Desk Report,
BATBC sells cigarettes worth Tk 23,500 crore in six months
The profits of the multinational British American Tobacco Bangladesh Company (BATBC), listed on the stock exchange, have plummeted. The company’s profits have fallen by more than half in the first six months of this year compared to the first six months of last year. However, the company’s cigarette sales have increased by 5 percent or more than Tk 1,000 crore during this period.
BATBC sells cigarettes worth Tk 23,500 crore in six months
The company released its half-year financial report on Sunday at the country’s main stock exchange, Dhaka Stock Exchange (DSE). By analyzing the information in that financial report, various aspects related to BABTC’s profit, income, expenses and taxes can be known. According to the financial report, in the first half of this year (January-June), British American Tobacco earned Tk 23,482 crore from selling cigarettes. The company’s sales revenue in the same period last year was Tk 22,340 crore. Accordingly, the income from selling cigarettes has increased by Tk 1,142 crore or 5 percent in a year.
According to the report, after deducting all expenses and taxes in the first half of this year, the company made a profit of Tk 415 crore. In the same period last year, the amount was Tk 925 crore. Accordingly, British American Tobacco’s profit in the first half of this year has decreased by more than half or Tk 510 crore compared to the first half of last year.
Why did the profit decrease so much despite the increase in income? This information was found in the analysis of the financial report. The company’s financial report says that supplementary duties and VAT, operating expenses have increased significantly in the space of a year. Due to these reasons, although income has increased, profit has not increased in comparison. On the contrary, the additional expenses of last year were not offset by the additional income. This has put a strain on profit.
The reason for the decrease in the company’s profit was informed in the DAC today that the cigarette sales of British American Tobacco have decreased significantly in the first six months of this year compared to the first six months of last year. Although sales have not increased, income has increased compared to last year due to price increases. Apart from this, the company’s operating expenses have also increased significantly in the first half of this year due to the relocation of its office from Dhaka. Due to which, profits have been affected.
It is worth noting that BAT’s factory was shifted from Mohakhali in the capital to Ashulia from July 1.
According to the financial report, British American Tobacco’s operating expenses in the first six months of this year were Tk 653 crore. The amount was Tk 384 crore in the same period last year.
In addition, BATBC paid Tk 19,405 crore to the government in supplementary duty and VAT on cigarettes in these six months from January to June. The company paid Tk 17,454 crore to the government in this regard in the same period last year. Accordingly, the company’s expenses for supplementary duty and VAT have increased by about Tk 2,000 crore in a year.
Meanwhile, on the first working day of the week, the price of each share of British American Tobacco fell by about 26 taka or 8 percent in the Dhaka market on Sunday due to the news of a decline in profits. This is the highest price drop of the company’s shares in a single day in recent times. At the end of trading, its share price on the DSE fell to 296 taka 20 paisa. Despite the decline in the price of the chair, the company retained the top spot in the Dhaka market yesterday. More than 1.13 million shares of the company worth about 390 million taka changed hands in the Dhaka market today.
