British American Tobacco posts gains in quarterly revenue, profit

British American Tobacco Bangladesh registered a 10.68% growth in gross revenue and 27.5% growth in profit during the January-March period as sales and exports increased amid the ongoing Covid-19 pandemic.

As per its latest financial statements, in the first quarter of 2021, its gross revenue rose to Tk9,554.09 crore from Tk8,631.89 crore in the same period of the previous year while profits increased to Tk387.2 crore from Tk303.68 crore.

The multinational company said its earnings per share (EPS) had increased in this period because of higher after-tax profits as well as growth in sales volume and cost optimisation compared to the same period last year.

The non-food first moving consumer goods maker's revenue rose in both domestic and export markets. It sells sticks in the local market and exports finished goods as well as leaf.

Its tobacco products include Benson & Hedges, John Player Gold Leaf, Capstan, Star, Royals, Derby, Pilot, and Hollywood. It has a cigarette factory in Dhaka, a green leaf threshing plant in Kushtia, and a green leaf redrying facility in Manikganj.

People became more health conscious amid the pandemic. Yet, the company saw its stick sales rise by 6.65% in the domestic market.

Its domestic revenue in the January-March period increased by around 11% to Tk9,521.33 crore from Tk8,604.28 crore in the same period of the previous year.

The company's earnings from finished goods and leaf exports increased compared to the same period of the previous year. Finished goods exports revenue rose by 39.72% while sticks exports increased to 1.09 crore sticks from 68 lakh in the previous year.

Moreover, leaf exports rose by 18% to Tk31.73 crore from Tk26.87 crore in the same period of the previous year.

British American Tobacco Bangladesh was listed on the stock exchanges in 1977. In 2020, it made a profit of Tk1,088.64 crore.

The company will pay 600% cash and 200% stock dividends as its revenue and profit jumped.