross revenue to Tk 9,899 crore in the first quarter of the current year.
The company’s net profit rose by 9.35 per cent to Tk 456 crore in the current year’s March quarter, compared to Tk 417 crore in the same period one year ago.
In the first quarter, BAT Bangladesh said it was going to invest Tk 60.70 crore to purchase equipment and a centralised uninterrupted power supply device.
The country’s tobacco-industry market leader will use the money to purchase winnower tobacco recovery equipment, hinge-lid maker and packer lines, and a centralised uninterrupted power supply device.
The investment would enhance the capacity and productivity of the company and would be funded from internal sources and bank financing.
As per BAT Bangladesh’s unaudited financial statements, its gross revenue was Tk 9,899 crore in the Jan-Mar’23 quarter, which was Tk 8,767 crore in the same period last year.
The cigarette maker’s net profit stood at Tk 456 crore in the first three months this year, up from Tk 417 crore in the corresponding period last year.
Its earnings per share were Tk 8.44 for Jan-Mar’23 against Tk 7.73 for the same period the last year.
The net operating cash flow per Share was Tk 2.09 negative for January–March 2023 versus Tk 6.11 for January-March 2022.
BAT Bangladesh paid a total of 200 per cent cash dividends in 2022, the lowest since 2015.
The listed multinational company made a profit of Tk 1,787 crore in 2022, compared to Tk 1,497 crore in 2021. Its 2022 profit was 37.47 per cent higher from the profit outlay of Tk 1,089 crore in 2020.
Riding on the solid business growth, BAT Bangladesh’s earnings per share surged to Tk 33.1 in 2022 from Tk 27.72 the year before.
BAT shares remained stuck at the floor price of Tk 518.70 each on the DSE trading board since September 7 last year.
BAT Bangladesh manufactures a wide array of tobacco products, namely Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Lucky Strike, Derby, Pilot, Flag, and Hollywood.
It was listed on the Dhaka Stock Exchange in 1977.
Headquartered in Dhaka, the company has cigarette factories in Dhaka and Savar. Besides, it operates a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.
