BAT Bangladesh announces lowest dividend in over a decade

Despite maintaining similar year-on-year net profit, British American Tobacco (BAT) Bangladesh halved its cash dividend to 100% for the year 2023, marking the lowest rate in over a decade.

On Thursday, the multinational tobacco manufacturer reported a profit of Tk1,788 crore in 2023, a marginal increase from Tk1,787 crore in 2022. Despite the similar profit, the company declared a dividend representing only 30% of the last year's total profit. This marks a significant decrease from the 200% cash dividend payout in 2022.

While dividend data for BAT Bangladesh is not available before 2010, the company was known for announcing generous dividends over the years.

The announcement of the dividend was made following a board meeting held on Thursday evening.

As per the disclosure, the company reported an earnings per share of Tk33.11 in 2023, a marginal increase from Tk33.10 in the previous year.

BAT Bangladesh is scheduled to convene its annual general meeting on 28 March, with the record date for dividend entitlement set on 3 March.

Despite consistent business growth, the company's shares have remained stagnant at the floor price of Tk518.70 per share on the Dhaka Stock Exchange (DSE) since September 2022.

The company's floor price is set to be lifted on 4 March, following the securities regulator's recent decision.

BAT Bangladesh emerged as the second-largest listed company by market capitalisation, reaching Tk28,000 crore as of Thursday.

The cigarette manufacturer operates factories in Dhaka and Savar, along with a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.

Over the past three years, the company has invested more than Tk1,200 crore in various phases to enhance its production capacity and meet the growing demand.

BAT Bangladesh is yet to publish detailed annual financial statements. However, based on available data, the company's net turnover for the first nine months of 2023 grew by 10%, reaching Tk6,793 crore. During the same period, domestic cigarette sales witnessed a 10% year-on-year increase, totalling Tk6,493 crore. Additionally, leaf exports surged by 16%, amounting to Tk30 crore during the January-September period of 2023.

BAT exports cigarettes to various countries, with notable markets like China and the Maldives. China, being a significant market for cigarettes, contributes substantially to the company's global exports.

In addition to cigarettes, BAT also exports tobacco green leaf to a range of countries, including Belgium, Spain, the Netherlands, Turkey, the United Arab Emirates, Germany, the UK, the United States, and South Africa.