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Dhaka, July 26, 2025 — British American Tobacco Bangladesh (BAT Bangladesh) has reported a sharp 81 per cent decline in its net profit for the second quarter of 2025, with earnings falling to Tk 972 million, compared to Tk 5.12 billion in the same period last year.

The downturn, according to the company’s financial disclosures, was primarily driven by a significant drop in domestic sales and the temporary shutdown of its Dhaka factory, which led to a rise in operating expenses.

Earnings per share (EPS) fell to Tk 1.80 in April–June this year, down from Tk 9.48 in Q2 of 2024. The company’s net revenue during the quarter dropped over 23 per cent year-on-year to Tk 22.13 billion from Tk 28.91 billion.

BAT Bangladesh cited “higher inflationary adjustments in the cost base” and “partial impairment costs” linked to the Dhaka factory closure as key contributors to the decline in both top-line and bottom-line performance.

Operating expenses surged by 84 per cent year-on-year to Tk 4.88 billion in Q2, reflecting the costs associated with the production halt at the capital-based facility.

Half-Yearly Performance

During the January–June period, BAT’s net profit fell 55 per cent to Tk 4.15 billion from Tk 9.17 billion in the same period last year. Net revenue for the half-year also declined by 16.5 per cent to Tk 40.77 billion.

Domestic sales fell 20 per cent year-on-year to Tk 37.76 billion, while cigarette stick sales dropped 31 per cent due to persistent inflationary pressures. However, leaf exports provided a silver lining, surging sevenfold to Tk 1.94 billion in the first half of the year.

The factory in Dhaka was officially closed on July 1, following a Supreme Court verdict rejecting BAT’s appeal to extend its land lease. The company said it is currently working to expand capacity at its Savar manufacturing facility to mitigate the impact of the production shortfall.

In line with this plan, BAT Bangladesh’s board last month approved a fresh investment of Tk 2.97 billion to enhance output at the Savar plant. The company has invested over Tk 12 billion since 2021 in capacity expansion initiatives.

Financial Indicators

BAT Bangladesh’s net operating cash flow per share turned positive in the first half of 2025, reaching Tk 9.05, compared to a negative Tk 20.87 in the same period last year. The improvement was attributed to increased export earnings and reduced cash outflows.

The company’s net asset value (NAV) per share fell to Tk 99.57 as of June 2025, down from Tk 106.47 recorded at the end of 2024.

Full-Year 2024 Recap

For the calendar year 2024, BAT Bangladesh posted a modest 2 per cent rise in net profit to Tk 17.51 billion. Despite the tepid earnings growth, the company distributed a 300 per cent cash dividend, its highest in three years.

BAT Bangladesh operates manufacturing plants in Dhaka and Savar, along with a green leaf threshing facility in Kushtia and a re-drying plant in Manikganj.