Monday, May 06, 2024
British American Tobacco (BAT) Bangladesh, the maker of Benson and many other cigarette brands, decided to invest Tk 150 crore in its Savar factory site in bid to scale up productivity to meet the growing customer demand.
The tobacco manufacturer’s board of directors already approved the investment decision at a recently held board meeting, as per a disclosure filed with the Dhaka Stock Exchange (DSE) on Sunday.
The multinational company also informed that this investment would uplift its productivity.
The investment will be generated from internal sources and bank financing based on the company’s cash flow, the DSE filing read.
As per the disclosure, the cigarette maker is constructing a bonded warehouse for the storage of wrapping material, leaf, and finished goods with factory specifications and building standards equivalent to Tk 103 crore.
The company also invested in the electrical, fire detection and protection systems, air conditioning and ventilation systems, IT systems, and security systems, which amounted to Tk 24.50 crore.
As per yesterday’s disclosure, the construction of site ancillary facilities for employee wellbeing and factory services is equivalent to Tk 21.40 crore, while the construction of a reinforced cement concrete road and creating underground drainage are equivalent to Tk 1.90 crore.
Earlier in the year, BAT made a fresh investment of Tk 574.20 crore in its factory in Savar to create contingency capacity and take advantage of the upcoming export opportunities.
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 made 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.
